Effectiveness of Pay, Pension and Rewards System in Improving Employee Satisfaction in UK Healthcare Industry

MSc International Management
IMA7006 Dissertation
Dissertation Title
(To investigate the effectiveness of pay,
pension and rewards system in improving
employee’s satisfaction towards their job
within UK healthcare industry)
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Table of Contents
Abstract 3
Acknowledgement 4
Chapter 1: Introduction 5-9
1.1 Background to research topic 5-6
1.2 Background to research organisation 6
1.3 Research rationale 7
1.4 Research questions 7
1.5 Research aims and objectives 8
Chapter 2: Literature review 10-21
2.1 Introduction of literature review 10
2.2 Main body with heading and sub-headings 10-20
2.3 Conclusion of literature review 21
Chapter 3: Methodology 22-26
3.1 Research philosophy 22
3.2 Research approach 23
3.3 Research strategy 24
3.4 Research methodology 24-25
3.5 Research instruments/tools 25
3.6 Sampling 26
3.6 Ethical implications 26
Chapter 4: Discussion 27-34
Chapter 5: Conclusion, recommendations and implications for
further research 35-39
5.1 Conclusion 35-37
5.2 Recommendations 37-39
5.3 Implications for further research 39
References 40-45
Word Count 46
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Abstract
Purpose: In the current study information about impact of pay, pension and rewards
on employee’s performance is carried out. It has also included all those factors which directly
influence the performance and satisfaction of employees in an organisation.
Methodology: The current study has used research methods which assist in the
accumulation and analysis of information. It has used secondary research methods for
assembling in-depth data systematically. Some of the secondary sources are: newspapers,
journals, articles, publications, magazines and so on.
Findings: The main findings of the current study is that rewards, pay and pension are
very important for increasing the satisfaction and performance of employees. It has also
carried out that employees are more inclined towards getting several types of rewards so that
can get motivation to work towards fulfilment of their objectives.
Key word: Pay, pension, rewards etc.
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Acknowledgement
I would like express gratitude to my professor for providing me such a wonderful
opportunity to carry out the investigation of pay, pension and reward system to improve
employee satisfaction. With their support and proper guideline, I am able to conduct the
investigation in effective manner. They found me capable and provide me all the necessary
facilities so that I can execute my research in best way.
Apart from that, I would also like to thanks my family members and friends to encourage me
for executing the investigation in sound way.
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Chapter 1: Introduction
1.1 Background to research topic
In the recent time, employees are the biggest assets for the organisation. They are
those people which helps in company's growth and success. It is very vital for the company
to lay their focus on employee and satisfy them in large manner. The productivity and
performance of the employee large depends upon the level of satisfaction they have towards
their job. To enhance the satisfaction level organisation should shift their focus on adopting
various types of pay and reward system in their company (Berliana, Siregar and Gustian,
2018). With the change in the way of working company are adopting the system on pay,
pension and reward within their organisation so that they can retain their employee. It also
helps them to acquires talented employee within the organisation and improve the
performance in better manner. In the current era reward system is one of the best
management tool which aids in increasing the employee satisfaction. It also helps in raising
the expectation of the workforce as pay and pension motivate the staff in large way (Kitsios,
and Kamariotou, 2021).
Pay refers as the tool where employee received extra incentive as per their
performance. Pension means a retirement fund which a workforce received after they leave
the company. In last reward is a monetary and non-monetary benefit that employees received
apart from their compensation and salary. These all help the organisation in effective manner
as they directly impact the job satisfaction of the employees. The current report will be
covering the role that is played by pay, pension and reward system in an organisation. There
are various benefits that can be received by a company some of them are high employee
motivation, higher company values, increased productivity and performance and many more.
One of the vital role that reward system plays is satisfying the employee and increasing the
retention rate within the organisation (Rai, Ghosh, and Dutta, 2019).
In the present age, many organisations are using theses concept within the workplace
so that they can reduce the turnover and improve their performance. As by satisfying the
employee market image and reputation of the company in large and better manner. In the
health sector increasing the satisfaction level of the employee is very necessary as it helps in
retaining the employee as well improve their productivity. This is because the time and
efforts which are put by the healthcare workers is more and it is very vital to satisfy them so
that they can put best. So the current research report will be focusing on the role of pay,
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pension and reward on employee satisfaction of the employees in healthcare sector (Greene,
2018).
Pay, pension and reward system plays an important role within an organisation as it
helps in enhancing the morale and motivation level of staff due to which they give productive
results. It also helps in improving the satisfaction level of employees that helps in boosting
their engagement level. When staff complete their task in better manner, it is the
responsibility of the managers to pay and reward them on the basis of their performance and
efficiency which helps in developing positive attitude among them towards their work and
organisation. Therefore, reward, pay and pension are the tools which are used by the
company in order to foster the culture, values and behaviour employees require. By offering
reward, pay and pension, company can attain the business goals and objectives in better
manner. These system is important for the employees as it helps them to perform good work,
feel motivated and valued which increases the success rate and productivity of business.
There are various benefits of offering reward, pay and compensation to its employees such as
it shows appreciation, creates positive workplace, improve productivity, encourage friendly
competition, boost employee retention and also increase motivation level of staff. Moreover,
it is important for organisation to boost the satisfaction level of staff so that they can sustain
in business for long run and also contribute their better output in accomplishing the target. By
offering, pension and rewards benefits to its employees, company can attract and retain
talented staff within workplace and also boost the productivity and efficiency of employees
so that they can give better outcomes. It is being identified that a well paid staff is highly
motivated so organisation that reward high performing staff with raises will help in inspiring
other staff to keep working at high level.
1.2 Background to research organisation
To identify the role of pay, pension and reward system the chosen healthcare
organisation is NHS. NHS stands for national health service which is a public healthcare
service suited in England. It is among the one of the best four national services provider
system in United Kingdom. The system was founded in the year 1948 under the jurisdiction
of England. After the Brazilian Sistema Unico it is the second largest healthcare player in
overall world. The gaol of the organisation is to improve the standard of living in the
community and for this they are also providing free treatment to those people who cannot
afford treatments. The NHS in England was governed and controlled under the governance of
UK with the assistance of department of health and social care. For this they require skilled
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and talented employee within their organisation. Thus, the national health service as a
company is chosen so that it can analysed the role of reward system in increasing the
satisfaction of employee.
1.3 Research rationale
The major rational for executing the investigation is to gain in depth knowledge on
the effectiveness of employee satisfaction in an organisation. This research helps in identified
the value of pay, pension and reward system for the organisation as well as for workforce. In
addition to that the present investigation also aids in gaining detailed insight on the concept
of reward system for the company (Yap Peng Lok and et. Al, 2019). The current
investigation also highlights the role of pay, pension and reward system in improving the
satisfaction of the workforce. It would also identify the advantage of satisfied workforce
within a health care industry.
Apart from that the present investigation is also of great interest for me as through
this dual objective will be fulfilled that are personal and professional objective. In the respect
to the personal objective, the existing investigation helps in completing the overall
dissertation in structural format and in more scientific manner. This is because various
research skill would be gained while carrying out the investigation which are communication
skill, data gathering skill, problem solving skill and many more (Hur, 2018). On the other
side, in respect to professional objective, the investigation will help the researcher in
developing professional career in sound manner. This is because various pay, pension and
reward scheme will be learned and this could be applied by the investigator in their
organisation when they will be working as a human resource manager. Thus, the present
investigation is quite vital as it helps in attaining the dual perspective in effective way.
1.4 Research question (s)
The question which is covered in the current investigation are as follow:
 What is the concept of pay, pension, and rewards system in context with UK
healthcare industry?
 What is the role of pay, pension, and rewards system in boosting satisfaction level
among employees of NHS?
 What are the benefits of satisfied employees in NHS?
1.5 Research aims and objectives
Aim
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“To investigate the effectiveness of pay, pension, and rewards system in improving
employee’s satisfaction towards their job within UK healthcare industry”. A study on NHS
Research Objectives
 To develop understanding regarding the pay, pension, and rewards system in context
with UK healthcare industry
 To determine the role of pay, pension, and rewards system in boosting satisfaction
level among employees of NHS in the UK
 To examine the benefits of satisfied employees in NHS UK
1.6 Significance of the study
The key significance of the current investigation is to determine the concept of pay,
pension and reward system. The research aids in determining the role of reward system in
increasing the satisfaction level of the employee. It also helps in analysing the benefit that
organisation will gained after increasing the amount of employee satisfaction. This study will
also cover the factors which will affect the pay, pensions and reward system strategy that
organisation uses for their staff. Through this research an evidence will be gathered about
the importance of reward system in an organisation (Fauser and et. Al, 2021).
Another significance of the research is that the current investigation is beneficially for
organisation, researchers and managers. The current investigation is important for the
researcher as it helps them to acquire fundamental understanding about the topic. This
knowledge will help them to carry out the further research in sound manner. For human
resource manager this investigation is beneficial as it helps in them to know the strategy
which they can use to provide effective par, pension and reward to their workforce. In last,
for the organisation the current investigation is beneficial as it assists them to know the
importance of employee satisfaction in increasing the performance and productivity.
1.7 Outline of the methodology
In the current investigation, the researcher focused on choosing qualitative research
methods in order to collect the information for the chosen topic. Qualitative piece of
information is selected by the researcher as it identify the concept and framework of the
current topic. Researcher has focuses on choosing secondary sources for gathering and
accumulating the data related to the chosen topic. There are different scholarly sources used
by the investigator for obtaining the relevant data related to the study such as articles, books,
journals, publication, newspapers and so on. Thus, qualitative information helps in gathering
in-depth information related to the proposed study. While using qualitative research methods,
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