Culture vs Compensation: Impact on Employee Engagement

This paper discusses the importance of culture and compensation in maintaining employee engagement in the workplace. It explains the different aspects of compensation and how culture affects employee behavior. The paper also emphasizes the need for effective communication and performance management to enhance employee engagement.

Reward and performance management

Reward and performance management
The culture of the company or employee compensation what matters more in
today's world for positive levels of employee engagement?'
In this paper the discussion will be made on the topic related to culture of the company or
employee compensation in the workplace. It can be stated that these both the factors are
considered as an important aspect that can help in maintaining the employee engagement in the
workplace. Compensation focuses on the rewards which employees receive when they complete
their assigned task in an effective manner.
It has been seen that compensation is the amount which is earned by the employees according to
the performance. Compensation can be divided into two parts. First is related to intrinsic
compensation and second is related to extrinsic compensation. It has been seen that intrinsic
compensation focuses on the overall psychology of the employees and it also showcase the
overall results which is derived by performing a particular job (Shields et al., 2015).
Next is extrinsic compensation which emphasizes on both monetary and non-monetary rewards.
Compensation can be related to the base pay which considers hourly pay and annual pay. There
are various employees’ benefits which are also offered. The employee benefits are related to
discretionary benefits and also legally required benefits. Discretionary benefits can be categories
into three which can be protection programs, paid time off and services. In protection programs it
has been seen that focus is given on offering family benefits and also to promote the health of the
employees. Paid time off offers the employees with proper pay for a particular time when they
are not doing their particular job (Hickman and Silva, 2018).
Services are also offered to the employees as a tuition reimbursement and day care assistance to
the employees and their families. Legally required benefits take into consideration the federal
legislation which helps to encourage health and safety of the workers and also it focuses on
maintaining the family income. It has been analyzed that performance is related to behavior of
the employees and also it relates with the activities which are done by the employees in the
workplace (Kearney, 2018).
But if culture of the company is taken into consideration, then it has been seen that it is one of
the important factor which helps to enhance the performance of the employees. If a workplace
does not have a proper culture then it can be difficult for the employees to give their best towards

Reward and performance management
the activities of the company. If there is no proper culture in the workplace then it can be
difficult for the employees to maintain their overall productivity level in the workplace. Positive
culture in the workplace is important as it helps to encourage the overall motivation level of the
employees. If proper culture is there then it can be seen that employees can be easy to manage
the activities by the employees (Reiche et al., 2016).
It is necessary for the top authorities to focus on maintaining the culture of the company so that
it can be simple to enhance the self-esteem of the individuals. If the workplace, does not have
proper culture then it can impact the working pattern of the employees. It is necessary to have
proper culture as it can help to achieve positive outcome. It can be examined that proper culture
can be only be maintained if there is proper communication in the workplace. If proper
communication is not there then it can affect the employee’s activities and they will not be able
to communicate with the supervisors (Chitrakar, 2017).
It can be investigated that proper culture in the workplace helps the employees to transfer their
messages to one another. It will also help to reduce the conflicts which take place in the
workplace. It is necessary for the higher authorities to focus on managing the flow of
communication so that subordinates in the workplace can convey or share their feelings in a
proper manner. It can also be one of the chances for the higher authorities to manage their overall
level of performance. Proper culture is related with effective communication in the workplace. It
is necessary for the managers to have proper insight about their subordinates and they can easily
give feedback which will directly affect the overall engagement of the employees in the
workplace (Cardy and Leonard, 2014).
It has been seen that in the present scenario, culture of the workplace is also one of the important
factor which is important to be considered as it can affect the overall growth of the company.
Culture is considered as the important aspect that can help to enhance the overall level of
employee engagement in the workplace. Employee engagement is linked with the culture of the
company which is necessary to be maintained so that it can be employees can communicate in a
proper manner with each other (Madhani, 2015).
As, culture is considered as one of the factor, it has been seen that the factor related to
compensation is also one the essential aspect in the workplace. In compensation, performance

Reward and performance management
appraisal is also one of the essential aspects which help to enhance the overall level of employee
engagement in the workplace. It can be seen that performance appraisal relates with the overall
behavioral system in which the employees are rated and also the overall behavior of the
individual is taken into consideration (Young and Ghoshal, 2016).
The next factor is related to goal oriented system which is considered for managerial and
professionalism of the employees and it also analyze the overall progress of the employees in
reference to the overall objectives of the strategic planning. Performance appraisal practices
focuses on conducting the overall analysis of the .job and also incorporate the results related to
ratings. It helps in training the supervisors which can helps to attain the positive outcome.
Performance appraisal is related with enhancing the pay which is given to the employees. It has
been seen this strategy helps to motivate the employees and also their engagement or dedication
level enhances (DeNisi and Smith, 2014). To maximize the employee engagement level in the
workplace it is necessary for the employees to focus on maintaining the overall level of
productivity. Also the culture of the workplace is related with the relation of the employees. It
can be examined that if employees in the workplace are behaving in a proper way with each
other then it can help in maintaining their relation.
Employee engagement is considered as one of the factor on which the focus is given on engaging
the employees towards the activities of the company. It is important for the higher authorities to
maximize the level of dedication of the employees so that it can be simple to attain the positive
outcome in the workplace. In today’s business world, it has been seen that culture is considered
as one of the important aspect as the overall productivity level of the employees is maintained if
there is positive culture in the workplace (Mone and London, 2018).
If there is proper culture then only employees can give their best and can earn incentives easily.
Without having proper culture in the workplace it can be difficult for the employees to earn
incentives. Compensation is then considered as the important component if culture of the
workplace is positive. Positivity in the workplace not only motivates the employees to give their
best but also boost their level of confidence towards the work which is assigned by the higher
authorities (Fitzsimmons and Stamper, 2014).

Reward and performance management
To enhance the employee engagement in the workplace, it has been seen that performance
management system is also one essential aspect which maximize the overall productivity and
also enhances the profits of the company. But it can be investigated that there are various
drawbacks which are related to implementation of the performance management system of the
employees. If performance system in the workplace is not implemented in the proper manner
then it can be analyzed that it can reduce the self-esteem of the employees and can also enhance
the dissatisfaction of the employees towards the activities which are assigned. If performance
management is not implemented in a proper manner then it can also lead to the false information
and can affect the overall activities of the company (Hatch, 2018).
By managing the overall performance management system it can be seen that it can be easy for
the employees to earn rewards and incentives. Also, it is the responsibility of the higher
authority to focus on giving reward system benefit to the employees like income protection,
allowances and also motivation. If proper allowance system is there then it can be easy to
accomplish the overall goals and objectives by the employees. The employees will give their best
can attain maximize outcome from the assigned activities. The intangible returns which are
related to the reward system are relational returns. In which it has been seen that focus is given
on the recognition and status and also it enhances the learning opportunities of the employees in
the workplace (Buckingham and Goodall, 2015).
It can also be stated that performance is related with the rewards. If performance of the
employees is good then it can be simple for them to earn more rewards. It is necessary for the
employees to maintain their performance so that it can be easy for them to earn incentives. There
are companies who offer incentives to the employees by focusing on their overall performance.
Also, according to the performance the incentives are offered to the employees that boost their
overall efficiency in the working system (Girma, 2016).
So, it cannot be easy to differentiate that is compensation is better or culture because it has been
seen that both the factors are equally important for the employees. If there is no proper
compensation policy then it can demotivate them towards their work and if there is no positive
culture then it can affect their working system. Therefore, it can be easily stated that in the
present scenario culture and compensation policy both are considered as one of the important

Reward and performance management
aspect for the employees in the workplace. It can help them to achieve success and also to
develop their skills (Ewenstein, Hancock and Komm, 2016).
But on the other hand if focus is given on the entire culture of the workplace, then it can be
stated that culture is one of the important aspect on which the focus is given by the employees.
The Culture of the workplace is important to be considered as it is one of the initial factor on
which the employees give emphasis. If the culture of the workplace is not positive then
employees will not be able to give their best towards the overall activities of the company. If
there is positive culture in the workplace then only it can be simple for the employees to
maintain their efficiency towards the work. Also the rewards can be earned easily if there is
positive culture in the workplace. It will also help in building strong relations of the employees
in the workplace and can help the higher authorities to attain positive outcome (Kegan and
Lahey, 2016).
So, by analyzing the paper it can be concluded that culture plays an important role in enhancing
the overall employee engagement in the workplace. If culture is positive then it can be simple for
the higher authorities to achieve positive outcome and it will also motivate the employees to give
their best towards the organizational activities. So, it is important for the employees to focus on
maintaining the culture of the workplace so that it can be easy to manage the activities in the
workplace. It will also help in earning more incentives in the workplace. It is the duty of the
higher authority to focus on managing the activities of the employees by emphasizing on the
employee engagement in the workplace.
Therefore, the company can achieve success in the competitive market if there is proper culture
and compensation policy given by the organization. Also, it is the responsibility of the top
management to emphasize on maintaining the level of employee engagement as it can help in
accomplishing and can help in attaining the competitive advantage in a proper manner. So, focus
should be given on culture and also on the compensation policy to maintain the employee
engagement in the workplace.

Reward and performance management
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Reward and performance management
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