Role of Compensation Management in Balancing the Employees relationship in Retail Industry in India

:: Compensation, in layman's terms, refers to something provided or obtained as payment or reparation, such as property, for a service or loss. The word Reward, on the other hand, refers to something offered or earned as a reward for good behaviour or as a form of retaliation for bad behaviour. In this context, the current paper focuses on wage management as a means of balancing employee relationships. The study is conducted by taking 199 employees of selected retail industry. The data has been collected by administering a structured questionnaire and analysis is done using regression analysis


Introduction:
Cash is included in direct compensation (also known as basic salary or wage, i.e. gross pay) that the employee is entitled to for his employment, overtime-work and holiday premiums, performance incentives, benefit sharing, and preferred stock benefits.Although benefits are classified as indirect compensation, they can include life, injury, and health insurance, as well as the employer's commitment to retirement (pensions), pay for vacation or sickness, and the employer's mandatory payments for employee welfare, such as social security.According to French, the word "incentive scheme" has a narrow definition that excludes a wide range of incentives given to people to perform.

2.Relevant Studies
In their research, Tripathi and Solanki (2020) found that managers are optimistic and feel like they are running their own business, resulting in them working toward the organization's goals.In his report, Mahajan (2020) looked at how fear was generated in the Indian FMCG sector recently as a result of the pandemic Covid-19, as well as how pay structures were influenced by the negative effects of Covid-19.In their research, Karanth et al (2018) discovered that wage management is a scientific technique for determining funds for a specific task conducted by workers in an organisation.In their research, Khalid and Nawab (2018) compared compensation management systems in six industries and discovered that compensation management differs by sector, and in some industries, compensation management differs by work type.Santhanam et al. (2017) performed a study with a sample size of 294, using multiple regression analysis, and discovered that compensation patterns are correlated with employee turnover intentions.

3.Statement of the problem
Employee retention has become a problem for today's businesses.People are switching between organisations because of the abundance of resources and competitive wages.When employees are retained, the company becomes more productive.Compensation management has long been regarded as a crucial mechanism for ensuring worker satisfaction and employee retention.Employee perceptions and expectations of compensation administration have been critical to Retail Industry Foods Limited's long-term viability.

Objectives of the research
➢ To investigate various aspects of employee benefits management in the retail industry.➢ To describe the challenges that employees in the retail industry face.

Research Methodology
It's a casual study with a convenient sample size.The sample size for this study is 199 people, who were chosen from various shifts and divisions of the retail industry.Employees took part in the survey and gave their feedback on a scale of one to five stars.The data was analysed using software such as SPSS, R, and Ms-Excel.
Data was analysed using both qualitative and quantitative approaches.The things for each variable were taken from previously published articles.The products are tested for reliability for each variable.The table from the exploratory factor study can be found in the annexure of this research report.All of the variables have a Cronbach's alpha of greater than 0.70, indicating that the scale is accurate.The relationship between the dependent and independent variables was tested using multiple regression tests.Valid N (list-wise) 199 Based on the mean score, the employee retention (5.03) is the most important factor on compensation management followed by job satisfaction (5.02), followed by performance appraisal (4.94) followed by salary (4.72), followed by employee benefits (4.56) and the least factor is taking leave benefits.

Testing of Hypothesis Regression Analysis -Hypothesis Testing
H1: There is an impact of compensation package on job satisfaction of employees at Retail industry Result: Hypothesis H1 is rejected based on significant value for compensation in the below regression analysis table.The p-value for compensation is 0.115 which is above 0.05.Hence, there is no significant correlation between compensation package and job satisfaction at Retail industry.There is significant relationship between salary and job satisfaction at Retail industry.Result: P-value for the variables salary is 0.038 in the above regression analysis table.Hence, hypothesis H2 is accepted which means there is positive impact of salary on job satisfaction and beta value is 0.190.H3: Employee benefits at Retail industry have an impact on job satisfaction at Retail industry.Result: Hypothesis H3 is accepted because p-value for employees benefits in above table is 0.00 which is less than 0.05 (benchmark value).Hence, employee benefits have positive impact on job satisfaction at Retail industry Company.In previous research works also, there is evidence that employee benefits always lead to job satisfaction and the result of H3 is in line with those results.Result: Since P value is less than 0.01, null hypothesis is rejected at 1% level with regard to factors of compensation, job satisfaction and employee retention.Hence, there is a significant difference between age group of employee with regard to compensation, job satisfaction and employee retention

7.Findings
➢ At a company in the retail sector, compensation administration is flawlessly applied.➢ In the FMCG organised retailing market, employees at Retail Industry Company are paid competitively.➢ Employees in the retail sector have a higher than average degree of job satisfaction.➢ Employee benefits have a positive impact on employee engagement in the retail sector.➢ Based on feedback from internet websites, employee reviews are both positive and negative about the work climate.➢ Overall, workers are enthusiastic about working for the Retail industry Business.➢ Married and unmarried employees are giving preference for flexible work timings.➢ The majority of workers are recent graduates who expect flexible compensation programmes.➢ Many workers of less experience anticipate traditional pay policies.➢ Experienced workers in the retail sector are looking for a benefits plan that is tailored to their needs.➢ Employee benefits encourage workers to stick with their companies.➢ Employees in the retail sector have a high degree of job satisfaction, which has little to do with the company's pay plan.➢ Employees in the retail sector benefit from a learning atmosphere and a positive work environment.

Suggestions
➢ Now is the time to introduce the pay-for-performance approach in the retail industry.
➢ Employees must receive instruction in order to support customers in shops.
➢ Employee benefits must be raised and operating expenses must be reduced.➢ Job rotation among employees at the same level should be done.. ➢ Currently, the organisational structure should be redesigned so that the majority of staff interact with regular clients and deliver to their homes.➢ Covid-19 must be taken into account in order for hygiene and social distance to be introduced in the shops.➢ The stores must be relocated from prime locations to other locations in order to minimise rental costs and expand shelf space.➢ It is now important for the organisation to provide communication skills training to all departments' employees.➢ Employee benefits must be tailored, but limits must be adhered to in accordance with corporate policy.➢ Advertisements should be given so that customer flow is increased at the stores.

9.Conclusion
In human resource management, compensation is a crucial component.Compensation policy is critical to an organization's growth.With more employment openings in the retail sector, consumers' priorities have shifted.For well-organized retail stores, employee retention is now more critical.Employees reflect the company's community and assist consumers in making the best product choices.As a result, now is the time for the retail industry to rethink compensation policies in light of the changing market climate.
In the retail market, employees would be a strategic advantage.The retail industry promotes a variety of branded goods to consumers.The success of the retail industry is inextricably linked to the output of its employees.Employee satisfaction is critical because employee recruitment is more expensive than employee retention.The level of job satisfaction can also be used to gauge an organization's brand reputation.For wellorganized retail stores, leadership is more critical.From the viewpoint of compensation administration, the retail business company had been active in introducing world-class human resource management practises.