Introduction
The aim of this research study is to build an understanding regarding the impact of employee compensation on
their job satisfaction and employee’s organizational commitment among Pakistani university teachers.
Enhancing organizational commitment among the faculty members is an essential element because that will
eventually result in their higher employee commitment, enhancing retention and they will perform better.
By identifying the impact of employee compensation in educational sector will help organizations to foster
organizational commitment and enhance their satisfaction level among faculty members. This study also aims
to develop a course of action for university’s administration to come up with practices which would enable
them to attract and retain top level faculty at their institutions.
A study conducted by Peril and Promise (2000) stated that Pakistan is a developing nation and for them
education is of great importance. Their education sector is facing many problems of them if the quality of
faculty. According to Lee (2004) one of the major reasons of lack of commitment and turnover of teachers
could be compensation that is being offered.