Article author:
Andreja Katolik Kovačević, Željko Požega, Vesna Vučemilović
Full article:
Year the article was released:
2024
Edition in this Year:
1
Article abstract:
THE INFLUENCE OF THE AMOUNT OF MATERIAL COMPENSATION PER EMPLOYEE ON THE COMPANY’S BUSINESS
Abstract:In order to evaluate the impact of the amount of material compensation per employee
on the performance of the company, the authors systematically analysed amount
of material compensation per employee, total income, total expenses, net profit margin
and return on equity in small, medium and large companies in the five observed counties
of the Republic of Croatia. The aim of the paper is to analyse the connection between
the amount of material compensation of employees and the performance of the company.
The research in the paper was conducted based on data provided by the Financial
Agency, a leading Croatian company in the field of providing financial and electronic
services. The research was conducted on a sample of 3,914 small, medium and large
companies. In the research part of the paper, Spearman’s correlation coefficient which
is a non-parametric equivalent of Pearson’s correlation coefficient (product of rank correlation),
was used to assess the relationship between the variables of average monthly
net wage and salary per employee, total income, total expenses, net profit margin, return
on equity. The results indicate that there are significant differences between the size of the
company and the observed parameters (average monthly net wages and salaries per employee,
total income, total expenses, net profit margin, and return on equity). Based on an
extensive analysis of data, obtained results indicate that the given correlation matrix of
the connection between the average monthly net wage and salary per employee with the
observed parameters for all years shows that all parameters are statistically significantly
correlated. This paper provides an insight into the importance of human resources and
their proper management on the company business, regardless of their size. Statistical
analysis of research data was performed by statistical software MedCalc® Statistical
Software and SPSS Statistics for Windows.
on the performance of the company, the authors systematically analysed amount
of material compensation per employee, total income, total expenses, net profit margin
and return on equity in small, medium and large companies in the five observed counties
of the Republic of Croatia. The aim of the paper is to analyse the connection between
the amount of material compensation of employees and the performance of the company.
The research in the paper was conducted based on data provided by the Financial
Agency, a leading Croatian company in the field of providing financial and electronic
services. The research was conducted on a sample of 3,914 small, medium and large
companies. In the research part of the paper, Spearman’s correlation coefficient which
is a non-parametric equivalent of Pearson’s correlation coefficient (product of rank correlation),
was used to assess the relationship between the variables of average monthly
net wage and salary per employee, total income, total expenses, net profit margin, return
on equity. The results indicate that there are significant differences between the size of the
company and the observed parameters (average monthly net wages and salaries per employee,
total income, total expenses, net profit margin, and return on equity). Based on an
extensive analysis of data, obtained results indicate that the given correlation matrix of
the connection between the average monthly net wage and salary per employee with the
observed parameters for all years shows that all parameters are statistically significantly
correlated. This paper provides an insight into the importance of human resources and
their proper management on the company business, regardless of their size. Statistical
analysis of research data was performed by statistical software MedCalc® Statistical
Software and SPSS Statistics for Windows.
Keywords: material compensations, motivation, successful business