THE IMPACT OF COMPENSATION STRATEGY ON FIRMS PERFORMANCE: EVIDENCE FROM IRAQ COMPANY

Abstract

This study investigates the impact of compensation strategy on firms’ performance: evidence from Iraq Company. The study adopted a descriptive survey research design; hence, two research hypotheses guided the study. The sample size selected were one hundred and fifty (150) among the staff and management of the Iraq manufacturing company. Two instruments were formulated to gather necessary information. The study findings showed that compensation strategy had significant and positive effect on workers’ productivity where the t-statistic with the slope value of 0.783. The study further revealed that significant compensation strategy had significant effect on organizational performance where the slope value is 0.415. Based on the findings, the study recommendations were made to top management selected business units in Iraq to use compensation strategy to improve the employees’ productivity and organizational performance. Also, training and re-training of top management should be improved and organize so that they can accumulate knowledge of attracting, retaining, and encouraging employees for better-quality organizational productivity