The Influence of the Types of Compensation (Financial and Non-Financial) on Job Performance among Employees at the Employees’ Provident Fund (EPF) in Kuala Terengganu, Terengganu, Malaysia

Objective – This study looks at the effect of types of compensation on job performance. It was an exploratory case study conducted at the Employees Provident Fund (EPF) of Kuala Terengganu, Terengganu, Malaysia. Methodology/Technique – Quantitative method was applied in conducting this research. The instrument used for the data collection was a set of questionnaire consisted of 29 items divided into four (4) sections, namely; Section A covering the demographic section with six (6) items Section B consisted of eight (8) items measuring the effect of financial compensation (items 7 – 14) while section C measured the employees' non-financial compensation. Section C had 10 items (items 15 – 24) and lastly, section D consisted of five (5) items (items 25-29) which measured the job performance. The questionnaire was distributed to all 50 employees at the organization. However, only 40 questionnaires were then collected, making the return rate at 80%. Since the number of respondents were less than 100, only SPSS based tests were conducted, namely the descriptive, reliability and regression tests. Findings – The results show that the employees were satisfied with the compensation provided by their employer and that there is a moderate relationship between the types of compensation with employees' job performance. It was also found that non-financial compensation has demonstrated a stronger relationship to the job performance compared to financial. Novelty –In contrary to prior studies the study found out that financial compensation does not affect the job performance. Type of Paper: Empirical