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Attached below is my paper: I need you to read it and write an abstract paragraph and a conclusion paragraph. Each half a page. 5 Research Paper _____________ __________ ENG Professor October 9, 2021 Abstract Introduction: Background Information Employee compensation refers to the benefits employees receive in exchange for their services. The concept dates back many years and has contemporarily developed to become an essential component in human resource management. In 1982, there was a wage freeze in France that revolutionized employee compensation (Igalens and Roussel, 1999). During this years, companies favored individual pay rise to collective pay rise. Years later, companies focused on pay rise based on their strategies, corporate culture and employee expectations (Igalens & Roussel, 1999). Presently, employee compensation packages have massive influence on the employee choices. According to (Michael et al., 2016), differences in compensation packages cause the high turnover rates experienced in companies as employees move from organization to another. Thus, despite compensation dating back to many years, it is still an issue contemporarily because of external competition, its emotive nature and internal disparities in compensation. Importance of the Study The study on the impacts of employee compensation packages on employee retention, satisfaction and motivation is crucial in numerous ways. First, the aim of every organization is to retain, satisfy and motivate its workforce to remain productive for a long time. The findings of the study will therefore help organizational managers to use compensation package as a tool to meet the primary objectives of their companies (Ghazanfar et al., 2011). Secondly, employee compensation is rapidly becoming a strategy in many organizations (Groysberg et al., 2021). Best companies are focusing on how to address employee needs to keep the best talent within their firms. The study results will augment the urgent need for improved employee benefits. Lastly, the study is important due to increasing cases of employees migrating moving to rival companies. Managers may apply the knowledge of the study to become more competent in terms of human resource management and avert high turnover incidences. Historical Background of Employee Compensation Packages The history of employee compensation dates back to 2050B.C. In Sumeria, employees were compensated for injuries incurred when at work. Ancient China, Greece and other parts of the world followed suit by introducing laws that protected workers. In the Arab world, employee who incurred injuries on their ears received compensation proportional to the surface area injured. During industrial revolution when manufacturing became widespread, compensation schemes increased due to the augmented use of machines that posed a risk to the workers. In the US, each state formulated its compensation laws to dictate employee benefits. Mississippi was the last state to enact compensation laws for its workers in 1948. Public and private companies offer a range of compensation as a means to maintain a productive workforce. Also, through the years, employee benefits have expanded to include healthcare, bonuses among other benefits. Approaches to solving Compensation Issues One of the approaches intended to ensure effective employee compensation is legislation. Different states in the US developed laws that dictate employee compensation. Another strategy is through formation of trade unions and employee associations. Through these associations, the employees have championed for pay rise and other work benefits. Also, the judiciary has had a role to play in enhancing employee compensation since some compensation disputes ends up in courts. Conclusion of Intro Compensation remains a problem because of external competition. Some firms pay their workers high salaries accompanied with a wide range of benefits compared to others. The high benefits enable the firms to retain, satisfy and maintain their workforce and on the other hand, causes dissatisfaction among workers in other organizations. Thus, the study focuses on the impacts of external competition and internal disparities on employee compensation. Body 1: Logical Support for the Thesis Better compensation packages contribute to employee motivation. Employee motivation is the urge to dedicate ones effort towards success to deliver performance at the workplace and contribute to overall organizational success. A study conducted by (Igalens & Roussel, 1999) showed a relationship between compensation packages and employee motivation. It involved French employees and data was collected through questionnaires send via their emails or given to them directly. The findings of their data analysis showed that ‘under certain conditions, individualized compensation of exempt employees can be a factor of work motivation’ (Igalens & Roussel, 1999). Moreover, exempt employees were motivated by fixed pays rather than bonuses. The trend is explained by the fact that almost all organizations offer their employees benefits such as healthcare insurance coverage and the difference only arises in terms of fixed pays. The results showed that exempt employees were demotivated if there was no direct relationship between performance and fixed pay rise and performance (Igalens & Roussel, 1999). On the other hand, the exempt employees felt the drive to strive in their organizations when the fixed pays were high. This evidence supports that compensation packages influence employee motivation. Organizations that offer better compensation packages to their employees are more likely to keep their workforce motivated. (Ghazanfar et al., 2011) also showed that there was a positive influence between fixed pay and employee motivation. Organizations with high fixed pays for their employees maintained a vibrant workforce compared to their peers. The study also reinforced the importance of fixed pays to employee performance by showing that, other compensation benefits are less likely affected employee motivation. Therefore, it is true that compensation packages affect employee motivation in organizations and, consequently improves or lowers organizational efficiency and effectiveness. To that end, the executives and human resource management should focus on compensation packages to maintain an enthused labor force. Besides influencing employee motivation compensation packages affect job satisfaction in organizations. In a study conducted by (Igalens & Roussel, 1999), the author found that compensation packages affect employee job satisfaction. Job satisfaction refers to employee happiness of their job as a whole or individual element of their jobs. According to the study, employees feel contented when there is perceived internal and external equity for their fixed pays (Igalens & Roussel, 1999) while they feel less satisfied if their peers in other companies receive far better-fixed pay than theirs for the same work done. Also, internal equity in compensation packages is a strong determinant of job satisfaction. (Igalens & Roussel, 1999) found that organizations contributed to employee job satisfaction if each worker received compensation packages based on the amount of work done. On the contrary, employees were less likely satisfied with their jobs if they received payments that were not proportionate to the amount of work they did. A further investigation into the relationship between job satisfaction and compensation packages by (Ghazanfar et al., 2011) showed a positive correlation between the two variables. Employees were more satisfied in organizations that offered better-fixed pays than those that offered less employee compensation. Also, evidence backing the role of compensation packages on job satisfaction is found in the study by (Igalens & Roussel, 1999) showing a positive relationship between compensation packages and employee motivation. In workplaces, only motivated employees experience job satisfaction. Since lower fixed pays demotivate workers, it is true to conclude that, they cause job satisfaction. Thus, the findings support the thesis that compensation packages affect job satisfaction. Body II: Logical Supporting Ideas Continued Moreover, compensation packages affect employee retention. Retention is the ability of organizations to keep the most desirable talent for a long period (Prince et al., 2016). The study aimed to investigate the relationship between compensation packages and employee retention and job satisfaction and employee compensation packages. The study consisted of 71 employees and data collection was done through the use of questionnaires (Prince et al., 2016). The data analysis results showed that there was a positive association between employee compensation and retention rates. Employees receiving high compensation packages and rewards at their workplace more likely served their organizations for many years than those receiving lower compensation packages (Prince et al., 2016). The reason for high turnover rates is attributed to the existing internal competition where rival organizations compete to acquire the best talents. Different governments lose their best employees to private organizations because they offer the best pays. Further results in the study showed that compensation packages were related to job satisfaction. The association between the two variables indicates that compensation packages affect job retention. Workers may only serve their companies for long if they are satisfied with their jobs; otherwise, they seek alternative employers with better compensation schemes. The study by (Prince et al., 2016) proves the hypothesis that compensation is the essential tool to maintain a vibrant and motivated workforce. Since there is a close relationship between compensation packages, employee satisfaction, retention, and motivation, the human resource must direct effort to the compensation packages. Holding to the best talent in organizations is possible with the best compensation strategies. Hence, the human resource departments need to adopt strategic approaches when offering compensation packages to their employees to ensure the workforce remains intact. Lastly, compensation packages are critical to organizations and human resource management teams because they affect employee workplace performance. A study by (Igalens & Roussel, 1999) showed that compensation packages affect employee motivation and job satisfaction. A disgruntled workforce is less productive thereby affecting the overall employee and organizational performance. Another study by (Prince et al., 2016) showed that there exists an association between compensation packages, retention, and job satisfaction. Higher compensation packages lead to better employee retention. When organizations hold to the best talent, performance improves because of the advantage of experience over the years. Also, retaining the best workers enhances production as the company reaps from their skills. On the contrary, high and constant turn-over rates minimize employee and overall performance because the company continuously loses its talents limiting operational fluidity. A further study by (Ghazanfar et al., 2011) showed a relationship between compensation package, job satisfaction, and employees. Since the key factors to performance are job satisfaction and motivation, compensation packages impact individual productivity. (Groysberg et al., 2021) showed that the factor driving performance is employee packages. Companies with high fixed pays for their employees enjoyed high productivity than organizations with lower fixed pays for their employees because the employees had the impetus to fight for their organizations. Moreover, a motivated workforce creates a friendly workplace environment for all individuals to succeed. Since compensation packages affect employee performance, it is the most critical element in human resource management. Opposing Viewpoints and Why They Are Wrong One of the opposing arguments against the role of compensation packages is that they promote unnecessary external competition raising operational costs. When one company provides better compensation packages, it will attract the best talents from other companies. To retain their best employees, companies raise their fixed pays and end up operating at very high costs (Ghazanfar et al., 2011). One of the modern tools organizations use to outdo rivals is employee benefits, bonuses, and fixed pays (Igalens & Roussel, 1999). Consequently, many companies struggle with meeting the employee compensation packages to create, maintain and sustain a determined workforce. In their study, (Ghazanfar et al., 2011) found that packages shape satisfaction and motivation within employees. Since competition focused on pay and employee benefits raises the operational cost, managers should turn to other alternative strategies such as democratic leadership that allow teams to grow, remain motivated, and be contented with their work using limited resources (Fiaz et al., 2017). In their study, (Fiaz et al., 2017) confirmed that the nature of leadership style affected employee motivation and satisfaction, with democratic and Laisser-Faire leadership cultivating an encouraged workforce. On the other hand, autocratic leadership resulted in a demotivated workforce. Their views are wrong because, in their investigation, the authors did not study how different leadership styles integrate compensation packages within their organizations. The fact that most organizations use compensation packages to hook best talents rather than leadership methods means that packages have an upper hand in influencing human resources. Also, the views by (Fiaz et al., 2017) are incorrect because employees will not work in an environment where they do not receive compensations proportional to their output. Therefore, organizations with better pay attract such employees leading to higher turnover rates. Another argument against the influence of compensation packages in organizations is that they promote internal disparities among the workforce thereby creating rifts. Supporters of the argument believe that, since compensation packages are unequally distributed in most organizations, companies ought to use other alternatives to promote employee motivation, job satisfaction, and retention. From their perspectives, organizations need to pay employees an equal amount of fixed pays as a way of ensuring equality. The opposition exists despite (Ghazanfar et al., 2011; Prince et al., 2016, Igalens & Roussel, 2011) showed that compensation affects all the elements of satisfaction, retention, and motivation. Further studies have shown that employees are demotivated if there is no internal equity in the compensation packages and that influences employee morale, satisfaction, performance, and productivity. The internal disparity perception is flawed for many reasons. First, organizations compensate employees equitably based on the roles and duties assigned to them. Employees undertaking demanding and technical roles receive higher fixed pays compared to those performing lesser roles because of the effort they direct towards accomplishing their tasks. Therefore, it would be unfair to compensate employees equally while their duties are different. Second, other strategies perceived as motivating and leading to job satisfaction do not guarantee unfairness elimination in organizations. An example of an alternative approach to maintain a motivated, satisfied and productive workforce is training them. Most employees would welcome an opportunity to grow their skills. Though training is relevant in bolstering employee satisfaction and motivation, different personnel receive different training based on their roles. Thus, compensation packages stand as the only viable and most crucial tool in strategic human resource management because other alternatives have weaknesses too. Conclusion References Fiaz, M., Su, Q., Amir, I., & Saqib, A. (2017). Leadership styles and employees’ motivation: Perspective from an emerging economy. The Journal of Developing Areas, 51(4), 143–156. https://doi.org/10.1353/jda.2017.0093 Ghazanfar , F., Chuanmin , S., Khan, M. M., & Bashir, M. (2011, January). A Study of Relationship between Satisfaction with Compensation and Work Motivation. International Journal of Business and Social Science . Retrieved September 12, 2021, from https://www.researchgate.net/profile/Faheem-Ghazanfar/publication/228752899_A_Study_of_Relationship_between_Satisfaction_with_Compensation_and_Work_Motivation/links/556c8ad508aeccd7773be3fd/A-Study-of-Relationship-between-Satisfaction-with-Compensation-and-Work-Motivation.pdf. Groysberg, B., Abbott, S., Marino, M. R., & Aksoy, M. (2021). Compensation Packages That Actually Drive Performance. Harvard Business Review, 99(1), 102–111. Igalens, J., & Roussel, P. (1999). A study of the relationships between compensation package, work motivation and job satisfaction. Journal of Organizational Behavior, 20(7), 1003. https://doi-org.mylibrary.wilmu.edu/10.1002/(SICI)1099-1379(199912)20:7<1003::AID-JOB941>3.0.CO;2-K Michael, B., Prince, A. F., & Chacko, A. (2016). Impact of Compensation Package on Employee Retention. CLEAR International Journal of Research in Commerce & Management, 7(10), 36–40.