A comparative study to determine the impact of fringe benefits on job satisfaction and engagement

Abstract

The study addresses the impact that fringe benefits have on the levels of job satisfaction and engagement of the employees of Orica Mining Services. Orica is a global explosives company that serves the mining and construction industries all over the world. The remuneration of employees differs from country to country within the organization and this can lead to confrontations when employees compare remuneration packages amongst one another. To determine the appropriate compensation for the value of the work becomes even more difficult when dealing with a global organization. This matter becomes even more complicated when an organisation's boundaries stretch across country borders. The study aims to compare job satisfaction and engagement of Orica employees working in South Africa to those working in Ghana. A survey research design was used with a specifically developed questionnaire as the data gathering instrument. The participants represent the total of all employees of Orica, a global mining services company. Management supported the study and made participation compulsory. A total of 57 employees completed the questionnaires. Employees from different areas, gender, age, academic levels and income groups participated. The majority of the respondents were in the age group 36 - 40 (28.1%). Educational levels revealed that the majority (68.4%) of participants have a Grade 12 and/or higher qualification. Because all the questionnaires represented the population and not just a sample, only a test to determine practical correlation was performed. For the purpose of the correlation test, the Nonparametric Spearman's correlation coefficient (r) was used. The statistical analysis indicated a highly important correlation between Job Satisfaction and Engagement. Thus a high level of job satisfaction will imply a high level of engagement and vice versa. It has also indicated that Job Satisfaction and Fringe Benefits shows a low practically significant correlation. The test for correlation between Job Satisfaction and Remuneration indicated that the level of job satisfaction an employee experiences in the organisation is influenced by his remuneration package. The test for correlation between Engagement and Fringe Benefits shows a low practically significant correlation. The test for correlation between Engagement and Remuneration shows a low practically significant correlation. The limitations of the study were the limited number of employees in Orica South Africa and Orica Ghana for participation in this comparative study. The structure of remuneration packages is treated as confidential and therefore employees might be hesitant to answer questions regarding fringe benefits and remuneration. The study was conducted within Orica and therefore its outcome can only be released with the permission of Orica South Africa and Orica Ghana.