Abstract:
This study examines the impact of pay-for-performance on the satisfaction of operational-level
employees in a selected apparel company in the Kalutara district, Sri Lanka. The dimensions of the study include
skill allowances, target incentives, team leader allowances, and overall job satisfaction. A sample size of 192
employees was selected using a probability sampling technique, and data was collected via standard questionnaires
administered through Google Forms and printed questionnaires. The analyzed results indicate that 68% of the
variation in job satisfaction can be explained by independent variables. The correlation and multiple linear
regression analysis results suggest that all the independent variables skill allowances, target incentives, and team
leader allowances—have a strong positive correlation with the dependent variable, job satisfaction. Consequently,
all the developed hypotheses were accepted, confirming the significant impact of pay-for-performance systems
on employee satisfaction. These findings highlight the importance of well-structured incentive programs in
enhancing employee satisfaction within the apparel industry. The study provides valuable insights for managers
and policymakers aiming to optimize performance and satisfaction levels among operational-level employees.
