Journal of Interdisciplinary Perspectives

ISSN Print: 2984-8288, ISSN Online: 2984-8385

Vol. 2, No. 7, pp. 425-431, July 2024

Evaluating the Influence of the Compensation and Position

Classification System (CPCS) on Job Satisfaction and
Performance among SSS Rank-and-File Employees
Renato C. Quiobe
Social Security System – Bais Branch, Bais City, Negros Oriental, Philippines

Author Email: [email protected]

Dated received: May 10, 2024 Originality: 98%

Date revised: May 21, 2024 Grammarly Score: 99%
Date accepted: May 25, 2024 Similarity: 2%

Recommended citation:
Quiobe, R. (2024). Evaluating the influence of the compensation and position classification system (CPCS) on job
satisfaction and performance among SSS rank-and-file employees. Journal of Interdisciplinary Perspectives, 2(7),
425-431. https://doi.org/10.69569/jip.2024.0195

Abstract. This study aimed to identify the perceptions of the SSS rank-and-file employees on the
Compensation and Position Classification System (CPCS) and how they relate to the employees’ job
satisfaction and performance. The researcher utilized the descriptive-correlational survey and employed the
random sampling technique in identifying the 118 employees from the SSS West 1 Division. The researcher
used a validated questionnaire with the following Cronbach’s Alpha coefficients: 0.941 for the perceptof the
Compensation and Position Classification System (CPCS) and 0.918 for the job satisfaction. Findings suggest
a moderate agreement among employees regarding the benefits and compensation structure under the
Compensation and Position Classification System (CPCS). Additionally, the study reveals high job
satisfaction and very satisfactory job performance among SSS rank-and-file employees. Importantly,
significant correlations emerge between employees’ perceptions on the Compofsation and Position
Classification System (CPCS) and both their job satisfaction and performance levels. These findings
underscore the importance of understanding employee perspectives on the Compensation and Position
Classification System (CPCS) and its implications for organizational satisfaction and effectiveness.

Keywords: SSS rank-and-file employees; Compensation and position classification system; Job satisfaction;
Job performance.

1.0 Introduction
Establishing a standardized salary structure is an important and globally significant challenge in the modern
organizational management landscape. In a company, incentives and employee motivation play a vital role as
they can be employed to steer employees toward achieving the organization's goals (Asaari et al., 2019). The
Philippine Statistics Authority (PSA) released the most recent data on the 2022 Occupational Wages Survey (OWS)
on September 22, 2023, showing that the average monthly salary for time-rated employees working full-time in
193 tracked occupations across selected business industries was PhP 18,423. This represents a rise of 11.7 percent
from the average monthly pay rate of PhP 16,486 for these workers in 2020 and 1.7 percent from PhP 18,108 in
2018 (Philippine Statistics Authority, 2023). The amount is relatively low considering the current inflation rate.

Furthermore, Former Philippine President Rodrigo R. Duterte approved the Compensation and Position
Classification System (CPCS) on October 1, 2021. In accordance with the duties and requirements associated with
their positions, this Executive Order (EO) No. 150 of 2021 sets uniform pay ranges for officials and staff of
Government-Owned and Controlled Corporations (GOCCs). In order to attract, engage, and retain talent while
remaining compliant with current minimum wage regulations, the CPCS was established to ensure that the entire

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License (CC BY-NC 4.0).
compensation structure would, generally speaking, be identical to that of the private sector undertaking
comparable work (Malacañang Records Office, 2021).

While previous research has investigated the influence of salary standardization law on teachers' socioeconomic
status, work performance, motivation, and job satisfaction (refer to studies by Bajarin & Gonzales, 2019; and Ali,
2021), this study is unique in that it looks directly at how the CPCS affects rank-and-file employees' performance
and job satisfaction within the Social Security System (SSS).

2.0 Methodology
2.1 Research Design
The study employed a descriptive-correlational survey methodology. It was descriptive as it aimed to understand
(a) the perceptions of rank-and-file employees regarding the CPCS, (b) their level of job satisfaction, and (c) their
job performance. However, given the interconnectedness of these factors, it also had a correlational aspect.

2.2 Research Participants

The participants in the study were regular rank-and-file employees of the SSS Visayas West 1 Division who were
appointed and assumed their positions no later than October 1, 2021, coinciding with the implementation of the
CPCS. 118 respondents were sampled out of the 159 rank-and-file employees, excluding SSS Dumaguete Branch,
where the dry run was conducted.

2.3 Research Instrument

The researcher utilized a questionnaire and the Individual Performance and Commitment Review (IPCR) form
during the first and second rating periods of 2022. The questionnaire, which was self-developed, underwent
validation by at least three experts in business administration. Furthermore, the reliability of the survey
instrument was evaluated by testing it on 24 respondents from the SSS Dumaguete Branch using the Cronbach’s
Alpha Test. The results indicated Cronbach’s Alpha Coefficients of 0.941 for perceptions regarding CPCS and
0.918 for job satisfaction. These coefficients indicate consistency in responses, confirming the reliability of the
items.

2.4 Data Gathering Procedure

This study used specific steps to ensure proper protocol in gathering data. The Vice President of the SSS Visayas
West 1 Division received a formal written request for permission to conduct the study after it was approved by
the Foundation University graduate school's dean. The authorized and signed request was then sent to the SSS
Branches' administrative staff in order to distribute the survey or questionnaire to the relevant rank-and-file
employees. The researcher discussed the significance and goal of the study with the administrative personnel of
the SSS branches while the questionnaires were sent through courier. The administrative staff then relayed the
instructions to the target respondents upon distribution. Once the respondents completed the surveys, they were
retrieved. Subsequently, the data was totaled, examined, and explained.

The collected responses were tabulated and assessed according to predetermined criteria for data analysis. A scale
ranging from 1 to 5 was utilized to describe the perceptions of rank-and-file employees and their level of job
satisfaction, with corresponding verbal descriptions and extents of perception provided. Statistical tools such as
Weighted Mean, Mean, and Spearman Rank Correlation Coefficient were employed to interpret the data and
identify patterns or trends. These analytical techniques enabled the researcher to draw meaningful conclusions
regarding the influence of the Compensation and Position Classification System (CPCS) on job satisfaction and
performance among SSS rank-and-file employees.

2.5 Ethical Considerations

This research study followed ethical guidelines. Throughout the study, the researcher ensured all necessary ethical
standards were met. Maintaining confidentiality was a priority since the study participants were human subjects.
Protecting their privacy and dignity was crucial, along with minimizing any risks to participants.

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3.0 Results and Discussion
3.1 Perception of SSS Rank-and-File Employees on the CPCS
Table 1 illustrates the perception of SSS rank-and-file employees regarding the CPCS, which provides a
standardized compensation structure according to their job description and job level.

Table 1. Perception of SSS Rank-and-File Employees on the CPCS (n = 118)

% of Employees with
Indicators 𝐰𝐱̄ VD EoP
SA and A Responses
1. Reviewing and enhancing the existing CPCS compensation structure will enable 4.17 A H 79.66
the employees to perform better.
2. Competent employees can be attracted & retained by the attractive pay & benefit 3.11 MA M 33.90
package offered by the CPCS.
3. My work-related experience and qualifications are appropriately compensated for 3.11 MA M 37.29
under the existing CPCS compensation and benefit package.
4. The CPCS's existing benefit and compensation package is sufficient to cover the 3.07 MA M 33.90
continuous expense of living.
5. The CPCS offers a competitive compensation and benefit package in comparison 2.96 MA M 31.36
to other comparable GOCCs.
6. My current salary is in line with what I believe it should be. 2.96 MA M 30.51
7. Better performance is encouraged and rewarded by the existing CPCS benefit and 2.92 MA M 26.27
compensation package.
8. The CPCS offers a reasonable benefit & compensation package. 2.88 MA M 21.19
9. The CPCS provides fair and reasonable compensation for every position and level 2.85 MA M 24.58
in the organization.
10. The ability to achieve self-interests like purchasing a car or developing my own 2.76 MA M 23.73
home is made possible by the CPCS compensation.
Composite 3.08 MA M

As depicted in the table, the majority of SSS rank-and-file employees "agree" that reviewing and enhancing the
existing CPCS compensation structure will enable them to perform better (wx ̄ = 4.17), which ranks first and is the
only indicator that stood out among all other indicators. This finding suggests that addressing and potentially
revising the compensation structure could yield positive outcomes for employee performance, motivation, and
overall organizational effectiveness. It underscores the importance of regularly assessing and adapting
compensation practices to meet the evolving needs and expectations of employees. The table further reveals that
there are 79.66% of the employees who generally display positive views on the CPCS. Either they strongly agree
or agree that “reviewing and enhancing the existing CPCS compensation structure will enable them to perform
better”. This result affirms the statement of Simbolon et al. (2023) that employee performance is favorably
impacted by work-life balance, compensation, and human resource planning. This was also emphasized by
Rasheed et al. (2020), who pointed out that the perception of equitable compensation and job design by employees
is positively connected with their job motivation.

In addition to this, these employees “moderately agree” on the idea that competent employees can be attracted
and retained by the attractive pay and benefit package offered by the CPCS, with a weighted mean of 3.11. The
employees are somehow convinced that competitive pay and benefits can retain competent employees, suggesting
room for improvement in perceived attractiveness. This result is an affirmation of the statement of Linh et al.
(2022) that employee efficiency and improved work quality can be achieved by implementing a just compensation
and reward system. It is also apparent in the table that 33.90% of the rank-and-file employees have “strongly
agree” and “agree” responses on the mentioned indicators. This signifies that one-third of the rank-and-file
employees have a positive outlook on the CPCS.

The table also exposes that they “moderately agree” on the notion that their work-related experience and
qualifications are appropriately compensated for under the existing CPCS compensation and benefit package with
the same weighted mean of 3.11. This viewpoint emphasizes the significance of fair compensation policies that
acknowledge and compensate staff members based on their credentials and accomplishments, thus promoting
organizational equity and justice.

The table also shows that the SSS rank-and-file employees "moderately agree" with the notion that the CPCS's
existing benefit and compensation package is sufficient to cover the continuous expense of living (wx ̄ = 3.07) and

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with the perception that the CPCS gives them the ability to achieve self-interests like purchasing a car or
developing their own homes (wx ̄ = 2.76), which ranks last among all indicators. The employees feel their current
salaries are somewhat aligned with their expectations, although there may be room for improvement. This is
affirmed by Bandono et al. (2022), who state that nowadays, employees in any institution are primarily concerned
with the issue of wages and remuneration.

The table also reflects that SSS rank-and-file employees have a “moderate” extent of perception that the CPCS
offers a competitive compensation and benefit package in comparison to other comparable GOCCs, with a
weighted mean of 2.96. They also “moderately” agree that their current salary is in line with what they believe it
should be (wx ̄ = 2.96). The data point to possible areas for development to further strengthen the compensation
package's perceived competitiveness in the corporate environment, which was also emphasized by Quan et al.
(2022) that one of the most important parts of the socioeconomic policy framework is the wage policy, wherein it
has a direct impact on the labor market, macroeconomic balances, and the lives of wage earners.

The table further displays that the SSS rank-and-file employees have a “moderate” degree of perception of the
idea that better performance is encouraged and rewarded by the existing CPCS benefit and compensation package
(wx ̄ = 2.92). The same is true with the notion that the CPCS offers a reasonable benefit and compensation package
(wx ̄ = 2.88) and that the CPCS provides fair and reasonable compensation for every position and level in the
organization, with a weighted mean of 2.85. The respondents feel like if they perform well, the organization
rewards them fairly, but they are not completely sure. Atra et al. (2022) confirmed this, affirming that both
competency and compensation significantly influence employee performance, which is further supported by the
statement of Sadikin et al. (2023), who noted that compensation and motivation levels greatly influence the success
of teachers in private schools.

3.2 Level of Job Satisfaction of SSS Rank-and-File Employees

Table 2 reveals the level of job satisfaction among SSS rank-and-file employees. Job satisfaction pertains to the
level of happiness or contentment that employees experience regarding their jobs and work environment.

Table 2. Level of Job Satisfaction of SSS Rank-and-File Employees (n = 118)

Indicators 𝐰𝐱̄ VD LoS
1. I have a positive relationship with my colleagues and immediate head. 4.19 A H
2. I enjoy my work and find it meaningful. 4.02 A H
3. I understand what is needed to achieve my deliverables. 3.96 A H
4. My role aligns with my abilities and job description. 3.75 A H
5. The work environment fosters productivity and collaboration. 3.69 A H
6. Tasks are fairly distributed within my team. 3.63 A H
7. I have the autonomy in how I carry out tasks. 3.62 A H
8. My job provides security and stability. 3.59 A H
9. The organization supports my professional growth and well-being. 3.54 A H
10. I have enough resources and manageable workload. 3.43 A H
Composite 3.74 A H

The table indicates that the SSS rank-and-file employees demonstrate a “high” level of satisfaction in terms of
having a positive relationship with their colleagues and immediate head (wx ̄ = 4.19), which ranks first among all
other indicators. This suggests that employees report a high level of satisfaction in their relationships with
colleagues and immediate supervisors, indicating a supportive and collaborative work environment.

In addition, the SSS rank-and-file employees “agree” on the notion that they enjoy their work and find it
meaningful, with a weighted mean of 4.02. This indicates that they find their work enjoyable and meaningful,
contributing to overall job satisfaction and engagement. This finding affirms the study of Haitao (2022) stating
that the recognition of employees by managers or supervisors affects their job happiness because the company
values their existence, which is also in parallel with the study of Dreer (2024) emphasizing that job satisfaction
and subsequent retention are significantly influenced by their job-related well-being, particularly by good feelings
experienced at work.

Meanwhile, SSS rank-and-file employees “agree” that they understand what is needed to achieve their
deliverables (wx ̄ = 3.96). They demonstrate a clear understanding of their job responsibilities and deliverables,
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fostering a sense of clarity and purpose in their roles. The data also show that they “agree” on the notion that their
respective role aligns with their abilities and job description (wx ̄ = 3.75), which means that they highly perceive
alignment between their job roles, abilities, and job descriptions, indicating a good fit between individual
capabilities and organizational expectations. This result affirms the statement of Karyatun et al. (2023), who stress
that employee work satisfaction increases with the effectiveness with which a company implements sound
corporate governance. As a result, highly motivated employees excel in achieving organizational goals, while
undermotivated workers struggle and may deviate from objectives (Orpia, 2022).

Additionally, the employees feel that their work environment fosters productivity and collaboration (wx ̄ = 3.69),
which denotes that the work environment is perceived as conducive to productivity and collaboration, enhancing
job satisfaction and morale among them. Furthermore, they “agree” on the idea that tasks are fairly distributed
within their team (wx ̄ = 3.63) and on the notion that they have enough resources and manageable workload (wx ̄
= 3.43), which simply means that their responsibilities are perceived to be fairly distributed within teams,
promoting equity and teamwork among employees, and that they feel that they have enough resources and a
manageable workload to prevent job burnout. This is in consonance with the study by Ortan et al. (2021), which
states that a productive workplace enhances job satisfaction, well-being, and teacher retention while reducing
attrition, burnout, emotional exhaustion, and teacher turnover.

Furthermore, the employees also show a “high” level of agreement on the notion that their current job provides
security and stability (wx ̄ = 3.59) and that they also “agree” that the organization supports their professional
growth and well-being (wx ̄ = 3.54). The data implies that these employees feel secure about their jobs, which is
crucial for overall job satisfaction and well-being.

3.3 SSS Rank-and-File Employees’ Job Performance

Table 3 presents the level of job performance of SSS rank-and-file workers in the SSS Visayas West 1 Division for
the first and second semesters of 2022, as documented in their individual Performance and Commitment Review
(IPCR) forms. Job performance refers to how successfully a worker performs his duties. It matters how well he
carries out his responsibilities, achieves his objectives, and supports the company.

Table 3. SSS Rank-and-File Employees’ Job Performance (n = 118)

1st Sem. IPCR Rating 2nd Sem. IPCR Rating
Weighted Score Adjectival Rating
f % f %
98% – 100% Outstanding (O) 58 49.15 64 54.24
90% – 97.99% Very Satisfactory (VS) 58 9.15 53 44.91
75% – 89.99% Satisfactory (S) 2 1.70 1 0.85
Mean 96.26 (VS) 96.53 (VS)
SD 3.08 2.82

The table shows that the job performance of the SSS rank-and-file employees demonstrated a “very satisfactory”
level with ratings of 96.26% in the first semester and 96.53% in the second semester. This consistency in
performance reflects positively on the effectiveness of performance management systems in the organization and
the overall dedication and competence of the whole SSS workforce. This finding is a confirmation of the study by
Susanto et al. (2023), which pointed out that a strong sense of satisfaction for the task accomplished encourages
workers to work more productively and generate higher-quality results.

3.4 Correlation between the Perception of the SSS Rank-and-File Employees on CPCS and Their Level of Job
Satisfaction
Table 4 presents the data to identify the relationship between the perception of the SSS rank-and-file employees
regarding CPCS and their level of job satisfaction.

Table 4. Relationship between the Perception of the SSS Rank-and-File Employees on CPCS and Their Level of Job Satisfaction (n = 118)
Variables rs p-value Decision Remark
Perception on CPCS and Level of Job Satisfaction 0.482 <.001 Reject Ho1 Significant
Level of significance = 0.05

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Utilizing Spearman Rank Order Correlation, the data indicate that the p-value (<.001) is below the level of
significance (0.05). This outcome suggests rejecting the null hypothesis. Therefore, there exists a significant
relationship between the perception of SSS rank-and-file employees regarding CPCS and their level of job
satisfaction. It implies that their level of job satisfaction is influenced by their perception of the CPCS. In other
words, the higher the perception of the employees on CPCS is, the greater their extent of job satisfaction.

The perception of the CPCS significantly affects job satisfaction among SSS rank-and-file employees. A positive
perception of the CPCS correlates with higher job satisfaction levels. This aligns with the study of Ali and Anwar
(2021) pointing out, remuneration as a motivator significantly improves job satisfaction. Additionally, Asaari et
al. (2019) also expressed that employee motivation will increase in proportion to compensation levels, which was
also established in the findings of Bajarin and Gonzales (2019) that public school teachers' job satisfaction,
motivation, and productivity are all significantly impacted by the Salary Standardization Law.

3.5 Correlation between the Perception of the SSS Rank-and-File Employees on CPCS and Their Extent of Job
Performance
Table 5 reveals a significant relationship (p = 0.018 < α = 0.05) between the perception of the SSS rank-and-file
employees regarding CPCS and their extent of job performance.

Table 5. Relationship between the Perception of the SSS Rank-and-File Employees on CPCS and Their Extent of Job Performance (n = 118)
Variables rs p-value Decision Remark
Perception on CPCS and Extent of Job Performance 0.216 0.018 Reject Ho2 Significant

This finding connotes that employees who perceive the CPCS highly tend to display better job performance. A
positive correlation between pay and job performance has been verified by the study of Zafar et al. (2021), which
reveals that public university administration should give employee salaries more thought as this will improve
work performance. Furthermore, the statement of Al-Ali et al. (2019) affirms that increased employee productivity
can be attributed to factors like recognition for meeting goals and receiving fair compensation aligned with their
workload. Therefore, when compensation schemes and performance evaluations satisfy employees' demands,
they will be more motivated at work and less likely to think about leaving the company (Aburumman et al., 2020).

4.0 Conclusion
This study has contributed significantly to advancing our understanding of the relationship between the
Compensation and Position Classification System (CPCS), employee satisfaction, and organizational performance
within the context of the Social Security System (SSS). The positive perception of the CPCS reflects fair and
adequate compensation, boosting morale, motivation, and retention. Addressing areas needing improvement, like
enhancing and reviewing the CPCS, is vital for ensuring employee satisfaction and retention, thus enhancing
organizational performance and engagement. On another note, the high job satisfaction among SSS rank-and-file
employees indicates a supportive work environment fostering positive relationships, meaningful work, and
growth opportunities. This environment enhances employee well-being, productivity, and collaboration, which
are vital for achieving organizational goals and fostering a high-performance culture. Future research could delve
deeper into specific organizational practices and interventions that contribute to fostering such supportive work
environments, thereby enriching our understanding of effective employee engagement strategies. Furthermore,
the consistently high job performance ratings, with most employees achieving “Outstanding” or “Very
Satisfactory” ratings, highlight a competent and motivated workforce aligned with organizational objectives. This
underscores the effectiveness of the organization's performance management system and emphasizes the
importance of continuous monitoring and recognition initiatives to sustain and enhance employee performance.
Future studies could explore innovative performance management approaches or examine the impact of specific
interventions on employee performance outcomes, offering valuable insights for organizational leaders and
practitioners.

5.0 Contributions of Authors

This study was conceptualized, designed, analyzed, written, and revised by the author. The adviser, Dr. Maria Chona Z. Futala n of Foundation
University, provided guidance throughout the research process and reviewed and approved the final version of the ma nuscript.

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6.0 Funding
This research was conducted without financial assistance from any funding agency.

7.0 Conflict of Interests

The author declared that he has no conflicts of interest as far as this study is concerned.

8.0 Acknowledgment
The author extends heartfelt gratitude to his adviser, Dr. Maria Chona Z. Futalan of Foundation University, Dumaguete City, P hilippines, and
to his wife, Darlene Ann, and daughter, Bella Rhian, for their unwavering support, both financially and emotionally, which greatly contributed
to the success of this study.

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