Effects of Compensation Benefits on Employee Engagement for Private Family Business Schools

Abstract

The effects of compensation and benefits on employees’ engagement levels in selected private family business schools (PFBSs) in the Eastern Cape, South Africa are investigated in the study. Several pieces of literature affirmed that employee engagement levels in South African schools are low despite the crucial role played by employees in implementing the teaching and learning programs of the schools. The study is to determine the extent to which employee engagement in PFBSs is predicted by remuneration and benefits. The study employed a quantitative positivist research paradigm and a case study technique to examine the impact of pay and benefits on employee engagement levels in PFBSs. A six-step sampling model was adopted, and a probability sampling technique was utilized. Nonparametric statistical analyses were done, and the results revealed that increasing employees’ compensation and benefits is key to improving employees’ engagement levels in PFBSs. All ethical requirements, such as respondents’ anonymity, informed consent, and confidentiality, were adhered to throughout the study. The study recommended that PFBSs are encouraged to have a compensation and benefits portfolio that competes favorably well with other educational institutions locally and abroad to retain a well-engaged set of employees. The study concluded that a large-scale survey be carried out to investigate the impact of compensation and benefits to PFBSs in another country rather than South Africa to compare findings.

Keywords

• benefits
• compensation
• educators
• engagement
• private family business schools