Abstract
The purpose of the study is to examine the impact of total compensation on pay satisfaction of employees in Telenor Pakistan. Data was collected through questionnaire and interview. It is revealed that fixed pay components such as merit increments are prominent unlike seniority bonuses in Telenor because of the fact that the company has a flexible pay structure of broadband. Broadband offer flexibility and easy salary progression as employees is not promoted to another grade but moved within band (in-grade promotion). Among the variable pay dimensions, goal based pay, accurate information use related to salary decisions, employee rights concern and information sharing regarding employee related decisions are much satisfactory at Telenor compared to other components of variable pay. In case of benefits, employees were highly satisfied with allowances, welfare programs and consider it reason for their motivation and stay in Telenor. Overall, equity in Telenor is nearly in balance and pay satisfaction over various components of total compensation has an nutshell positive effect in creating strong sense of belonging of employee with their organization.
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