Abstract
This study covers the various forms of direct compensation—i.e. employee’s pay, short and long term incentives, organizational performance awards etc. It also deals with indirect compensation such as paid leave, insurance, retirement income and various employee benefits. Present study was conducted in the selected five old and five new public sector universities of Punjab, Pakistan. The main objectives of the study was to analyze the old and new universities teachers’ opinions on compensation and employee benefits and to investigate about the planning of universities to make incentive system more attractive. Research indicated that compensation and employee benefits motivate teachers to show good performance and productivity of the teachers increases by linking compensation to performance.
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