Evaluating the Role of Digitalized Compensation Practices in Enhancing Employee Motivation: A Study in the Private Healthcare Sector
Keywords:
Compensation, Digital HR, Employee Motivation, Healthcare, Human Resource Management, Perceived FairnessAbstract
The digital transformation of HR practices, particularly in compensation management, has become central to employee experience. This study aims to assess whether digital compensation systems contribute to improved employee motivation in private healthcare settings, with perceived fairness as a mediating factor. The study utilized a quantitative research design, surveying 149 employees from hospitals, clinics, and diagnostic centers. Structured questionnaires measured digital compensation practices, perceived fairness, and motivation. Regression and mediation analyses were performed using SPSS and JASP. The results revealed a statistically significant relationship between digital compensation and motivation. Perceived fairness was found to partially mediate this relationship, suggesting that the motivational impact of digital tools depends on how fair employees perceive them to be. The study is limited to private healthcare institutions and self-reported data. Future research could include public sector institutions or compare cross-industry effects.This paper offers novel insight into how the digitalization of compensation practices interacts with employee motivation, highlighting the critical role of fairness perception in digital HR adoption success.
References
Boateng, R. (2021). Digital HRM and employee engagement: The role of trust and motivation in healthcare. Journal of Health Management, 23(2), 220–233. https://doi.org/10.1177/09720634211021489
Colquitt, J. A., Conlon, D. E., Wesson, M. J., Porter, C. O. L. H., & Ng, K. Y. (2001). Justice at the millennium: A meta-analytic review of 25 years of organizational justice research. Journal of Applied Psychology, 86(3), 425–445. https://doi.org/10.1037/0021-9010.86.3.425
Marler, J. H., & Parry, E. (2016). Human resource management, strategic involvement and e-HRM technology. The International Journal of Human Resource Management, 27(19), 2233–2253. https://doi.org/10.1080/09585192.2015.1091980
Olaere, Y., Ajalie, S. N., & Oigbochie, A. E. (2024). Empirical examination of leadership styles as a predictor of organizational performance in Bayelsa Specialist Hospital. American Journal of Economics and Business Innovation, 3(2), 158–163. https://doi.org/10.54536/ajebi.v3i2.2955
Ryan, R. M., & Deci, E. L. (2000). Self-determination theory and the facilitation of intrinsic motivation, social development, and well-being. American Psychologist, 55(1), 68–78. https://doi.org/10.1037/0003-066X.55.1.68
Siddiqua, S. I., Fayezin, T., & Hoque, R. (2022). Intermediating role of human resource management in organizational conflict and its influence on organizational effectiveness – Evidence from Bangladesh’s banking sector. American Journal of Economics and Business Innovation, 1(3), 93–101. https://doi.org/10.54536/ajebi.v1i3.946
Vroom, V. H. (1964). Work and motivation. New York, NY: Wiley.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Aishwarya Anandavalli, S. Antony Raj
This work is licensed under a Creative Commons Attribution 4.0 International License.
