SALARIES and Work Flexibility as Predictors of the Individual Work Performance of the Business Process Outsourcing EMPLOYEES

Abstract

This study examined whether salaries and work flexibility predict the individual work performance of Business Process Outsourcing (BPO) employees in Davao City. Using a descriptive-correlational design, data were collected from 300 respondents across selected BPO companies using stratified systematic random sampling. Statistical tools, including the mean, standard deviation, Pearson's r, and regression analysis, were used to interpret the data. Results showed that the level of salaries, work flexibility, and individual work performance were all rated very high. All indicators of individual work performance—task, contextual, and productive behavior—reflected strong positive ratings. Both salaries and work flexibility were significantly related to individual work performance, with work flexibility emerging as the stronger predictor. Combined, these two variables explained 21.2% of the variation in performance. The findings affirm that fair compensation and flexible work arrangements enhance individual work performance. These support the principles of Self-Determination Theory and Campbell’s Theory of Performance, highlighting the importance of autonomy, motivation, and supportive work environments in boosting productivity.