The Impact of Compensation System on Employee Performance: An Analytical Study from the Perspective of Employees at Soran University/ Erbil Governorate/Kurdistan Region of Iraq

The main purpose of this study is to discover the impact of the compensation system on employee performance. To accomplish this objective, a quantitative technique was applied. A structured questionnaire was utilized to collect data from 169 employees at Soran University, chosen through a stratified random sampling method. To either confirm or reject the research's hypotheses, SPSS software version 26 was employed with the Pearson correlation and simple linear regression. The results revealed a significant correlation between the compensation system and employee performance. The incentive dimension ranked highest, while salary ranked lowest, followed by the promotion dimension. For labour force development and national progress, institutions require efficient compensation systems.