RELATIONSHIP BETWEEN COMPENSATION PRACTICE AND EMPLOYEE PERFORMANCE WITH EMPLOYEE WELL-BEING AND WORKSPACE SPORTS PARTICIPATION AS MEDIATOR: A THEORETICAL FRAMEWORK

Abstract

Orientation: Compensation practices in the contemporary organizations have ceased to be merely applied as monetary compensations but have been turned into strategic instruments that have impacted on the psychological and behavioral outcomes of employees. Anything that promotes engagement and performance found by increasing the sports participation of employees in the workplace as well as employee well-being proves to be a very crucial factor.

Research purpose: The research purpose is based on the investigation of the connection between compensation practices and employee performance with the fact that employee well-being and participation in sports in the workplace serve as the factor of mediating variables.

Motivation for the study: Despite the fact in previous studies the importance of HR practices in determining the results of employees, there is no empirical evidence as to how compensation affects employee performance as part of both well-being as well as involvement in sports in the workplace especially within the Indian context.

Research design: The study is based on an explanatory as well as descriptive research design which uses primary data collected through the use of a structured questionnaire on 250 employees in the Delhi NCR region. Analysis is done using Structural Equation Modelling (SEM) using SmartPLS.

Main findings: The findings reveal that the practices surrounding compensation contribute largely to employee well-being and sports participation at work which in turn has a positive impact on the employee performance. The mediation analysis ascertains that the linkage in compensation practices and performance is partially mediated by these variables, and satisfactory levels of model fit are attained.

Contribution: The study contributes to the literature in the field of HRM, as it demonstrates the duality of the mediating role of well-being and sports participation and provides valuable insights into the development of holistic compensation systems in accordance with organizational performance and Sustainable Development Goals.