Abstract
This study aimed to validate the impact of compensation on employees’ performance in freight forwarding companies based in Karachi. A sample of 65 respondents was obtained using unrestricted non-probability convenience sampling technique. Adjusted R-square (57%) and R-square (57.7%) are very close, indicating no sampling error. The instrument has been adapted and consists of a 5-point Likert scale. The variables were found reliable (Cronbach’s Alpha > 0.7). The results suggest that there is a positive and significant association between both the variables (r = 0.795, p<0.01), and Compensation has 57.7% explanatory power (F = 85.79, p<.01), which is highly significant. Moreover, regression result also suggests that Compensation has a positive significant impact on Employees’ Performance. It is recommended that organisations take care of compensation as it is a vital factor that motivates employees to perform.
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