ESTABLISHING THE RELATIONSHIP OF ORGANIZATIONAL COMMUNICATION, PAY AND BENEFITS AND JOB SATISFACTION AS COMPONENTS OF EMPLOYEE MOTIVATION TOWARDS EMPLOYEE ENGAGEMENT

Abstract

Employee engagement is widely recognized as a critical driver of organizational success across industries. The sustainability and performance of any business depend heavily on how engaged its employees are in pursuing strategic goals. This study examines the relationship between key factors influencing employee engagement within an insurance agency, specifically Klang Vega Darma Agency under AIA Berhad. The factors investigated include organizational communication, job satisfaction, and pay and benefits. Data were collected using questionnaires distributed to insurance agents in the agency. Seventy-five responses were received, and after applying exclusion criteria, eight managerial-level respondents were removed to avoid bias, as managerial and non-managerial employees may perceive the factors differently. The final sample was analyzed using SPSS to determine the relationship between the variables and employee engagement. The findings show statistically significant and positive relationships for all three hypotheses. Organizational communication (r = 0.74), job satisfaction (r = 0.79), and pay and benefits (r = 0.65) were all strongly related to employee engagement, with organizational communication emerging as the strongest predictor. Despite limitations related to time and cost, the study provides useful insights, and future research could explore similar factors in other insurance companies or include additional variables to deepen understanding of employee engagement in the Malaysian insurance sector.