Impact of Compensation,Job Enrichment and Enlargement,and Training on Employee Motivation

Abstract

Motivation is the process of increasing employee commitment and it is considered one of the key fundamentals, which are essential for organizational success. In a globalized working environment, implementing an effective compensation system, job enrichment, and enlargement, and appropriate training are some of the critical challenges facing by organizations to keep motivated their employees. Thus, the present study aims to investigate possible influencing factors such as compensation, job enrichment and enlargement, training, and their effects on employee motivation in the telecommunication sector in Libya. The findings revealed that all investigative factors have significant relationships with employee motivation. This study suggests that telecommunication companies should formulate an appropriate compensation system comprising of monetary and non-monetary rewards, provide job training to enhance knowledge and skills, as well as offer job enrichment and enlargement opportunities for the employees to expand their motivation and therefore result in organizational success. The limitations of the study and future research recommendations are addressed at the end.

Keywords

Compensation training job enrichment and enlargement employee motivation telecommunication companies in Libya

Introduction

The changing environment at the workplace drives organizations to seek new and effective ways to improve their performance. To attain this performance improvement, organizations must focus on upgrading employees’ abilities and enhance their motivational levels to achieve the desired goals. An organization's understanding of its employees is an essential tool for success. Additionally, there is a need to link employee motivation with development factors such as compensation systems, job enrichment and enlargement practices, as well as training to encourage and motivate employees to increase their performance (Upneja & Ozdemir, 2014).

The importance of employee motivation in the organization comes from the significant and direct effects of employees’ attitudes and behaviors on the total productivity of the organization. Organizations need to attract prospective talented employees with the required skills to join the organization. Moreover, to increase the existing employees’ commitment to stay within the organization, it is highly essential to implement a suitable compensation system that works as a stimulus for the employees (Aslam et al., 2015). In the same vein, job enrichment and enlargement policies, as well as effective training strategies, are helpful to an organization to enhance the interest and commitment of its employees.

Globalization and transformations in the work environment have inspired organizations to develop human capital capable to sustain a competitive edge in the domestic and international markets (Johnson, 2008). In a recent ever-changing market, organizations have to operate in a highly challenging and dynamic work environment encouraging organizations to transform their policies to remain competent. Employee motivation is a critical influencer of organizational success and close attention needs to be paid to the factors that affect the motivational level of employees (Güngör, 2011). Furthermore, rapid changes in the work process make the adaptability of new technology and skills as essential tools for the organization to gain a competitive edge.

Unfortunately, in terms of human capital development, low progress has been noted among developing countries such as Libya (Alhgig & Mehta, 2018). Notably, the telecommunication sector in Libya, despite its massive contribution to the economy, is facing numerous challenges in terms of employee motivation resulting in low organizational performance (Almadani, 2017). According to the annual report of telecommunication companies in Libya on employee motivation, employees have been found with low levels of motivation, especially after the revaluation phase in the country (Alhgig & Mehta, 2018). Low employee motivation is a challenge faced by the country due to complex circumstances that forced the current government to propose a new payroll law. Connecting the employee motivation with the organizational pay system can help to ensure the validity of the salary, and whether or not the employees receive the deserved amount from their work (Milne, 2007). Low levels of employee motivation can result in disruption of organizational stability and growth. Research conducted in the USA empirically proved that organizations have used the compensation system to improve the chief executive officer (CEO) performance and motivation was found positively linked with the total organization profitability (Upneja & Ozdemir, 2014). According to Achim et al. (2013), organizational performance relies on the motivational system; this leads organizations to encourage their employees to work hard for the achievement of organizational goals. Moreover, employees’ satisfaction and wellbeing through job enrichment and enlargement at the workplace can improve their organizational commitment and motivate them to put their sincere efforts for organizational success. Empirical findings from previous studies show that motivational systems adapted by organizations can be considered as a source to increase the total organizational performance through motivated employees (Paarlberg & Lavigna, 2010).

Given this, it seems pertinent to consider the factors affecting employee motivation. Even though some research has been carried out on employee motivation and its predictors, there is still an excessive need for an empirical investigation on leading factors that direct employee motivation in the context of developing countries such as Libya (Teclemichael Tessema & Soeters, 2006). Therefore, the purpose of this study is to investigate compensation, job enrichment and enlargement, training, and their relationship with employee motivation. The study aims to fill the knowledge gap of prospects and consequences of employee motivation in the telecommunication sector in Libya. The findings could potentially assist the organizational leadership and policymakers in Libya to implement several motivational strategies to enhance the capabilities of employees and achieve the desired goals.

Literature Review

Motivation

Motivation can be defined as the capability to transform the behaviors and performance of employees at the workplace (Lindner, 1998). It is considered the internal drive of an individual’s activities. The psychological and motivational aspects of human capital development policies should be anticipated to improve overall organizational performance. In fact, motivation is the element that differentiates humans from other tools and machines used by organizations to perform tasks. Motivation, as defined by Robbins and Everitt (1996), is the “willingness to exert high levels of effort toward organizational goals, conditioned by the effort’s ability to satisfy individual needs.” For this sake, organizations are supposed to establish effective motivational strategies to comprehend employees’ determination and productivity. Güngör (2011) statistically found that motivation has a significant effect on the level of employee performance and employees with high motivation levels appear to perform better than their counterparts.

Another research conducted by Grant (2008) on the assessment of employee motivation found a positive relationship between motivated employees and organizational task performance. The findings revealed that compensation and job appraisal are the leading factors that can enhance the motivation of employees. Several psychological studies revealed that motivation results in different kinds of positive behaviors that are prerequisites for an organization to perform well (Ryan & Deci, 2000). To quote Dwight Eisenhower’s statement, “Motivation is the art of getting people to do what you want them to do because they want to do it,” it can be comprehended that motivation is a drive that encourages people to perform effectively in accordance with the organizational needs (Achim et al., 2013). In his study, Ramlall (2004) employed equity theory, need theory, job design model, and expectancy theory as the relevant theories for employee motivation. Based on his assessment, there are five methods of illuminating behaviors; these are needs, cognition, reinforcement, job characteristics, and emotions/feelings. As found by Steers and Porter (1983), work motivation is an element that manages and sustains the behavior of an employee.

To transform individual behaviors, autonomy, job appraisal, training, as well as monetary and non-monetary rewards are considered as key motivators by some researchers. For instance, a study directed by Porter and Miles (1974) gathered several elements that influenced employee motivation and characterized those into three groups, namely job (degree of autonomy), individual (need for achievement), and work environment characteristics (rewards). The present study integrated and investigated the three influential determinants of employee motivation such as compensation, job enrichment and enlargement, and training.

Compensation

Compensation is a tool for organization’s use to impact employees’ behavior in a way that enhances their contribution in achieving organizational goals. If the exchange relationship between employee and employer is strengthened with a reward system, it can influence employee motivation (Güngör, 2011; Thaiefi et al., 2015). The compensation system comprises of monetary and non-monetary rewards adopted by an organization for the sake of improving the efficiency of its employees through increased motivation. An apparent compensation system, therefore, is tempting to new employees and assists in limiting employee turnover (Summers, 2005).

In the context of higher education institutions (HEIs), a study conducted by Early and Winton (2001) found that compensation systems and performance appraisal help institutions to attract a highly skilled workforce to join and play a role in improving the education system. Organizations use the compensation system to increase the effectiveness and outcomes by adding value to employee efforts and contributions. Kuster and Canales (2011) found in their study that companies use several compensation strategies to influence the motivation and performance of salespersons and this can finally help them to increase revenue.

Rewarding an employee is not only about monetary rewards; it also includes encouragement and appraisal through word-of-mouth strategies to build confidence and a sense of belonging (Conger, 1989). For instance, recognition and open appreciation of an employee by managers for efficient work can be a source of motivation for other employees. Hart et al. (1990) stated that a company that effectively implements a reward system endorses a positive fortification for employees to contend with challenges. Therefore, it can be concluded that rewarding an employee through monetary and non-monetary compensation has significant effects on employee motivation (Berry et al., 1987).

Training

The dynamic shifts in the work process and globally competitive environment demand organizations to train employees to be adaptive to workplace changes. Organizations are in need to provide appropriate and advanced training to disseminate the required skills and knowledge. Training is the most appropriate source of motivation for an organization to improve the capabilities of the employees. Training impacts the general self-efficacy of an individual and thus, it results in increased motivation and greater confidence (Tai, 2006).

Concerning the definition of training, Mathis and Jackson (2002, p. 5) proposed that training is a “process where people reach a particular capability to assist in achieving desired organizational goals.” While Davis and Werther (2010, p. 164) emphasized that “training prepares people to do reviews their present jobs and development prepares employees needed knowledge, skills, and attitude.” In other words, training is an essential tool for an organization to satisfy the increasing demand for employees’ contemporary knowledge and skills. With increased confidence in employees’ capabilities through effective training, HR managers assist workers to perform their tasks without any stress (Mangkunegara & Waris, 2015). Some previous studies have empirically proven a positive and strong relationship between training and employee motivation (e.g., Hughes et al., 2018; Jaworski et al., 2018; Sahinidis & Bouris, 2008).

Effective training programs are considered to be a method that can alter employees’ behaviors and attitudes. A study in the military hospital in Jordan proved that organized training has a strong impact on nurses' attitudes toward violence at the workplace and a direct effect on performance (Al-Ali et al., 2015). They suggested that cultivating the required skills and knowledge among nurses to deal with the patients would increase hospital productivity and reduce stress at the workplace.

The four approaches to training outcomes as summarized in Hamblin et al.’s (1971, p. 15) statement are: “training leads to reactions, which leads to learning, which leads to changes in job behavior, which leads to changes in the organization, which leads to changes in the achievement of ultimate goals.” A causal relationship can be observed between these variables and the impact of each variable on the others. Thus, training comprises distinct activities designed to enhance the knowledge, skills, and competencies that result in increased motivation among employees.

Job Enrichment and Enlargement

Job enrichment can be explained as greater diversity in work content at the workplace achieved by giving autonomy to the employees. By involving them in the decision-making process, employees will feel responsible for their job-related conducts and outcomes. The ability of employees to handle multiple tasks contributes to meaningful work experience at the workplace and motivates them to increase their performance (Garg & Rastogi, 2006).

Job enrichment allows employees to organize their schedules during work and be in charge of their tasks. The autonomy given to the employees can reduce work-related family conflicts and lead to job satisfaction at the workplace. Researchers have found that employees with the freedom to manage flexible working hours and job processes possess a high level of motivation (Baral & Bhargava, 2010). The significant effects of autonomy can be seen in team performance as well. Freedom in the team to choose team members with required information and skills can be more creative and productive toward organization goals (Yang & Ok Choi, 2009). Some studies have proven that enriching the work experience of employees improves their motivation and job commitment (Ali et al., 2010; Becker et al., 1996). Furthermore, job enrichment and enlargement have a significantly positive effect on self-control, self-actualization, and self-respect (Dost & Khan, 2012).

The job enlargement component focused on the span of professional responsibilities provided to the organizational employees. The contemporary employees seek a highly versatile and challenging role in the workplace environment, which would help in reinforcing their professional credentials and progress at the workplace (Jiang et al., 2009). Given this, job enlargement is considered beneficial in terms of motivating employees by increasing their exposure and efforts toward achieving the organizational objectives.

Research Framework and Hypothesis Development

The current study contributes to the knowledge body by formulating a dynamic framework comprised of the predicting factors affecting employee motivation. The literature by Murphy et al. (1996) and Frankfort-Nachmias and Nachmias (2007) have shown the use of reliable conceptual frameworks in examining the relationship between performance and its antecedents. They also recommended further investigation of the reliable dependent variables to discover more significant relationships in measuring the employee’s motivation. In response to these suggestions, this study derives a research framework comprising of compensation, training, job enrichment and enlargement, and employee motivation. The designed research framework is exhibited in Figure 1.

Figure 1.

Source: The authors.

Compensation and Employee Motivation

Employees as human beings have reasons for their actions. An organization is responsible to understand the motivating factor to influence employee behavior in the organization. A study from a diverse type of organization in Pakistan investigates the impact of compensation and job recognition on job satisfaction and employee motivation. The results revealed that the reward system had more effects on employee motivation and job satisfaction than appreciation (Danish & Usman, 2010). Their study concluded that recognition motivates the employees, but this is more evident when they get paid for their contribution.

Many researchers investigated the different types of compensation, for example, monetary and non-monetary, and its effect on employee motivation. For instance, Mayson and Barrett (2006) explained that an organization’s ability to motivate, fascinate, and retain employees is linked with appropriate rewards and competitive salaries offered by an organization. In another study, Madhani (2009) proposed that the compensation policies introduced in the sales department placed a significant impact on employee motivation and increased performance. Thus, in an ever-competitive environment, most of today's’ organizations are in a struggle to identify advanced compensation strategies and consider it a source of motivating employees (Magnan & Martin, 2018).

Based on these arguments and the literature mentioned above that supports the relationship between compensation and employee motivation, the following hypothesis is derived to test in the present study.

Hypothesis 1. The compensation system has a significant and positive effect on employee motivation.

Training and Employee Motivation

Organizational effectiveness is built on knowledge, skills, and competencies to deal with the most complex tasks through the contribution of their human capital. Training activities can be used as a source of motivation to improve both individual and teamwork productivity. In their study, Tabassi et al. (2011) found that to fulfill the tasks, which need a group of employees to be performed; motivation plays a significant role in training and teamwork improvement. Their study statistically proved that training motivates the team members for skill development.

Employee motivation is affected by several predictors. In light of the current study, employee training plays an active role in enhancing employee motivation in the workplace. The existing literature offers pieces of evidence that show an apparent effect of employee training on motivation (Purcell et al., 2003). For instance, Wright and Geroy (2001) stated that employee competencies could transform with advanced and effective training programs to improve the overall employee motivation level to perform their jobs efficiently. They further emphasized that training increases the skills, attitude, and knowledge of the workers. According to Kinnie et al. (2005), training is a means of dealing with skill deficiency. They elaborated that this deficiency can be improved through the intervention of relevant training programs offered by an organization.

The role of an organization, in particular HR managers, is critical to formulating and executing the advanced training programs, which can result in the increased motivation of employees. This discussion suggests the following hypothesis:

Hypothesis 2. Training has a positive effect on employee motivation.

Job Enrichment and Enlargement and Employee Motivation

Job enrichment and enlargement offer employees the freedom to organize their work process and time. This can help to reduce the stress associated with the job and motivates employees to perform well. The opportunity of variety in tasks plays an important role in enhancing employee motivation with the experience of different kinds of tasks (Robbins, 1999).

Job enrichment reflects a feeling of satisfaction, which an individual can derive from the work itself. Structured and well-organized jobs enable people to feel like human beings instead of units of production (Wood, 2018). Noticeably, interdependence can be seen between job enrichment, enlargement, and employee motivation. In return, job enrichment and enlargement allow employees to feel that the organization actually owns them, and therefore, they put their true efforts toward achieving organizational goals. Saleem et al. (2012) found that employees’ performance depends on the level of job satisfaction that is highly reliant on the job enrichment and enlargement strategies of an organization.

Given this, the authors assumed that job enrichment and enlargement could have a significant effect on employee motivation. Therefore, it is postulated that:

Hypothesis 3. There is a significant relationship between job enrichment and enlargement to employee motivation.

Methodology

Sample and Data Collection

As this study concerns the compensation, training, job enrichment and enlargement and the impact of these factors on employee motivation in the telecommunication sector in Libya, the research sample consists of employees working in telecommunication companies. Data were collected during the year 2016. Through an email survey, 600 questionnaires were disseminated to employees. A total of 446 responses were received back. Two responses were returned blank, and 38 questionnaires did not properly fill as per the criteria set for the present study. The final usable questionnaires were 406 with a response rate of 67.6%. Prior studies have recommended that a response rate of 20%–30% is satisfactory to analyze the data. Thus, in the present study, the response rate of 67.6% is considered sufficient to further the data for analysis. The demographic part of the questionnaire was categorized into six items, including company, gender, age, education, experience, and job designation. The participation of the respondents was on a voluntary basis.

Measurements

Data was collected through an organized self-administered survey. Even though employees were familiar with motivation, a definition of motivation was provided at the beginning of the questionnaire just in case the respondents needed to confirm that they have interpreted the meaning of motivation correctly. They were then asked to fill up the survey form comprising of their demographics, employee motivation, compensation, training, and job enrichment and enlargement. The measurements of all variables were adopted from the previous literature (Chiang et al., 2008; Elding, 2005; Güngör, 2011) and were anchored on a 5-point Likert scale.

Respondents Profile

The respondents’ demographics are presented in Table 1. The highest participation belonged to the Libya Company with 101 respondents (24.9%). The least respondents were from International Communication with 21 (5.2%) participants. There were more male respondents (71.9%) than female respondents (28.1%); this study represents the gender ratio of the employees in the telecommunication sectors. Most of the respondents fell in the age group of 30–39 (41.1%). The majority of the respondents in this study had a bachelor’s degree (44.6%). In terms of respondents’ experience, most of the respondents were in the group of 15–20 years (21.9%). More than half of the respondents (58.1%) were employees below the managerial level.

Table 1.

Respondents’ Profile.

Demographic Data	Frequencies (n = 406)	Percentage
Company
Libya Company	101	24.9
Albiena Company	68	16.7
Libya phone	84	20.7
Algel Algaded	40	9.9
International Communication	21	5.2
LTT	50	12.3
Almadar Algaded	42	10.3
Female	292	71.9
Male	114	28.1
Age
Less than 20 years	2	0.5
Between 20 and 29	41	10.1
Between 30 and 39	167	41.1
Between 40 and 49	162	39.9
More than 41	34	8.4
Education
High school	56	13.8
Higher diploma	132	32.5
Bachelor	181	44.6
Masters	37	9.1
Experience
Less than 5 years	82	20.2
Job designation
Department manager	19	4.7
Office manager	9	2.2
Head of the department	55	13.5
Head unit	74	18.2
Consultant	13	3.2

Source: The authors.

Results

The statistical data has been analyzed by using the AMOS software. AMOS is useful to determine the measurement model, correlation, and structural equation modeling. The results gained through different statistical tests and techniques are presented in the following subsections.

Variables Descriptive Statistics and the Correlation Analysis

The researchers developed descriptive statistics of variables and correlation analysis, with the mean value, standard deviation, and the Pearson correlation coefficient of each variable as shown in Tables 2 and 3. Findings from the analysis indicate preliminary support for the relationships as hypothesized for the present study.

Table 2.

Descriptive Statistics.

Descriptive Statistics
	Mean	Standard Deviation	N
Motivation	16.8209	3.42944	296
Compensation	17.2703	3.49061	296
Training	21.8446	7.57938	296
Job enrichment and enlargement	17.7466	3.90480	296

Source: The authors.

As shown in Table 2, the mean and standard deviation of all the variables represent a significant relationship among the constructs.

Table 3.

Correlation Analysis.

Correlations
		Motivation	Compensation	Training	Job
Pearson correlation	Motivation	1.000	0.493	0.473	0.391
	Compensation	0.493	1.000	0.466	0.328
	Training	0.473	0.466	1.000	0.412
	Job enrichment and enlargement	0.391	0.328	0.412	1.000
Sig. (one-tailed)	Motivation	–	0.000	0.000	0.000
	Compensation	0.000	–	0.000	0.000
	Training	0.000	0.000		0.000
	Job enrichment and enlargement	0.000	0.000	0.000	–
N	Motivation	296	296	296	296
	Compensation	296	296	296	296
	Training	296	296	296	296
	Job enrichment and enlargement	296	296	296	296

Source: The authors.

Table 4.

Reliability Analysis.

Variables	Cronbach’s Alpha	Mean	Variance	Standard Deviation	N of Items
Compensation	0.800	34.8005	39.261	6.26589	10
Training	0.948	22.1823	57.196	7.56283	8
Job enrichment & enlargement	0.833	36.7291	46.015	6.78346	10
Motivation	0.810	36.37438	33.943	5.826100	10

Source: The authors.

Testing the instruments’ reliability is highly substantial for the confirmation of internal consistency among the items. However, Cronbach’s alpha was employed in the present study as it is the most common and reliable method for calculating the constructs’ reliability using a set of items. The results showed that all values of Cronbach’s alpha are adequate as all ranged from 0.800 to 0.948. Specifically, the construct of compensation attained a Cronbach’s alpha of 0.800, while training and job enrichment & enlargement achieved 0.988 and 0.833, respectively (Table 4).

Lastly, motivation attained a Cronbach’s alpha value of 8.10. Based on these statistical findings, the expectations of reliability for all constructs are satisfied with the criteria as Cronbach’s alpha values are greater than 0.70 as suggested by Pallant (2010).

Measurement Model

After the reliability analysis, the measurement model was examined by identifying several fit values that are recommended for AMOS. The results of those values have been shown in Table 5 and Figure 2, where the results confirmed all the criteria of the model fit.

Figure 2.

Source: The authors.

Table 5.

Motivation Factor Analysis.

Fit Index	Sources	Admissibility	Results
P-value	(Moore & Kirkland, 2007)	>0.05	0.253
x²/df	(Kline, 2015)	1.00–5.00	1.233
RMSEA	(Steiger, 1990)	<0.08	0.028
RMR	(Hu & Bentler, 1999)	<0.08	0.027
GFI	(Jöreskog & Sörbom, 1993)	>0.90	0.986
NFI	(Bentler & Bonett, 1980)	> 0.80	0.970
IFI	(Bollen, 1990)	>0.90	0.950
TLI	(Tucker & Lewis, 1973)	>0.90	0.990
CFI	(Byrne, 2016)	>0.90	0.994

Source: The authors.

Notes: df: degree of freedom; CFI: comparative-fit-index; RMSEA: root mean square error of approximation; RMR: root mean square residual; GFI: goodness-of-fit; NFI: normed fit index; IFI: the increment fit index; TLI: Tucker-Lewis coefficient index.

The above stated constructs were included in the measurement model. The CFA result confirms that the model is fit. The data shows that P-value = 0.253, RMR = 0.027, GFI = 0.986, NFI = 0.970, CFI = 0.994, IFI = 0.994, and RMSEA = 0.028. Thus, all these model fit indexes indicate that the model is fit (Figure 3, Table 6).

Figure 3.

Source: The authors.

Table 6.

Common Factor Analysis (Measurement Model).

Fit Index	Sources	Admissibility	Result
P-value	(Moore & Kirkland, 2007)	>0.05	0.000
x²/df	(Kline, 2015)	1.00–5.00	2.685
RMSEA	(Steiger, 1990)	<0.08	0.054
RMR	(Hu & Bentler, 1999)	<0.08	0.051
GFI	(Jöreskog & Sörbom, 1993)	>0.90	0.927
NFI	(Bentler & Bonett, 1980)	> 0.80	0.941
IFI	(Bollen, 1990)	>0.90	0.972
TLI	(Tucker & Lewis, 1973)	>0.90	0.940
CFI	(Byrne, 2016)	>0.90	0.972

Source: The authors.

Notes: df: degree of freedom; CFI: comparative-fit-index; RMSEA: root mean square error of approxi-mation; RMR: root mean square residual; GFI: goodness-of-fit; NFI: normed fit index; IFI: the increment fit index; TLI: Tucker-Lewis coefficient index.

The above stated constructs are included in the measurement model. The CFA result represents that the model is fit. The data shows that p-value = 0.000, RMR = 0.051, GFI = 0.927, NFI = 0.941, IFI = 0.972, CFI = 0.972, and RMSEA = 0.054, which confirms the goodness of fit model.

Structural Model

In structural equation modeling (SEM), as highlighted by Byrne (2010), the structural model describes the relationships among the latent (unobserved) constructs. Therefore, the structural model assists in stipulating the manner through which specific latent constructs directly or indirectly affect the values of other latent constructs of a model (Byrne, 2010). The analysis was conducted to evaluate the hypothesized relationships among the constructs. The results suggested that compensation, training, as well as job enrichment and enlargement, are highly correlated.

Before discussing the findings of the proposed hypothesis, the overall fit of the structural model was measured to observe the extent to which the projected causal relationships among the latent constructs fit the data. As stated earlier, it is recommended by researchers that a study should contain one absolute fit index and one incremental index in addition to the degrees of freedom and Chi-square value (Hair et al., 2010). Consequently, in addition to the normed Chi-square (x²/df), the RMSEA and GFI are mentioned as absolute fit indices, and the TLI and CFI are reported as incremental fit indices. Hence, the overall fit of the structural model was evaluated with the same set of fit indices that are reported in the measurement models. The fit indices show that the structural model has a good fit with the data (x²/df = 2.076, CFI = 0.978, GFI = 0.953, TLI = 0.973, RMSEA = 0.040), and therefore supports the basic theoretical model.

Regression Weights

For the sake of hypothesis testing, the results of the structural model are generated in the regression table as shown in Table 7. The results indicate that compensation positively affects motivation (β = 0.257, t-value = 6.143, P < .05), thus, the first hypothesis (H₁) is considered accepted. Furthermore, the findings supported the second hypothesis (H₂) that training positively affects motivation (β = 0.325, t-value = 9.529, P < .05). Lastly, the findings exposed that job enrichment and enlargement is found to have a significant positive effect on employee motivation (β = 0.196, t-value = 6.040, P < .05); thus, the third hypothesis (H3) is supported.

Table 7.

Regression Weights.

			Estimate	S.E.	C.R.	P	Support
Motivation	←	Compensation	0.257	0.042	6.143	***	Yes
Motivation	←	Training	0.325	0.034	9.529	***	Yes
Motivation	←	Job enrichment & enlargement	0.196	0.032	6.040	***	Yes

Source: The authors.

Discussion

This study investigated compensation, training, as well as job enrichment and enlargement, and their effects on employee motivation. These days, Libya has been implementing new strategic plans for economic growth. As an essential part of overall economic growth, the telecommunication sector is in needs to be transformed to meet the challenges of human capital development. The rapidly changing local and global markets have caused positive and negative consequences among organizational management and practices (Donate et al., 2016). In the same vein, employee motivation is one of the immediate implications of this increased dynamic transformation. Prior studies have explored this particular construct in various fields, including clinical sciences to social sciences. However, its scope has now been widened to include the field of telecommunication industries. Studies have shown that employees working in telecommunication companies are facing several challenges in their job, including low levels of motivation, which result in low performance (Khan et al., 2017; Safiullah, 2015). Therefore, this study examined compensation, training, and job enrichment and enlargement as predictors of employee motivation. As the previous researchers have demonstrated that a well-organized compensation system, training, and job enrichment and enlargement opportunities have the potential to reduce the employees’ anxiety and turnover, it is imperative to see their impact on the motivation of employees working in telecommunication companies in Libya.

The data collection was done by questionnaire distribution to the employees working in different telecommunication companies in Libya. The results revealed that all the independent variables such as compensation, training, and job enrichment and enlargement have positive relationships with employee motivation. These findings are in line with several prior studies such as Igalens and Roussel (1999), Conrad et al. (2015), Hameed et al. (2014), and Hanaysha and Hussain (2018). The possible justification for these significant results is that employees are concerned about the monetary and non-monetary rewards to improve their living style. This is more plausible in the context of developing countries. Furthermore, employees perceived that they need the training to enhance their skills and knowledge in order to improve their performance at the workplace. Job enrichment and enlargement are also found a strong predictor of employee motivation as employees believed that they are more flexible and independent in performing their jobs. Hence, all the hypotheses formulated based on the literature have been proven to be significant.

These results are inconsistent with a recent study by Kuvaas et al. (2018), where they found that when the jobs became too demanding and employees are working under intensive pressure, compensation strategies can motivate them to work with increased commitment. As mentioned earlier in the literature review, training as well as job enrichment and enlargement are vital aspects of motivation and have a direct effect on employees’ attitudes and behaviors. In line with the hypothesis, this study confirmed that employee motivation is extendable if the organizational leadership is concerned with employee wellbeing by introducing an effective compensation system, appropriate training, and offering employees’ job enrichment and enlargement opportunities. The study suggests that in order to attract talented employees and retain the existing ones, it is central to formulate the dynamic policies for human capital policies to ensure a win-win situation for both employees and organizations.

Conclusion

To conclude, this article extended the discussion on the topic of employee motivation and its key determinants. It is evident from this study that a telecommunication company can increase their employees’ motivation levels by executing compensation policies, training, as well as job enrichment and enlargement strategies within the organization. Therefore, motivation among employees is a substantial way to engage them with organizational goals.

Job performance through motivation has been the focus of interest for scholars and practitioners. However, most of the studies thus far have been conducted in developed countries. Employees’ motivational factors and their impact vary across nations. This study may form a baseline to lead and help scholars and practitioners to study this phenomenon in different sectors and cultures, especially in developing countries. The results of this study may help the telecommunication companies of Libya to overcome the challenges of low motivation among employees.

The findings of the study revealed that respondents ranked compensation, training, as well as job enrichment and enlargement as the factors that motivate them to perform better at the workplace. These factors imitate the current scenario in terms of employees’ needs and indicate that compensation may be used to motivate and reinforce employees. The training was also considered an important element to improve the knowledge and skills, which eventually bring motivation among employees. Besides, training, another factor that also contributes to employee motivation is job enrichment and enlargement policies for employees in an organization. Based on the findings, it can be concluded that employee motivation is directly linked with the organizational compensation system, training opportunities, as well as job enrichment and enlargement strategies. These factors should not be neglected by an organization that aims to enhance their employees’ motivation.

Study Limitations and Recommendations for Future Studies

The present study is not without its possible limitations. First, only the seven largest telecommunication companies in Libya were selected for data collection. There is a possibility that the location of the companies may cause variations in the results. Second, due to time constraints, convenience sampling was employed to approach the study’s participants; therefore, the findings are subject to probable bias. Third, there might be other elements or factors, which have the potential to affect employee motivation such as the culture of an organization, relationship with colleagues, and/or perceived organizational support. However, this study investigated only compensation, training, as well as job enrichment and enlargement as predictors of employee motivation. Future studies may extend the framework by incorporating the cultural as well as socio-demographic factors while investigating employee motivation.

Fourth, a quantitative approach was utilized for the sake of data collection and analysis. A study designed with a mixed-method approach would be helpful to offer an in-depth analysis of the factors impacting employee motivation. Therefore, it is suggested that researchers may replicate this study to other industries operating in Libya as well as in other emerging economies.

Footnotes

Declaration of Conflicting Interests

Funding

The authors received no financial support for the research, authorship and/or publication of this article.

ORCID iD

Ali Nawari Hasan

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