The relationship between compensation system, job satisfaction, and employee performance at recruitment agency

The main purpose of this research is to examine the relationship between financial and non-financial compensation on employees’ performance through job satisfaction at Recruitment agency. Performance-enhancing compensation practices aim to highlight performance discrepancies and increase productivity. Employees are essential for monitoring and managing operations, and their positive traits are crucial for a company's success. The majority of an organization's resources are used to improve employee performance, highlighting the importance of utilizing unique potential and skills for organizational goals. The survey questionnaire was used to take a representative sample of employees from the recruitment agency and ensure the sample represented the whole population. A total of 220 questionnaires were distributed to the employees from Recruitment agencies. There are 200 questionnaires that were answered by the respondent, yielding a response rate of 90.91%. Data were gathered through questionnaires and was analyzed by using Statistical Package for Social Science (SPSS) version 25. The results indicated there is a positive correlation between non-financial compensation and financial compensation to employee performance. On the other end, job satisfaction became more important in determining job performance of employees from the study. Thus, it is crucial for the organization to put a great emphasis on the significant roles played by financial compensation and financial compensation to increased employee’s performance at Recruitment agency.