The Influence of the Types of Compensation (Financial and Non-Financial) on Job Performance Among Employees at the Employees’ Provident Fund (EPF) in Kuala Terengganu, Terengganu, Malaysia

Global Journal of Business and Social Science Review Vol. 4(1) 2016. 24-30

7 Pages Posted: 25 Jul 2017 Last revised: 29 Jul 2017

See all articles by Mas Anom Abdul Rashid

Mas Anom Abdul Rashid

Kolej Poly-Tech Mara

M. N. Azman Othman

Kolej Poly-Tech Mara

Mohd Zainudin Othman

Universiti Utara Malaysia

Nurul Fatini

Universiti Teknologi MARA (UiTM)

Date Written: January 22, 2015

Abstract

Objective – This study looks at the effect of types of compensation on job performance. It was an exploratory case study conducted at the Employees Provident Fund (EPF) of Kuala Terengganu, Terengganu, Malaysia.

Methodology/Technique – Quantitative method was applied in conducting this research. The instrument used for the data collection was a set of questionnaire consisted of 29 items divided into four (4) sections, namely; Section A covering the demographic section with six (6) items Section B consisted of eight (8) items measuring the effect of financial compensation (items 7 – 14) while section C measured the employees’ non-financial compensation. Section C had 10 items (items 15 – 24) and lastly, section D consisted of five (5) items (items 25-29) which measured the job performance.

The questionnaire was distributed to all 50 employees at the organization. However, only 40 questionnaires were then collected, making the return rate at 80%. Since the number of respondents were less than 100, only SPSS based tests were conducted, namely the descriptive, reliability and regression tests.

Findings – The results show that the employees were satisfied with the compensation provided by their employer and that there is a moderate relationship between the types of compensation with employees’ job performance. It was also found that non-financial compensation has demonstrated a stronger relationship to the job performance compared to financial.

Novelty – In contrary to prior studies the study found out that financial compensation does not affect the job performance.

Type of Paper: Empirical.

Keywords: Employees of EPF; compensation; job performance

JEL Classification: J20, J28, J69

Suggested Citation

Abdul Rashid, Mas Anom and Othman, Mohd Noor Azman and Othman, Mohd Zainudin and Fatini, Nurul, The Influence of the Types of Compensation (Financial and Non-Financial) on Job Performance Among Employees at the Employees’ Provident Fund (EPF) in Kuala Terengganu, Terengganu, Malaysia (January 22, 2015). Global Journal of Business and Social Science Review Vol. 4(1) 2016. 24-30. Available at SSRN: https://ssrn.com/abstract=3002256

Mas Anom Abdul Rashid (Contact Author)

Kolej Poly-Tech Mara ( email )

Level 4 & 5, Jalan 7/91, Taman Shamelin Perkasa
Cheras
Kuala Lumpur, 56100
Malaysia

Mohd Noor Azman Othman

Kolej Poly-Tech Mara ( email )

Level 4 & 5, Jalan 7/91, Taman Shamelin Perkasa
Cheras
Kuala Lumpur, 56100
Malaysia

Mohd Zainudin Othman

Universiti Utara Malaysia ( email )

Sintok
COLGIS, UUM
Sintok, KY KEDAH DARUL 06010
Malaysia

Nurul Fatini

Universiti Teknologi MARA (UiTM) ( email )

40450 Shah Alam
Johor
Dungun, Selangor 23000
Malaysia

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