Impact of Remuneration on employee performance in Garments Sector of Bangladesh

Abstract

The relationship between remuneration and employee performance has been a significant area of interest in organizational studies. In the context of the garments sector in Bangladesh, employees are typically rewarded based on their performance and contribution to the organization. Remuneration serves as an essential tool for motivating employees, encouraging them to perform better and enhance business functionality. This study focuses on the impact of remuneration on the performance of employees in the garment sector, aiming to determine how compensation influences their productivity, satisfaction, and overall job performance. The study identifies key factors affecting employee performance, including working conditions, employer-employee relationships, training opportunities, job security, and company policies. It emphasizes the crucial role of motivation driven by fair remuneration in driving performance improvements. However, it is observed that despite the rising living costs, employees in Bangladesh’s garment sector continue to receive low wages, leading to dissatisfaction and reduced motivation. The study suggests that increasing remuneration in line with inflation and employee needs could significantly enhance employee satisfaction, motivation, and performance. Recommendations for improving remuneration structures in garment factories are provided to help management improve worker morale and productivity.