Impact of Fringe benefits on Job Satisfaction and Devotion

Keywords: Job satisfaction, pay, Health insurance. Employer behavior. Commitment .employee
turnover

Introduction:

Job satisfaction not entirely depends on pay other many factors play imperative role in job
satisfaction,while pay includes direct payments, salaries, bonuses and commissions, on the other
hand rewards include indirect payments or fringe benefits such as health insurance, recognition
and transport allowances, pension, working hours. Harald Dale-Olsen (2006) study shows that
employees who were compensated show positive behavior and commitment which reduces the
employee turnover.

Previous studies showed importance of fringe importance like Harald Dale-Olsen (2006)
findings showed that organizations offering higher payments or fringe benefits experience
reduction in worker turnover rates similarly workers showed preferences for fringe benefits.
Mahmood and Qasim (2014) research analysis mentioned that rewarding employees with fringe
benefits will result into high productivity and low turnover.

Few previous studies of Ehsan Malik et al(2012) and Salman Khalid(2010), was conducted in
higher education and banking sectors of Punjab, further research can be conducted in Islamabad.
Research conducted by Rizwan (2010) and Danish (2010) find out how employer can help in
improving both productivity and employment in the economy butresearch data wascollected
from middle and top line managers.

Furthermore, Ali Ghazali et al (2007) premeditated job satisfaction among doctors working at
teaching hospital of Bahawalpur,Pakistan but research can be improved by finding out the
disparities between provinces and study factors such as job stress, workload, patient satisfaction
and how proper service structure can lead to job satisfaction.

Possible gaps in previous studies should be eliminated in this study by collecting data sample
from private banks and universities of Islamabad, because a large number of workers work in
Islamabad in different sectors and many workers come to work from regions of Pakistan so they
also require fringe benefits like vacations, accommodations and travel allowances. Similarly in
this study data needs to be collected from low level employees because low line employees play
vital role in organization and economy.

Furthermore, performances can be improved by improving job structures of organizations like in

case of doctors proper work environment, according to work load salaries should be given which
can keep them committed to job and reduce strikes which are very common in Pakistan culture.

The research objective is to check the effect of fringe benefits on organizational commitment of
employees and get to know the attitude of Pakistani employees whether they like to get rewarded
by their organization and in return they show their commitment. On the other hand after
identifying and measuring the determinants of job satisfaction employer can also use it manage
workers performances and decrease worker turnover rate achieving their desire labor supply
which will be beneficial for organizations and economy.