Effects of the Compensation System and Socio-demographic Factors on the Attitudes of Employees in the Republic of Serbia

Abstract

Research Question: What are the effects of employees’ reward system and socio-demographic factors on the attitudes of employees (job satisfaction, engagement and organizational commitment of employees) in the Republic of Serbia? Motivation: Due to the increasing globalization and the emergence of crises that directly impact the compensation system in the Republic of Serbia, the authors conducted research on this topic to determine the current situation, and to investigate the effects on employees’ attitudes. Idea: The idea for the research was created due to a relatively small number of research dealing with this topic in Serbia, but also in the world literature. Data: The research was conducted in the period from March to July 2022 on a sample of 764 employees from various companies in the Republic of Serbia. Data collection is performed via an electronic questionnaire Google Forms, where respondents had the opportunity to answer the questions posed in the questionnaire at any time through their electronic devices. Tools: Data analysis was performed using reliability statistics (observation value of Cronbach's Alpha Based on Standardized Items) and multiple regression analysis between predictors: (constant), compensation system and socio-demographic indicators (education, age, and gender) according to three dependent variables related to employee attitudes (job satisfaction, engagement, and organizational commitment). Data processing was conducted using IBM SPSS Statistics 26. Findings: The results indicate that there is a positive statistically significant relationship between age, level of education, and compensation system with job satisfaction. In the case of employee engagement, only the compensation system indicated a positive and statistically significant relationship, while socio-demographic factors do not have a statistically predictive effect. In the case of organizational commitment as a dependent variable, level of education, and compensation system are statistically significantly related to organizational commitment. Contribution: This scientific research expands the existing research on the effects of the compensation system and socio-demographic factors on employees’ attitudes in the Republic of Serbia.