For a smooth functioning of any organization, a pool of resources composed of manpower, machinery, money, etc., is required in a synchronized fashion. A proper coordination of the available resources leads to the attainment of the pre-defined goals and objectives of the organization. All these can be achieved by a class of highly skilled and motivated employees working in the organization. Different motivational factors help in increasing the morale of the employees and in turn, controlling the retention rate in the organization. This study aims at highlighting the monetary and non-monetary benefits adopted by various companies, with a main focus on the compensation and other benefits for the employees, apart from their fixed salary. The sector taken under study is the education sector, wherein different management institutes have been taken into consideration as a sample for the survey. This research paper represents the perception of the employees of the education sector regarding the effect of compensation and other related benefits on their performance. It indicates the level of satisfaction and dissatisfaction of the employees on the parameters specified above. This study can prove beneficial to the education sector wherein corrective measures may be taken by employers in the mentioned sector to motivate the employees in order to get their best performance for achieving the overall organizational goals and standards.

In the era of highly competitive and strategic markets with a high degree of volatility in terms of the stability of the employees and thereby, fast-switching of jobs, organizations today are now searching for ways to retain their competent employees, which actually are an asset to the organization. They are now adopting performance-related pay hikes, gainsharing and employee stock options to retain the talented employees within the organization. For a better alignment of the effective performance of the employees, the employer should have a clear picture of the reward policies for the employees. For this, various reward mixes can be utilized by the employers, ranging from monetary to non-monetary benefits given to the employees. The efficient compensation strategy is being adopted to reinforce the right kind of mindset and behavior among the people. But the process of adopting an effective compensation strategy requires a remodeling of the methodology to evaluate the performance of the employees. For any organization aiming at the achievement of a complete market leader status, some crucial aspects must be kept under consideration while adopting reward and compensation strategy for the employees, like the parameter of deciding the appraisal should be focused mainly on the performance, skills, competence or decided on the basis of market rates, etc.

Main emphasis is to be given on deciding a compatible mix of reward and compensation package as per the caliber and responsibilities assigned to the employee. This also acts as a benchmark in projecting the expectations of the organization and subsequently the performance appraisal. It clearly explains what is expected from the employees by the organization. It must be written, communicated and understood throughout the organization. It plays a dominant role in managing and evaluating the performance as well as the expectations of the employees. The absence of any strategic guideline in terms of compensation and reward strategy may hamper the achievement of organizational objectives as well as individual objectives.

Education Sector, Strategic Markets, Organizational Objectives, Reward Strategy, Indian Armed Forces, Compensation Survey, HR management framework, Employee Retention, Human Capital Group, Compensation Policies, Profit Sharing Approach, Strategic Human Resource Management.