Management at modern-day academic institutions requires special endeavours to acquire and retain highly skilled employees to operate effectively in an extremely competitive environment.
Obviously, the level of of these individual employees will impact significantly on performance at these institutions.
An employee remuneration package includes guaranteed employment benefits such as retirement benefits, medical aid benefits, life and disability insurance, housing benefits, car allowance or cell phone allowance elaborated that fringe benefits can also included prerequisite perks such as relocation payments, flexible start dates, sign-on bonuses, use of company-owned property, health club membership, tuition reimbursement, financial planning and clothing allowances. First of all, since fringe benefits are generally less taxed than wages, they can be purchased at less cost through an employer than if bought on the market.
Artz reported a significant positive estimates for variables as paid vacation and sick pay but no significance for any of the remaining benefits: Child care, pension, profit sharing, employer provided training/education and health insurance. Second, fringe benefits are often desirable pieces of compensation packages and so increase .
Greenberg and Baron also reinforces these views who further stated that remuneration helps and supports individuals to meet the basic needs through pay and salary as explained in Maslows law. 9th Edn., Pearson Education Inc., Upper Saddle River, New Jersey.. The relationship between job satisfaction and organisational commitment amongst academic employees in agricultural colleges in South Africa.
Moreover, remuneration is considered to be one of the extrinsic factors (hygiene) as per Herzberg theory, in which leads to dissatisfaction if absent and does not achieve the satisfaction of an academic staff in higher education institution when it exist. stated that benefits include packages an employer practices to supplement the cash compensation that employees receive. Master's Thesis, University of the Western Cape, Cape Town. Background and Objective: Human capital is the pivotal of organisational effectiveness and the most valuable asset available to an organisation is its people. Retaining employees in their jobs is crucial for any organisational productivity and competitiveness. An explanatory hypothesis generating approach was employed and a survey design was used to collect data through a semi-structured questionnaire. A sample of 279 academic staff, which was the total population of participants were selected for this study. Fringe benefits include any variety of programmes that provide paid time off, employee services and protection programmes. According to Bratton and Gold, fringe benefits refer to the part of the rewards package provided to an employee in addition to the guaranteed basic remuneration. Numerous researchers forecast that talent shortages are going to increase well into the next decade, which will limit the ability of organisations to expand and will jeopardize their chances of survival as global competition becomes more intense also revealed that compensation as part of employee rewards are gaining popularity day by day and higher education institutions should use compensation to satisfy and retain their highly qualified academic staff. In light of these studies, this study seeks to find the correlation between compensation, benefits and stated that compensation as financial and non-financial extrinsic rewards provided by an employer for the time, skills and efforts made available by the employee in fulfilling job requirements aimed at achieving organisational objectives. regarded compensation as important for employees since it is one of the main reasons people work. It is evident that compensation and fringe benefits have a significant relationship from organisational level, the literature is inaudible about higher education institutions. Therefore, the current study seeks to fill that gap.