International Research Journal of Education and Technology

Employee work engagement has emerged as a key determinant of organizational performance in today's competitive business environment. This study examines how reward and compensation practices influence the level of work engagement among employees across various industries in India. A quantitative research design was adopted, with primary data collected from 190 respondents spanning the IT, manufacturing, banking, healthcare, and education sectors using a structured five-point Likert scale questionnaire.

Data were analyzed using descriptive statistics, correlation analysis, and regression analysis through Microsoft Excel and PSPP software. Results confirm a strong positive relationship between compensation and employee work engagement (r = 0.989) and a moderate positive relationship between reward systems and engagement (r = 0.585). Both hypotheses were accepted, validating that compensation and rewards significantly influence employee engagement. Compensation emerged as the more dominant factor, while non-monetary rewards such as recognition and appreciation played a meaningful supporting role. The findings align with the Social Exchange Theory and the Job Demands-Resources Model. Organizations are encouraged to design integrated reward and compensation strategies to foster sustained employee engagement.

Keywords: Employee engagement, Compensation, Reward systems, Non-monetary rewards, Work motivation, Human resource management.