INFLUENCE OF MERIT-BASED PAY ON EMPLOYEES’ SATISFACTION OF SALES COMPANY IN QUEZON CITY

Abstract

Employee satisfaction refers to the level of contentment employees feel regarding various aspects of their job, such as compensation, career growth opportunities, and overall work environment. It plays a vital role in an organization's success, as satisfied employees are more likely to remain with the company, be engaged, and contribute positively to its goals. One effective way to enhance employee satisfaction is by offering competitive salaries and benefits, including merit-based pay. This strategy motivates employees, rewards their performance, and ultimately boosts productivity, helping to create a more positive and efficient workplace. The researcher utilized a quantitative descriptive correlational research design and sampling technique to examine the impact of merit-based pay on employee satisfaction in sales companies in Quezon City. The study focused on thirty (30) regular employees who received merit-based pay within the sales department. Data were collected using a survey questionnaire, which was divided into three (3) sections, designed to assess employee satisfaction, the effects of merit-based pay, and other factors that may influence job satisfaction. The results of the study show that employees at Philteq Enterprise Inc. are generally “satisfied,” as indicated by the following mean scores: employee commitment (3.10), employee productivity (3.18), employee retention (3.12), career growth (3.23), motivation (3.22), and work environment (3.27). Overall, the mean scores suggest that employees “agree” with the indicators presented, highlighting a positive level of satisfaction across the various aspects of their work experience. Based on the overall results, it is evident that there are areas in the merit-based pay system that need further consideration, particularly in how it rewards employees for their contributions. The researcher has put forward several non-mandatory recommendations to address these areas. First, the company could consider conducting periodic performance reviews and assessments to ensure accurate appraisals and alignment with the company’s values and goals. Second, updating the reward system to keep pace with current trends could help retain employees and improve their satisfaction. Additionally, holding regular meetings where employees receive constructive feedback on their performance and compensation could lead to higher morale and a more positive work environment. Lastly, the researcher recommends creating an improvement plan based on the lowest results from the study to address areas needing attention. This plan could serve as a strategic tool to enhance employee satisfaction and contribute to the company's long-term success.