Effect of Fringe Benefits and Remuneration on Employee Performance: The Mediating Role of Employee Engagement.

Abstract

Purpose of the study - This study assessed the effect of fringe benefits and remuneration on employee performance and explored the mediating role of employee engagement. Methodology- The study employed a quantitative approach to data collection and analysis. Data was collected through a structured questionnaire distributed among 270 employees from Asanduff Construction Limited- Accra, Ghana. The analysis was conducted using Partial Least Square Structural Equation Modelling. Findings- The study revealed that fringe benefits and remuneration did not affect employee job performance. With the mediation analysis, the analysis showed that employee engagement mediated the relationship between remuneration and employee performance as well as fringe benefits and employee performance. Limitations- First, the study’s limitation has to do with its geographical coverage. The study was also limited to the working staff of Asanduff Construction Limited with an estimated sample size of 278 which could be relatively small. Again, through questionnaires being used as the main instrument, the study responses might be without honesty and accuracy. Thus, the study results might be affected by bias which will limit the generalizability. Practical implications- The results of this study will contribute to human resource managers' efforts in putting plans in place to improve the operations of their companies. Line managers should therefore make every effort to ensure that their staff members are motivated by the work they do to increase productivity, as this study also discovered a link between employee engagement and performance. Strategically, leadership and management of organizations will be based on the findings of this study and plan important workshops, seminars, symposiums, conferences, etc. with a major focus on providing employees with proper fringe benefits at the workplace to ensure that they increase productivity at the workplace. Originality/value- The study contributes to the literature by assessing the effect of fringe benefits and remuneration on employee performance and exploring the mediating role of employee engagement.

Keywords

• fringe benefits
• remuneration
• employee performance
• employee engagement