RESEARCH PROPOSAL TITLE:
To investigate the impact of compensation strategies on overall employee’s productivity within UK’s tourism industry. A study on Easy Jet.
1. INTRODUCTION
1.1. Background and Context
Compensation refer to the act of rewarding employees for the all the services provided during period of employment (Newman, Guta and Black, 2021). This is the pivotal requirement of each organization as it aids in managing the employee’s satisfaction and support in attracting skills and competent workers. This strategies support organization in remaining competitive within industry by reducing attribution rate and motivating employees for the better performance. Easy Jet is the British multination travel and tourism organization which was established in the year of 1995. The firm also owned various hotel chains, travel agencies, cruise lines, retail shops and European airlines. The firm is operating over 17 countries with 353 hotels across the globe. Easy Jet has provided job opportunities to over 58342 employees and earns annual revenue of 20665 million pound in the year of 2023 (Description of Easy Jet, 2025). Employee’s productivity is one of the most significant factors that impact the overall customer’s satisfaction. The current proposal is based on exploring the influence of compensation strategies on employees overall productivity within UK.
1.2. Problem Statement
The current proposal is based on investigating the impact on employee’s productivity due to compensation strategies. In the current time, employees’ motivation is influenced by large number of factors which eventually impact on their overall productivity (Tamminen and Poucher, 2020). Moreover, ineffective employees’ productivity leads to influencing overall profitability and performance of organization. This creates and urgency to critically analysing the impact of compensation strategies on their productivity. Thematic analysis will be used to shed light on the compensation strategies impact on worker’s productivity.
1.3. Research Question
Q1. Which kind of compensation strategies are used by aviation industry along with its significance?
Q2. What are the various theories related to employees productivity?
Q3. What is the impact of compensation strategies on the workers’ productivity within Easy Jet?
1.4 Research Aim
The aim behind conducting current study is to explore the influences of compensation strategies on worker’s productivity within Easy Jet.
1.5. Research Objectives
· To study the concept of compensation strategies and its importance
· To analysis theoretical underpinning related to the workers’ productivity within Easy Jet
· To ascertain relation between compensation strategies and employee’s productivity within Easy Jet
· To recommend competent strategies to Easy Jet’s manager for boosting employees’ overall productivity
2.0 LITERATURE REVIEW
2.1. KEY CONCEPTS, THEORIES AND STUDIES
2.1.1. Topic 1 The concept of compensation strategies and its significance
According to the view point of Trinh and Seetaram (2022) compensation strategies implies to firm’s approach for rewarding employees in terms of benefits and pay. This is the process of appreciating workers in the form of cash or kind. There are two major types of compensation strategies that include financial and non-financial strategies. An accurate combination of both type should be offered to employees for fulfilling their financial, social and esteem needs. Akindayomi, Aktas and Amin (2020) also explicated that compensation strategies play a crucial role in hiring and retaining large number of employees within business entity. In the current time, employees generally leave organization in search of higher pay and additional benefits. In this context, all the organization that offers competent financial and non- financial benefits is able to retain employees for longer time frame. For example: Easy jet has adopted market based compensation strategy in which employees’ salary is decided on basis of competitor’s policies (Compensation strategy of Easy Jet, 2024). This helps organization in offering higher salaries and wages leading to attracting and retaining employees.
Further, Odhiambo, Wainaina and Makhamara (2024) stated that compensation strategies have huge impact on overall motivation and satisfaction level of the employees. It has determined that compensation is one of the most effective methods for appreciating employees which eventually aids in boosting their overall motivation. For example: Easy Jet has introduced policy of offering additional benefit to effective employees which aids in boosting their motivation for higher performance. This also denotes that firm is valuing their efforts and contribution leading to higher satisfaction level. Along with this, Faniran and Velayutham (2023) claimed that compensation strategies play a crucial role in enhancing overall organization’s performance. It has been identified that effective compensation policy support in boosting employee motivation and reduces their overall turnover rate which eventually leads to higher profitability. Employees that are associated with firm for longer time frame are familiar with organization’s working method and developed all the required skills and competencies which assist in enhancing overall entities’ performance.
Ilić et al, (2023) stated that compensation strategy of organization also has huge impact on overall brand reputation and goodwill. All the organization which undertake compensation strategies on the basis of cost of living are able to define its concern over employees’ financial position. Effective compensation also denotes that employees’ right are not snatched ways and firm is paying equal concentration over their improvement that result in boosting overall goodwill and reputation. Beside this, Yang (2025) stated that effective compensation strategies also play a crucial role in controlling overall cost of the business entities. A fair and structured compensation strategies help in retaining employees for longer time which reduces firm expenses for organizing training and development session for new employees leading to managing overall cost. Further, effective compensation strategy ensures that organization is not paying more or less to workers that help organization in effectively managing their overall cost.
2.1.2. Various theories related to employees’ productivity
Based on the view point of Li and Singal (2024), it has been identified that there are large number of factors that impact on overall productivity of the employees. From the Maslow’s Hierarchy theory it has been determined that there are five crucial needs which an employee’s want to fulfill for boosting its overall productivity (Maslow leadership theory, 2022). In this, organizations which are able to fulfill employee’s physiological, safety, love, esteem and self actualization needs are able to boost their motivation which ultimately results in higher productivity. In support of the findings, Tung, Tse and Chan (2021) explicated that an each employees work with the aim of fulfilling its basic needs and security need. Firm that offers effective financial benefits to employees are capable in boosting their overall motivation which eventually results in higher productivity.
Moreover, Zhang et al, (2021) claimed that Hertzberg’s two factors is another significant theory which defines factors impacting on employees’ productivity. According to theory there are two crucial factors that impact on overall productivity of employees that are hygiene factors and motivator factors. It has been determined that effective salary and wages due to motivate employees rather it only safeguard employees from creating any type of dissatisfaction. For Example; Easy Jet is involved in providing regular and effective compensation to employee’s which aids in mitigating scope of dissatisfaction and eventually impact on overall productivity.
On the other hand, Kim et al, (2021) articulated that motivator’s factors include all the additional benefits that are offered to employees. According to this, recognition is one of the crucial factors that helps in boosting worker’s motivation and eventually enhances their productivity. In the current time each employees aims at fluffing their self esteem needs which could be attained through adequate recognition. For example: Easy Jet is involved towards arranging an annual award giving event in which all the highly productive employees are rewarded whoosh aids in boosting their motivation and eventually encourage them for higher productivity. Beside this, Brien, Vidwans and Dutt (2023) confessed that growth opportunity is another motivator which impact on overall productivity of employees. It has been identified that training session is another motivator that are offered to employees. Accurate T&D session support in developing required skills and competencies of the workers which aids in boosting overall productivity.
Ritsri and Meeprom (2020) explicated that work life balance is another type of non financial incentives that impact on overall productivity of employees. In the current time, each employee aims at fulfilling their social needs along with financial needs which assist in boosting overall motivation. Organization that offer flexible working opportunity are able to manage overall work life balance of workers leading to improving their overall productivity. For example: Easy Jet has provided hybrid working facilitates to employees that aids in maintaining a balance between employee’s personal and professional life leading to boosting satisfaction. Moreover, highly satisfied employees develop sense of attachment which assists in boosting their overall productivity. On the other hand, Al-Romeedy, El-bardan and Badwy (2025) stated that McGregor’s theory X and Y is another significant theory which impact on overall motivation and satisfaction level of employees. According to this theory employees’ productivity is highly depended on the internal instinct of the workers. This theory stated that there is no external factor or strategy by which employees’ productivity could be changed.
2.1.3. Impact of compensation strategies on workers’ productivity
Arwab et al, (2023) stated that there is both positive and negative impact on firm’s compensation strategy on the overall productivity of employees. According to Maslow theory, each employee wants to attain their basic need which could be fulfilled by adequate compensation strategy. Fulfillment of basic need will motivate employees to work productivity which aids in earning higher income. On the contrary point Obinwanne and Kpaji (2022) firm that not able to offer accurate non financial incentives are unable to enhance workers’ motivation. Form the Maslow’s theory; it has determined that self esteem and social needs are another crucial requirement of each employees. Lack of adequate recognition, appreciation, rewards, working flexibility are unable to acknowledge workers’ effort leading to reducing their motivation and thereby influence overall productivity.
Moreover, Nguyen, Natoli and Divisekera (2021) claimed that compensation strategy has huge influence on overall working environment of the company which eventually impact on employee’s motivation. Organizations that offer accurate and equitable compensation are able to foster confidence and trust within workforces leading to boost morale and eventually overall productivity. For example: Easy Jet is involved towards offering compensation on the basis of employees; performances which define firm are non-biasness method for decided wages and salary. This compensation method supports in fostering sense of equality within them leading to visiting their overall productivity.
However, Knani (2022) there are various organization that offers compensation on the basis of market dynamic which ultimately impact on workers’ overall motivation and productivity. In this method, organization generally ignored skills and competences of workers and only set wages and salary on the basis of industry averages which develop dissatisfaction. It has been determined lower satisfaction reduces employee’s motivation to work harder which eventually impact on their overall productivity. Inchausti-Sintes, Pérez-Granja and Morales-Mohamed (2021) articulated that organization’s compensation strategy has huge impact on overall employee’s turnover rate. It has identified effective compensation support in retention of employees for long time period which help in enhancing overall performance. Employees working for long time are able to develop all the required skills and competencies which eventually assist in undertaking task with higher productivity. It has determined that many organization uses performance based compensation strategy and offers high growth opportunity are able to retain workers for long time leading to boosting their overall motivation.
On the critical point of view, Kloutsiniotis and Mihail (2020) explicated that many organization uses similar compensation strategy for motivating workforces which negatively impact on overall employees’ productivity. Each employee have differential financial and non financial requirement so incorporating similar strategy results in reducing their motivation which eventually impact on their overall performance. For example; Easy Jet is involved towards initiating and communication session with all the employees that assist in effectively determining their needs and requirement. This session assist organization in offering adequate benefits and wages according to employees; needs leading to managing their satisfaction level and thereby improving their overall performance. Further, Minor, McLoughlin and Carlisle (2024) articulated that the compensation strategy play a significant role in developing organization’s culture that eventually boost up their overall satisfaction level. From the past experience, employee will be well aware of activities that should be incorporated for gaining additional benefit which results in boosting overall productivity level. However, Tan and Despotis (2021) stated that organization usually changes its compensation strategy without accurate research which creates dissatisfaction among some of the existing employees.
2.3. GAP(S) IN EXISTING KNOWLEDGE
Earlier studies have been initiated for determining type of compensation strategies that should be initiated within organization. Focus has not been over arranging strategies by which firm’s financial position could be maintained (Walmsley, Koens and Milano, 2022). However, emphasis was not paid over determining its ultimate influence over productivity of workers. The current will fulfill this gap by defining various impact of compensations based on which accurate decision could be initiated.
3. RESEARCH METHODOLOGY
3.1. Research Design
Research design
Research design refers to type of strategies that are used for integrating different components for conducing study in logical and coherent manner. There are two significant method of research design that includes qualitative and quantitative research design. Qualitative research design implies to gathering information in the textual form while covering emotions, beliefs and view point of respondent (Taherdoost, 2022). Quantitative research design implies to gathering information in logical stance and numerical form. For determining impact of compensation strategies on employees’ productivity, qualitative method will be used by the researcher. This method aids in gaining information regarding real life issues and obstacle leads to gaining wider understanding regarding topic (Bell, Bryman and Harley, 2019). Further, impact on employees’ productivity could not be understood in numerical manner due to which qualitative method will be used. This method promotes flexibility which ignores investor’s perception rather based on the exploring respondent’s perception leading to gaining better outcome. Moreover, exploratory research will be used that focuses over establishing cause and effect relationship which assists in gaining better insight of topic. Along with this, inductive approach and interpretivism philosophy will be used which provide holistic view point of issue leading to enhancing overall understanding.
Data collection refers to the process of evaluating diverse sources for gaining all the crucial information related to the topic (Kamper, 2020). Data collection method has been broadly classified into two components that include primary and secondary data collection method. Primary data collection implies to method of collecting information directly from the first hand sources which aids in gaining original information. Secondary data collection method implies to process of gathering information which was initially collected by other individuals. In the current study for determining impact of compensation strategies, both primary and secondary data collection method will be used. Primary method will help in gaining original information that assist in better evaluating research topic (Mulisa, 2022). In this regard, 30 employees of Easy Jet will be selected on which survey will be conducted through questionnaires. Along with this secondary data will be also be collected that assist in determining view point of experts and other author and provide huge amount of data in limited time. In this context, researcher will be involved towards analysing diverse books, journals, scholarly articles and blogs. Moreover, Google scholar will be used to gaining access to the entire document which assists in effectively determining research outcome.
3.2. Research Methods and Sources
Data analysis implies to the process of transforming raw data into actionable insight which aids in effective decision making. SPSS and thematic data analysis are two most significant methods for gaining insight of the collected data (Hasan et al, 2021). In the context of establishing interrelationship between compensation strategies and workers’ productivity thematic data analysis method will be used by researcher. Thematic approach implies to the process of determining patterns and trends in the qualitative method. Researcher will use six step processes that include familiarization, coding, developing, reviewing and defining themes and eventually naming and writing up. In this context, various themes will be drafted and the outcome will be representing in graphical from for effectively analyzing the same.
3.3. Sampling Design
Sampling refers to process of selecting some of the respondent which will represent the mindset and perception of total population (Suri, 2020). This method has been classified into two basis which include random and non random sampling method. In the context of identifying impact on employees’ productivity due to compensation strategies, random sampling method will be used by the researcher. In this regard, 30 employees of Easy Jet will be selected through random sampling method on which survey will be conducted.
3.4. Research Procedure and Ethical Considerations
Researcher is focused on undertaking all the procedures in ethical and fair manner which assist in maintaining trust and confidence of respondents. While collecting primary data, focus will be paid over signing consent form which depicts approval for respondent while providing information. Moreover, informative sheet will also be provided which describe all the crucial and pivotal information to respondents. Further, accurate and appropriate citation will be initiated that define the source of information. Moreover, reference list will be attached at the end as to acknowledge efforts and contribution of original researcher.
3.5. Practical considerations
Lack of time and money are the crucial obstacles which impact on overall quality of the study. To overcome time constraint, secondary research has been incorporated with primary that aids in gaining wider information in limited time. Moreover, thematic approach has been used instead of SPSS which help in easily representing information in graphical manner and assist in better interpretation.
4. IMPLICATIONS AND CONTRIBUTIONS TO KNOWLEDGE
4.1. Practical Implications
The current study will guide Easy Jet manager regarding various positive and negative impacts of compensation strategies based on which accurate decision are taken. This will also guide the other organization within tourism industry regarding various factors impacting employees’ productivity based on which timely actions could be initiated (Char, Abràmoff and Feudtner, 2020). Moreover, the study will also guide organization regarding various factors that impact on organization’s productivity based on which necessary decision could be taken.
4.2. Theoretical Implications
The current study will act as the basis and point of reference on which future studies could be conducted for better understanding.
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Online
Compensation strategy of Easy Jet. 2024. Online. Available through: < https://corporate.easyjet.com/investors/regulatory-news/news-details/2024/Results-for-the-12-months-ending-30-September-2024/default.aspx>
Description of Easy Jet. 2025. Online. Available through: < https://www.globaldata.com/company-profile/easyjet-plc/#:~:text=easyJet%20Plc%3A%20Overview&text=easyJet%20provides%20holiday%20packages%20and,A320%20neo%2C%20and%20A321%20neo.>
Maslow leadership theory. 2022. Online. Available through: < https://keap.com/business-success-blog/business-management/leadership/maslow-in-the-context-of-leadership-and-employee-engagement#:~:text=According%20to%20Maslow%2C%20people%20must,before%20reaching%20one's%20full%20potential.&text=Maslow's%20theory%20can%20easily%20be,and%20enjoying%20what%20they%20do. >
