IMPACT OF SALARIES AND INCENTIVES ON EMPLOYEE SATISFACTION IN AN IT COMPANY
Authors: Deretić Nemanja , Kukolj Saša , Sančanin Branislav 
Published: December 2023

This paper explores key factors influencing salary levels and incentives in the IT sector, using an analysis of statistical data segmented by categories such as age group, gender, work experience, education level, and position within the company. The aim was to determine how these demographic and professional characteristics affect employee priorities regarding compensation and incentives. The research is based on a sample of 150 employees in an IT company, selected through a purposive sampling process, with the intention of providing a deeper understanding of the impact of various factors on employee satisfaction through their compensation structure. A compensation structure in an organization includes all aspects of remuneration received by employees, including base salary, bonuses, benefits, and other forms of incentives. Based on the study of the impact of age limits and gender on employee preferences regarding salaries and incentives, it can be concluded that there is significant variation in the priorities of employees in different age groups and between genders. Younger employees, under 30, are primarily focused on salary height due to the need for financial stability in the early stage of their career. Employees aged between 30 and 40 strive to achieve a balance between salary and long-term security, with a strong focus on the quality of working life, flexibility, and the opportunity for professional development. Older employees, over 40, give priority to long-term stability and benefits, considering smaller changes in salary as less important compared to long-term security. Regarding gender, male employees tend to be more aggressive in negotiating salaries and seeking additional incentives, including bonuses and financial benefits. In contrast, female employees often strive for a balance between work and personal life, with greater interest in flexible working hours and benefits that support family needs. These findings highlight the importance of tailoring compensation packages and benefits to the needs of employees at different life stages and based on their gender, in order to maximize satisfaction and efficiency in IT companies. Based on the analysis of the impact of experience, education, and position in the company on employee preferences regarding salaries and incentives, we can conclude that there is a differentiated approach to compensation based on these factors. In terms of experience, less experienced employees (0-3 years of experience) are motivated by higher salaries and bonuses due to the desire for rapid professional advancement. Employees with 3-5 years of experience value a balance between salary and benefits, while focusing on additional perks that contribute to quality of life. Employees with more than 5 years of experience seek greater security and long-term benefits. Regarding education, employees with higher degrees (master’s or doctoral) expect higher salaries and incentives. Those with vocational education may be more interested in flexible working hours and working from home, while employees with a bachelor’s degree seek opportunities for advancement and training. As for the position within the company, managers expect higher salaries and bonuses due to greater responsibility, while operational staff at lower levels of the hierarchy value additional benefits and the work environment more. In conclusion, these findings indicate the importance of tailoring compensation and benefit strategies to individual employee needs, taking into account their experience, education, and position within the company, in order to maximize satisfaction and loyalty in IT companies.