EXECUTIVE SUMMARY

This study identifies factors that motivate employees in Pakistani organizations.

The need for study originated at a strategic Human Resource Program at PIM in 2001. In this seminar a major point of discussion was the role of Compensation as a key motivator in Pakistani organizations. It was the contention of the faculty that though compensation is important for employee motivation, it is not amongst the most crucial motivators. To support this contention data from various American research studies and reports was cited and discussed. Most of the cited research studies and reports pointed out that on an average Compensation was ranked as third or even lower as the most important motivator by employees in American organizations. Some of the participants of PIM’s program (which included CEOs and Senior Human Resource Managers) were of the view that this ranking did not apply to Pakistani organizations, where the top motivator for employees is Compensation. The ensuing discussion and debate on this issue pointed out very clearly that there was a need to find out what was the ranking of Compensation, as a motivator, in the minds of the employees of Pakistani organizations.

The study was conducted between April 2002 and January 2003, using over 500 open-ended questionnaires for identification of different motivators for employees of Pakistani organizations. Twenty-eight key motivational factors were identified. Thereafter, 1230 respondents were asked to rank their top ten motivators in their respective organizations.

Hypotheses: The first hypothesis is based on the assumption that employees of Pakistani organizations prefer Compensation as the key motivator. The second hypothesis is based on the assumption that employees in different cadres have the same set of motivators. The study disproves both hypotheses.

Demographics: The demographic characteristics included age, experience, gender, job-function and management levels. The study also presents an analysis based on organizational and business Sectors.

Results: The outcome of the study revealed that the top five motivators for employees in Pakistani organizations (in order of importance) are: Organization Image, Job Security, Compensation, Good Relationships and Team Work.