COMPENSATION STRUCTURE AND EMPLOYEE MOTIVATION: INVESTIGATING THE MODERATING IMPACT OF JOB LEVEL HIERARCHIES

Abstract

This study investigates the relationship between compensation structure and employee motivation, with a particular focus on the moderating role of job level within organizational hierarchies. Drawing on motivation theories and compensation models, the research explores how various elements of compensation—monetary rewards, benefits, and performance-based incentives—affect employee engagement, productivity, and satisfaction. The study highlights that the motivational impact of compensation strategies varies significantly across job levels, suggesting that employees in different hierarchical positions perceive and respond to compensation differently. Findings reveal that higher-level employees prioritize long-term rewards and strategic incentives, while lower-level staff may be more responsive to immediate financial compensation. This moderating effect underscores the need for organizations to adopt a differentiated compensation approach that aligns with employee expectations across various job levels. The study contributes to the broader discourse on strategic human resource management as it offers practical insights for designing equitable and effective compensation systems that enhance workforce motivation and organizational performance.