GOD-FEARING RECIPROCATING COMMITTING TO EXCELLENCE 1

CHAPTER I

THE PROBLEM AND ITS BACKGROUND

1.1. Introduction

In mid-twentieth century, employee benefits are different part of

employees' compensation package. Employee Benefits is a form of indirect

or non-cash compensation to an employee that have been defined by

Bureau of Labor Statistics (BLS). In the Unites States they give benefits to

an employee which is required by law and regulation, they may be optional

such as paid time-off or savings for retirements, and an employer

contributes to social security and health care benefits. In order to lead

financial performance and boost employees loyalty organization offer

benefits. (Chan, Gee & steiner,2000;Rutigliano, 1986).

Healthcare and retirement is a part of modern work benefits which

began to take shape in Germany in 19 th century as forms of social

protections. During Industrial Revolution, paid time-off was adopted by

United States; healthcare during World War and more. In the United Sates,

they become the top of popularity in the 1980’s partly because they give tax

treatment not only for certain benefits but also because of the aging and
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gender balancing of workforce (Rhine, 1987). They also use their absences

from work because they divided into vacation holidays and sick leave and

into single inclusive “paid time-off” bundle.

Workers become responsible for their work because they receive

benefits and they can also managed their own time away from work.

Offering benefits to an employee is a centuries-old practice in the United

States. In america, employee benefits had been expected and implanted to

an employment contract.

In the Philippines, employers also practice giving benefits even the

government made a law just so the employees under any status shall

receive benefits. Under the Labor Code of the Philippines, employees are

required to provide compensation and also benefits. The benefits that

should be given to the employees are holidays and overtime pay, work

during holidays and non- holidays, service incentives and many more. But

some organization offers benefits that are not mandated by law and one of

those organizations are BPO Companies.

Business Process Outsourcing started in the Philippines with

Accenture in 1992 thanks to Frank Holz, the Partner responsible for

developing and marketing the first Global Resource Center in Manila.

Currently its main facility (one of eight) is located at the Robinsons Cybergate
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2 Tower in Mandaluyong City, the facility houses around 5,000 seats of a total

of 10,000 seats currently in the country. As a sub-sector of the business

process outsourcing (BPO) industry, call centers in the Philippines remain as a

major contributor to the country’s economy. This is despite the looming

challenges of integrating artificial intelligence to basic voice and non-voice

processes.

There are popular BPO companies here in the Philippines like

Teleperformance, Convergys, Concentrix, VXI, and etc. VXI Global Solutions

is a leading provider of business process and information technology

outsourcing offering comprehensive services to its clients. The company

specializes in call center and BPO services, software development, quality

assurance testing, and infrastructure outsourcing. It is originated in the United

States, VXI employs 10,000 people around the world including locations in

China and the Philippines.VXI is top 50 among the telemarketing companies

in the United States. Providing benefits to employee can make them more

loyal and perform better inside the organization.

Knowing the benefits of employees lead us to conduct a study on how

benefits affect their loyalty and performance inside the organization. It helps

the company to know how they will improve the distribution of benefits that

will increase the level of loyalty and performance of the employees inside the

organization.
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1.2. Conceptual Framework

Offering benefits to an employee is vital because it shows them that

you are giving importance not only to their health but their future. A solid

employee benefit package can be an advantage to the company in attracting

talents and retaining their old employees. Employees that received good

benefits might even increase their level of loyalty and their overall

performance.

In this study the researchers used Input Process Output (IPO) model

system approach. The distributor’s demographic profile is used as variable

such as Age, Length of Service, Position, Gender and benefits of employees

and how it affects their loyalty and performance. The next frame shows the

process of getting information from the internet, book references and

conducting using survey questionnaire to create statistical analysis from the

respondent. The output frame illustrates how the respondents loyalty and

performance may depend on the benefits they receive from the company.

1.2 Conceptual Framework

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INPUT PROCESS OUTPUT

Profile of the
respondents. Survey The respondents
a. Age questionnaire loyalty varies on
b. Educational the benefits they
Attainment Book references receive from the
c. Position company.
d. Gender Internet
The respondents
Benefits of employees. Statistical performance was
analysis affected by the
Company benefit that benefits the
affects employees in company provide
terms of:
Loyalty
Performance

Figure 1. Research Diagram

The output shows the respondents loyalty varies on the benefits they
receive from the company and the respondents performance was affected by
the benefits the company provide.
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1.3. Statement of the Problem

The study sought to determine Benefits of Employees and its Impact

towards their Loyalty and Performance in VXI Munoz.

Specially, the following question will be answered:

1. What is the demographic profile in terms of:

a. Age

b. Position

c. Gender

d. Length of service

2. What are the benefits of employees?

3. How does the benefit affects the employees in terms of:

a. Loyalty

b. Performance
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1.4. Scope and Delimitation of the Study

This study aims to determine Benefits of Employees and its Impact

towards their Loyalty and Performance in VXI Munoz. It is limited on Call

Center Agent of VXI with 100 sample respondents using close ended survey.

The main purpose is to point out the effect of benefits toward the loyalty and

performance of each employees and to determine whether these benefits

may hinder or help them accomplish their daily tasks.

The study considers every aspect of Call Center agents personal

information such as age, length of service, position and gender. Each

respondent are given the same questionnaires to answer. And this study

focuses on the Call Center Agent of VXI.

1.5. Significance of the Study

The researchers believe that this study will be of great importance to

the company (VXI). The result would bring awareness as to how the benefits

given by the employer greatly affects an employees performance and loyalty.

This research will benefit the following:

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1. Students - This study is will give the student a brief understanding on what

benefits employees receive inside VXI. Also it will help them on what

benefits to expect once they applied for a job inside the company.

2. VXI – By knowing the impact of benefits given to employees on their

performance, it will help the company understand their employees better.

In addition, this study will help the company to know how they can

motivate their employees to perform better in the company.

3. Employees - This study is important for the employees especially the part

where the benefits received are discussed. It will give them the opportunity

to assess how the company deals with their workers. Also, it will provide

the employees a better understanding on how receiving benefits affects

their loyalty and performance.

4. Future Researchers - This study may serve as a basis for future

researchers who aim to have a deeper understanding about the subject.

They will gain insights on the contents of this investigation.

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1.6. Definition of Terms

 Benefits - Something extra (such as vacation time or health insurance) that is

given by the employer to workers in addition to their regular pay.

 Business Process Outsourcing (BPO) - is a subset of outsourcing that

involves contracting the operations and responsibilities for a particular

business process to a third-party service provider.

 Call Center Agent - is a person who handles incoming or outgoing customer

calls for a business.

 Contract - a legal agreement between people, companies, etc.

Descriptive - providing facts about how a language is actually used rather than rules
that tell people how it should be used

 Labor Law - Area of law most commonly relating to the relationship between

trade unions, employers and government.

 Provision - Something that is done in advance to prepare for something else.

 VXI- VXI Global Solutions, formerly Multi-Cultural Marketing, was initially

created as an integrated customer contact center in 1998. ... With over

30,000 people across 42 locations worldwide, VXI Global Solutions is one of

the fastest growing, privately held business services organizations in the

United States.
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 The Bureau of Labor Statistics (BLS) - is a unit of the United States

Department of Labor. It is the principal fact-finding agency for the U.S.

government in the broad field of labor economics and statistics and serves as

a principal agency of the U.S. Federal Statistical System.

 Industrial Revolution- is defined as the changes in manufacturing and

transportation that began with fewer things being made by hand but instead

made using machines in larger-scale factories.

 Paid time off or personal time off (PTO)- is a policy in some employee

handbooks that provides a bank of hours in which the employer pools sick

days, vacation days, and personal days that allows employees to use as the

need or desire arises.

 The Labor Code of the Philippines - is the legal code governing employment

practices and labor relations in the Philippines. It was enacted on Labor day,

May 1, 1974 by Late President of the Philippines Ferdinand Marcos in the

exercise of his then extant legislative powers.

 Vital- extremely important

Intelligence- the ability to learn or understand things or to deal with new or

difficult situation

 Statistical analysis - is a component of data analytics. In the context of

business intelligence (BI), statistical analysis involves collecting and

scrutinizing every data sample in a set of items from which samples can be
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drawn. A sample, in statistics, is a representative selection drawn from a total

population.

 Perks- to gain in vigour or cheerfulness especially after a period of weakness

or depression

 Fringe - an area of activity that is related to but not part of whatever is central

or most widely accepted : a group of people with extreme views or unpopular

opinions

 Salaries - an amount of money that an employee is paid each year

 Wages - an amount of money that a worker is paid based on the number of

hours, days, etc., that are worked

 Society for Human Resource Management (SHRM) - is the world's largest

association dedicated to human resource management, with around 260,000

members in more than 140 countries.

 Presidential decree - A decree is a rule of law usually issued by a head of

state (such as the president of a republic or a monarch), according to certain

procedures (usually established in a constitution). It has the force of law. The

particular term used for this concept may vary from country to country

 Productivity- the rate at which goods are produced or work is completed

 Economic Relation - First the word “Relationship” being defined as connection

or association; the condition of being related. Second is “Economics” being

defined as the study of resource allocation, distribution and consumption; of

capital and investment; and of management of the factors of production

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 The American Psychological Association (APA) - is the largest professional

and scientific organization of psychologists in the United States.

 Paternity - (especially in legal contexts) the state of being someone's father.

 Maternity - Motherhood. The period during pregnancy and shortly after

childbirth.

 Positive Self-Expression - Casual dress can send positive signals to

employees that their self-expression and different opinions matter.

 Productivity: Feeling comfortable in casual dress can reduce these feelings

and increases focus, giving you a more productive workplace

 Tardiness - the quality or fact of being late; lateness

 HMO – stands for Health maintenance Organization. It is a prepaid health

care system that provides or arranges managed care for self-funded health

care benefit plans, individuals with the health care providers (hospitals,

doctors, etc.. You will be given a HEALTH CARD you can bring along and

use in accredited providers only.

 .

 Quantitative - of or relating to how much there is of something : of or relating

to the quantity or amount of something

 Statistical - of, relating to, based on, or employing the principles of statistics

 Validity - acceptable according to the law.

 Reliability - the extent to which an experiment, test, or measuring procedure

yields the same results

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CHAPTER II

REVIEW OF RELATED LITERATURE AND STUDIES

2.1 Research Literature about Employee’s Benefits

Employee benefits are also known as perks or fringe benefits that are

given to an employee by the company over and above salaries and wages.

Employee benefits includes but are not limited to health benefits, incentives,

maternity, 13th month pay, travel, SSS, PhilHealth and Pag-Ibig Benefits.

Some of this benefits are mandated by the law (e.g SSS and PhilHealth)

while some of them are optional depending on the company (e.g travel

benefits). This benefits are given to attract and retain employees that can

help with the company’s further growth. It is said that benefits contribute to a

more employee engagement while making them feel secure and

encouraging them to stay in the company, even during tough times.(“The

Importance of Employee Benefits”,2018) It serves as a kind of assurance for

the employee that they are taken care of within the organization. Also, giving

benefit packages to an employee shows how invested you are for their well-

being which in return makes them spend great amount working for you and
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practice productivity within themselves everyday.(“The Importance of

Employee Benefits”,2018).

Research states that benefit packages plays a vital role in recruiting

new employees and retaining the talents inside the organization. According

to the survey they (SHRM) conducted on job satisfaction and engagement,

92% of employees said that benefits are more important with regards to

their overall satisfaction.They also found out that benefit packages is the top

reason why an employee may leave or stay inside the organization. They

stated that employee benefit is like a double edge sword it can either cost or

save a significant amount of money correlated with turnover. It also

appeared on their 2017 survey on the strategic use of benefits, they found

out that using a strategic approach in their benefits program makes an

employee more satisfied and perform better compared to the employees

from other organization. This simply shows that the employees benefits

matter more than their wages and can contribute to increase company’s

overall performance once used accordingly. SHRM The Society for Human

Resource (2018)

The Presidential Decree No. 442, governs all employee-employer

relations, their rights and obligations. Under the Philippine Labor Code,

employees has the right to monetary benefits like minimum wage, 13 th month
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pay, overtime pay etc. In addition, the employer are obligated to be a

member of Pag-IBIG Fund, PhilHealth and SSS. They are required to remiit

monthly contribution to these government offices on behalf of the employees

in their company. This can guarantee that the employees have access to

affordable house financing, health insurance and social security benefits as

mandated by the law. (Book V- Labor Relation)

An interesting research by economists at the University of Warwick in

England shows that there really is a positive reaction between happy

employee and productivity in job. In other words, it would make sense that

companies invest in employees happiness and their well-being. A report

made by Indian Council for Research on International Economic Relations

pointed that a well designed wellness programme for employees can reduce

health plan cost, sick leave, disability pay and worker’s compensation.

Incidentally, 98% of employees who have undergone preventive health

check-ups found out that it is beneficial in terms of higher productivity at

work and better quality of life. Kalakuntala, K., (2018)

A study performed by the American Psychological Association shows

that employees perform with a better result when they feel valued and

appreciated by the management. Offering rewards, awards and performance

bonuses can greatly affect the employees performance. By giving them the
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following the employer can motivate the employees and at the same time

show them their appreciation for a job well done. Galic, D. (2016)

2.2 Research Literature about Different Employee’s Benefits

2.2.1 Paternity Leave

Republic Act 8187, Paternity Leave Act(1996) Paternity Leave stated

that married male employees are granted a 7 days leave with continuous

compensation. Under the condition that the spouse has delivered a child or

suffered a miscarriage. This benefit allows the husband to lend support to his

wife while she recovers.

2.2.2 Maternity Leave

Republic Act 11210 Expanded Maternity Leave states that all female

workers in government and the private sectors regardless of their civil status

or the child’s legitimacy, is granted 105 days maternity leave with

compensation. Additional 30 days can be added if the women wishes to but

it will no longer be compensated. Furthermore, if the worker qualifies as a

solo parent under Republic Act No. 8972 otherwise known as Solo Parents’

Welfare Act, the worker will be granted additional 15 days leave with pay.
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2.2.3 Vacation Leave

Vacations are important in replenishing not only the mind but the

condition of our body. It takes the mind off the stress caused by work loads as

explained by Kathleen Potempa, a professor at the University of Michigan

School of Nursing. But one report made by State of American Vacation(2017)

stated that workload is one of the big reason why employees refuses to take

vacations. Employees feared that once they returned from breaks they will

face a mountain of work, while a small number of employees refuse taking

vacation since they cant afford it. But experts say short and frequent breaks

from the office have a big impact on employees productivity . Some studies

also suggest that taking breaks twice a year can do a good job in improving

employees health condition. It is important that employees unplug themselves

from work when they are on vacation. Schulze, E.(2017)

2.2.4 Casual Dress Benefit

Casual work attire can also breakdown barriers and allow people to

bond more on a personal level breaking down hierarchy. Casual attire gives

a good impression. What does that mean? Casual work attire can make

people more at ease, that freedom to express themselves and giving people

permission to experiment and to be creative, because fashion and style are

subjective. Casual dress codes emphasize comfort, formality and conformity.

It is important to be aware of dress code understand what they mean,

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because first impression last. Although employees/workers are required to

comply with comapny standards, often times that means maintaining a

professional appearance in the office any business functions.

2.2.5 Transportation Allowance

Conveyance allowance, also called Transport Allowance is an

allowance given by the employer to their employees to compensate for their

travel form home to work and vice versa. Allowances are offered separately

form their basic wages and is not subjected to income tax. Primarily,

transportation allowance is given by the employer on if there is no

transportation provided. Once the employer offers transport(e.g company

car) transport allowance will no longer be given to the employees.

“Conveyance Allowance in India”(2019)

2.2.6 Health Benefit

There is currently 16 HMO’s in the Philippines, including MEDICard,

Intellicare, MaxiCare, PhilCare, InsularCare, Valucare and Fortunecare.

These HMOS’s cover both in and outpatients and other emergency

treatments that is delivered only by recognized doctors, clinics and hospitals.

HMO membership along with PhilHealth plan can save you quite a large

amount of money once you got confined. 15 to 30% of your bills will be

covered by PhilHealth and the rest will be paid by your selected HMO plan. It
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can also provide financial security to employees, as stated before HMO

basically cover bills in your medical procedures, emergency assistance and

most importantly your confinement. It means that employees can save the

money that is supposed to be spent for paying bills. San Pascual(n.d)

2.2.7 Bonuses and Reward

A bonus is a financial compensation given to an employee to reward

their performance inside the company. It is also used to attract not-yet

employees to join the company. Bonuses varies upon employees, entry-level

employees may receive smaller amount of bonus in comparison to the senior

level executives. It can also be given as incentives to employees. It also

serves as a form of gratitude to those employees that stayed inside the

company for a long time. Though the bonuses are usually given to the

workers, some organization gives additional bonus to employees with higher

performance to avoid jealousy among the staffs. Bloomental, A.,(2019)

2.2.8 14th and 15th Month Pay

While the bill is set to add more compensation and protect the

employee’s rights, it will also be upon employer’s judgement. As stated on

Section 6, the frequency of payment of this monetary benefit shall be under

the agreed term between the employer and employee. Senator Sotto, the one

who proposed the bill even clarified on one of his interview that the bill he’s
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proposing that the employer’s are not forced to give 14 th month pay if the

company can’t afford to do so. Just like 13 th month pay, it will depend upon

the ability of the employer to or not to give 14 th month pay, and the

government ofcourse know who are capable of providing 14 th month. Serran,

K.(2016)

2.2.9 Service Incentive Leave

Some company are big hearted in terms of benefits that they offer to

their employees. But some of them decides to follow the minimum required by

the law. Sick leave, vacation leave, or emergency leaved are not required by

the labor law it depends to the company if they want to provide those benefits.

In accordance to the law, service incentive leave must be provided by the

employers to the workers who had been working for the company for atleast a

year. Aside from Service Incentive Leave, company is obligated to give

maternity leave, paternity, solo parent leave and provision for special cases

(e.g victim of violence against women). Thus, all of this leaves should paid by

the company.Gutieriez, A.(2018)

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2.1.3 Related Literature about Effect of Benefits to Employee Loyalty

Benefits are not only desirable for employees but it is also beneficial to

the company. By giving employees the benefits they need it might result to

better performance. According to one survey, 60% majority of the employees

claimed that benefit packages is very important and it affects their employer

loyalty. Some of the employees even said that they want to have the ability to

pick their own benefit packages depending on their lifestyle. Hence,

employee’s loyalty depends on what benefits the company provides them.

The better the benefits the more loyal your employee becomes and most

likely they’ll keep working for you. Actually, 35% a minor part of the

employees that took part in the survey said that developing and improving

benefit packages are one of the reason for employees retention.(Dewitt, K.,

2017)

An article says that improving benefit packages and investing on the

offering will show the employees how invested the employer is to them.

Improving benefits can reflect their loyalty, the better benefits they receive the

more loyal they are, and as a result they will work harder. While high

compensation might be a factor to attract good talents, giving them employee

benefits will keep them loyal to the company. Thus, this loyalty can highly

contribute to the company’s potential to maximize its growth. In addition, loyal

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employee are more willing to work hard with a high quality output. They are

more invested in reaching the company’s growth and success. Ansari, K.

(2018)

One research states that in employees perspective finding the right

benefit package can make him/her content. Which means if the company

desires to attract and keep top talented workers they might offer good benefit

packages.Employees also need assurance that the company can provide and

is capable in mainting benefit packages. In other words, benefit plays a vital

role in making an employee stay in a company. Offering a good package of

benefit is one way for companies to attract talented workers and make them

stay inside the organization. This way the employees has the right to choose

whether or not to stay in the organization or find a better one that suits his/her

needs as an individual. It was concluded that benefits along with good

leadership is one of the factor why an employee stays inside the company .

Horn, L. Jr.(2017)

Tardiness is one of a negative behavior of an employee, it affect not

only the other employee but company itself. It may sound exaggerating but

chronically missing or showing up late for work can cause tension within

colleagues. Thus, affecting the employees morale and company’s productivity

(Saez, A., 2018) therefore reducing tardiness is a must. (McFarlin, K., n.d) A

licensed insurance agent says that offering a reward to employees that are
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punctual and always present for work can appeal to other employees and

sooner they might do the same . Also, rewards can motivate your staff to

follow your new policy. (Saez, A., 2018)

2.1.3 Research literature about Benefit’s Impact on Employee

Performance and Productivity

An insurance company, interviewed Jennifer Benz a national expert,

speaker and author on employee benefits, she suggested that employers

should connect the design of the benefit programs with their business goals.

Employee benefits are not just medical, dental or insurance.Instead, benefits

provide a sense of security to employee and it also give opportunity to the

employer to have a strong connection with their employee . Helping them take

care of their families and finances. Benz J., (2016) said that many work

cultures are filled with high pressure and demands. As a result employees

feel stressed in trying to meet the company’s expectations. However, as an

employer paying attention to an employees health and well-being can

encourage them to perform and be productive. As stated many factors can

influence an individual’s well-being and as an employer it is good thing to

design a right mix of benefits that can help with the employee’s health and

personal needs. Ameritas(2016)

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Benefit plays a significant role to employees inside the organization.

Employee benefits are necessary and can greatly affect an employees work

attitude towards the company. When compensation and benefits are

concerned, the company should consider the total arrangement of

compensation they are providing the employees. Like benefits, compensation

gives the employee the ability whether or not to commit to the company.

Research has shown that the approach of the benefits offered by the

company can influence employee attitude. (Ayache & Naima, 2014).

Therefore the higher the benefit they receive the more committed they can

be. Rosalejos M.R.A J. et al., (2017)

Keeping employees drive to perform well with benefits is easy. But

putting a limit as to how much benefit an organization can give to motivate an

employee, versus salary increase and larger wages to preserve and attract

talented workers and keep them happy and motivated to work for you are

more difficult. As stated, giving benefits alone can be quite easy every

company can do that but taking your time to think of benefit program that is

agreeable not only for your company but also to the employee can be

something else. Thinking of benefits that will cost less while making them

happy and motivated is a good start to keep your company in competition. In

addition, satisfied employees are more likely to work for the company in an

impressive way which can produce good result. Nasibov, A., MScM(2015)
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Aside from monetary incentives, employer use non monetary

incentives in boosting employees self-actualization needs. These incentives

plays a role in satisfying psychological needs of the employees that cannot be

filled by monetary incentives alone. Studies show that recognition has a

positive effect on employees performance, either alone or with financial

rewards. As stated from one survey 78% of CEOs use performance

recognition program in rewarding their employees. Organizations use non-

monetary incentive to increase employees productivity and effectiveness.

Those incentive includes medical insurance, job enrichment, vacation &

holiday leave etc. Mamdani, K. F.,(2016)

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2.2 Synthesis and Relevance of the Related Literature and Studies

The researchers gathered information and related studies from foreign

and local authors. The findings of the study synthesized are highly relevant to

the research idea which the benefits have an impact to the loyalty and

performance of an employee. The researchers found out the importance of

company benefit to the employees and what kind of benefit that really affect

and boost the loyalty and performance of an employee.

By providing benefits can improve the ability to attract candidates and

hire new employees. Having a health benefits can secure their future. If the

employees are not satisfied with their receiving benefits they move to other

organizations with better benefit package. Company benefit is important

especially for the employees because they can give their full effort and good

performance which at the same time beneficial for the company. Lastly, the

employer will also benefit if they have a productive employee.

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CHAPTER 3

RESEARCH METHODS

3.1. Research Design

The design of this study was descriptive, quantitative design. Calderon

(2008) descriptive design is also known as statistical that describes the data

and characteristics about population or phenomenon being studied. The

researchers use descriptive design to describe the impact of receiving benefit

of employees and how it affects to their loyalty and performance. Matthews &

Ross (2010) Quantitative research method can collect data that is structured

and which could be represented numerically. The researchers also use

quantitative design to examine and analyze percentage if the benefits really

affects the loyalty and performance of an employee.

3.2 Participants of the Study

The participants in this study are the employees of VXI Global Solution

Inc, a Business Process Outsourcing Company. All the participants were

regular employees, a total of 100 employees will be asked to answer survey

questionnaires. This comprised (number of men) and (number of women).

The tables below present the profile of the employee-respondents in terms of

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age (Table 1) gender (Table 2) position (Table 3) and length of service of the

respondents (Table 4).

Table 1

Profile of Respondents in Terms of Age

Number of
Age Percentage
Respondents
18-20 9 9%

21-25 47 47%

26-30 34 34%

31-35 4 4%

36-40 6 6%

Table 2

Profile of Respondents in Terms of Gender

Gender Number of Percentage

Respondents
Male 53 53%
Female 47 47%

Table 3

Profile of Respondents in Terms of Position

Position Number of Percentage

Respondents
CSR 54 54%
TSR 46 46%
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Table 4

Profile of Respondents in Terms of Length of Service

Length of Service Number of Percentage

Respondents
Less than a year 45 45%
2-5 years 49 49%
6-8 years 5 5%
9 years or more 1 1%

3.3 Setting of the Study

The study will take place in VXI Global Solution Inc., a company

specializes in call center and BPO services, software development, quality

assurance testing, and infrastructure outsourcing located at North Edsa

Munoz-Panorama. The researchers decided upon conducting the research to

further investigate the benefits of employees and its impact towards their

loyalty and performance.

3.4 Research Instrument

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Survey questionnaire was used to gather information from VXI Global

Solution Inc. The questionnaire consist of two parts, the first one is the

personal data that consist the respondents name, age, educational attainment

and position. The other part is the survey proper it contains the questions that

will measure the employee benefits and its impact towards their loyalty and

performance.

3.5 Validation of Research Instrument

Research validity can be divided into two groups: internal and external.

It can be specified that “internal validity refers to how the research findings

match reality, while external validity refers to the extent to which the research

findings can be replicated to other environments” (Pelissier, 2008, p.12).

Research validity in survey relates to the extent at which the survey measure

right elements that need to be measured. In simple terms validity refers to

how well an instrument as measure what is intended to measure. Survey

questionnaire is one of the commonly used tool in collecting data from various

respondents. The main objective of questionnaire in research is to gain

relevant information through reliability and validity making the research valid

and consistent. However, in order for the data to be valid the researchers

requested help from a statistician and a professor in Global Reciprocal

Colleges to check the questionnaires. The following corrections and

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suggestion will be included in the draft for the questionnaire. The information

collected from the respondents will be tested for reliability.

A Likert-type rating scale test format which is simple and widely used

method for measuring attitude was adopted in the validation of the content of

the test. The following four-point Likert scale and the interpretation used are

shown in Table 5.

Table 5

Likert-Type for the Criteria in the Evaluation of the Test Instrument

Range Quantitative Description

4 Strongly Agree : There is a strong significance in criterion
3 Agree : There is moderate significance in criterion
2 Disagree : There is a little significance in criterion
1 Strongly Disagree : There is no significance in criterion

The mean of the weighted responses was interpreted along the scale

and the description is presented in Table 6.

Table 6

Rate Interpretation Range

4 Strongly Agree 3.00 – 4.00
3 Agree 2.00 – 2.99
2 Disagree 1.00 - 1.99
1 Strongly Disagree 0.00 – 0.99
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In this study, for the test instrument to be acceptable based on a

specific component on the evaluation tool, the mean that must be obtained

was set within the range of 2.00-2.99. The researcher adopted the

interpretation of Strongly Agree which means that the items in the test

instrument provided and satisfied the criteria set in every category in the

evaluation form.

3.6. Establishing Reliability of the Test Instruments

A Pearson Product-Moment Correlation Coefficient (r) is a statistical

tool used to measure the correlation coefficient of two interval or ratio data. It

also aims to determine how closely the data points scattered along a straight

line. Thus, this was used to correlate the result in survey done for the impact

of benefits on both loyalty and performance of employees.

The computed r value for the benefits and loyalty recorded at 0.96

which suggests a strong relationship between the sets of data. The obtained r

further indicates that there is a strong correlation between benefits and

employee’s performance .

The r value obtained for the benefits and performances was noted at

0.9 which indicates strong relationship between the two sets of data. Further,

the correlation coefficient of 0.9 suggests that there is a strong correlation

between benefits and employee’s performance.

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Formula: Variables Description

R = sxy
Pearson’s Correlation
r Coefficient
√sxx syy

Sxy= ∑xy - ∑x∑y n Number of samples

n
x Score of the first variable

Score of the second

Sxx= ∑x²- (∑x)² y variable
n

Syy= ∑y² - (∑y)² The product of two paired

N xy score

Table 7
Interpretation of r Values

 Value of the Strength of

Correlation Coefficient Correlation 
 1 Perfect 
 0.7 - 0.9 Strong 
 0.4 - 0.6  Moderate
 0.1 - 0.3  Weak
0  Zero

3.7 Summary of the Test Characteristics

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The researchers follow a process that is required in conducting a

research study. They chose a topic that is specific and relevant to the

readers. The researcher checked, read, and analyze the questionnaire that

they will hand out to their respondents. The survey was approved and

permitted by the authorized personnel. The questionnaire will be distributed to

the respondent during their break time.

Upon arriving at the location for the survey, the researchers made up a

team of two then started handing out surveys to the respondents. They also

give a bit information as to why the survey is conducted and how is it relevant

to the respondents. The questionnaire was retrieved, two days after the data

gathered were recorded analyzed and interpret.

3.7 Statistical Analysis

The results of the study are treated statistically by computing the

following measures.

1. The descriptions of the respondents in terms of age, educational

attainment, position, employment status were measure by means of

percentage and frequency.

2. To test if there is correlation between

A. Benefits and loyalty

B. Benefits and performance

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3. To determine what are the employee benefits of call center agent

inside of VXI .

4. To identify how the benefits affect the employee in terms of loyalty

and performance.

CHAPTER IV

PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA

This chapter includes the presentation, analysis, and interpretation of

data. The statistical results are shown to examine the relationship of

Employee Benefits and Employees Loyalty and Performance in VXI Munoz.

This chapter consists of the results of the statistical tests for the survey

questionnaire. The descriptive and inferential statistical results, together with

the interpretation of the results are organized according to the research

questions addressed.

4.1 Background of Employees Participated in the Research

Problem No. 1 The Demographic Profile of the Employees in terms of:

1.1 Age

1.2 Position

1.3 Gender

1.4 Length of service

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Table 8 shows the profile background of the employees who voluntarily

participated in the survey. 47% of the respondents are millenial, while 34%

are ranging from 26-30 years old. The remaining percentage range from post

millennial and 31-40 years old. The following respondents were all call center

agents inside VXI. 54% of the respondents are CSR (Customer Service

Representative) and the remaining 46% are TSR (Technical Support

Representative). Also there is a larger number of male respondents 53% who

are willing to answer the questionnaires provided. While female respondents

have 47%, since most of them wasn’t really accommodating. Lastly, 49% of

the respondents have stayed in the company for over 2-5 years also, 45% of

them are employed for less than a year probably some of them are still under

probation. The smaller portion of respondents have stayed in the company for

more than 6 years.

Table 8

Variables Level Frequency %

18-20 9 9%
21-25 47 47%
Age 26-30 34 34%
31-35 4 4%
36-40 6 6%
M 53 53%
Gender
F 47 47%
CSR 54 54%
Position
TSR 46 46%
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Less than a year 45 45%

2-5 years 49 49%
Length of Service
6-8 years 5 5%
9 years or more 1 1%

4.2 Benefits of Employees inside VXI

Problem 2. What are the benefits of employees?

.
Table 9 shows the following benefits received by the employees of

VXI. 58.3% strongly agreed to have received the following benefits in the

table, 16.3% agreed to have been given, while 6.8% disagree to receive the

following benefits and 14.4% strongly disagreed to have received the

benefits. Given that 45% of the employees are employed for less than a year

it will be evident that most of them were offered only mandated benefits. And

still expecting that the benefits will be given in the future. But still, 88 (eighty-

eight) respondents claimed to be satisfied and happy for the benefits that they

currently receiving.

Table 9
Benefits received by the Employees

BENEFITS 4 3 2 1 WM % Remarks

I receive vacation leave. 77 16 1 3 3.73 92.25 SA

I receive health benefits. 61 4 2 0 3.92 99 SA

I received food allowance. 56 22 7 13 3.22 90.25 SA

I receive service incentive. 60 21 7 9 3.38 92.25 SA

I receive rewards or bonus. 61 33 2 7 3.58 94.75 SA

I receive casual dress benefit. 41 13 10 33 2.65 83.12 A

I receive transportation allowance. 35 21 13 30 2.6 82.5 A

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I receive 14th and 15th month pay 39 9 14 35 2.55 81.86 A

I receive maternity/ paternity/ parenting benefits. 65 9 9 14 3.28 91 SA

I am happy and satisfied in the benefit that I received. 88 15 3 1 3.73 96.63 SA

4.3 Effects of Benefits on Employee’s Loyalty and Performance

Problem 3.How does the benefit affects the employees in terms of:

3.1 Loyalty

3.2 Performance

Pearson Product-Moment Correlation Coefficient was employed to

determine the correlation between benefits and performance, benefits and

loyalty. In which the x is benefits and y stands for performance and loyalty.

The r value of benefits and loyalty resulted in 0.9 suggesting a strong

correlation among the two. Further it only implies that benefits has something

to do with the employees loyalty. It also indicates that the agent's loyalty

depends upon the benefits provided by the company.

Loyalty
variables 1 2 3 4 5 6 7 8 9 10
x 2.55 2.6 2.65 3.22 3.28 3.38 3.58 3.73 3.73 3.92
y 3.22 3.28 3.36 3.4 3.48 3.49 3.53 3.66 3.68 3.73

R = sxy
√sxx syy

Sxy= ∑xy - ∑x∑y = 114.44-113.69= 0.75

n

Sxx= ∑x²- (∑x)² = 108.84-106.53= 2.31

n
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Syy= ∑y² - (∑y)²= 121.57-121.31=0.26

N

R= 0.75
√(2.31)(0.26) = 0.96

Table 11 shows that 66.6% of the respondents strongly agreed that

benefits contribute to their loyalty and 20.4% agreed to be loyal because of

the benefits the company has offered. On the other hand, 7.7% disagree that

benefits affect their loyalty. Lastly, 5.3% strongly disagreed and claimed that

benefits has nothing to do with their loyalty for the company. Therefore, the

researchers assume that a benefit plays a vital role in employee's loyalty.

LOYALTY 4 3 2 1 WM % Remarks
I will stay in this company for the benefits. 74 21 4 1 3.68 96 SA
I will stay in the company for 10 years or more. 65 14 13 8 3.36 92 SA
I am loyal to my job because of the health 61 27 11 1 3.48 93.5 SA
benefits.
I am motivated to finish my job before the 76 22 1 1 3.73 96.63 SA
deadline.
I will be punctual everyday if I receive rewards or 65 25 8 2 3.53 94.13 SA
bonus.
I am loyal to my job because I received service 64 10 10 16 3.22 90.25 SA
incentives.
I become loyal to my job if I received 14th and 15th 73 22 3 2 3.66 95.75 SA
month pay.
My loyalty level will increase if the company give 68 18 9 5 3.49 93.63 SA
me vacation leave.
My absenteeism level decrease because I 61 24 9 6 3.40 92.5 SA
received transportation allowance.
I am loyal to my job because I receive maternity/ 59 21 9 1 3.28 91 SA
paternity/ parenting benefits.
Table 11
Impact of Benefits towards Employee’s Loyalty
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The r value of benefits and performance resulted in 0.96, which means that there

is a strong correlation between the two as such that benefits really have an impact towards

employee's performance. Further, it may also indicate that employee's performance may

vary upon the benefits that they received.

Performance
variables 1 2 3 4 5 6 7 8 9 10
x 2.55 2.6 2.65 3.22 3.28 3.38 3.58 3.73 3.73 3.92
Y 3 3.23 3.35 3.42 3.44 3.48 3.50 3.58 3.59 3.65

R = sxy
√sxx syy

Sxy= ∑xy - ∑x ∑y = 112.56-111.76=0.8

n

Sxx= ∑x²- (∑x)² =108.84-106.53=2.31

n

Syy= ∑y² - (∑y)²= 117.57-117.23=0.34

n

R = 0.8
√(2.31)(0.34) = 0.9 or 1

In table 12 it showed that 59.7% of respondents strongly agreed that

their productivity and efforts depend on the benefits that VXI granted them.

While 25.6% agreed that their performance is solely based on the benefits
 GOD-FEARING RECIPROCATING COMMITTING TO EXCELLENCE 41

that they received from the company. On the other hand, 7.8% disagree that

benefits affect their performance while a small portion of 3.8% claimed that

benefits had nothing to do on how they perform inside the company, it may be

other factors that is no longer discussed in this study. Therefore, the

researchers assumed that employee benefit is a factor that greatly contributes

to the call center agent's performance inside VXI.

Table 12

Effect of Benefits on Employees Performance

PERFORMANCE 4 3 2 1 WM % Remarks
My performance is based on the 57 25 8 8 3.35 91.86 SA
benefits I received.
I am productive in my job because of 47 34 15 2 3 87.5 SA
the health benefit.
Receiving benefit makes me more 66 25 4 2 3.59 94.86 SA
competent and effective.
I will perform well if the company give 49 25 15 7 3.23 90.36 SA
me casual dress benefit.
I am productive in my job because I 60 25 10 2 3.48 93.5 SA
received service incentives.
I am productive in my job because I feel 63 29 4 1 3.58 94.75 SA
secured in this company.
I will maximize my effort if the company 70 21 5 1 3.65 95.62 SA
gives me a good benefit.
I will perform very well if the company 56 31 4 6 3.42 92.75 SA
will give me food allowance.
I will give my very best if the company 60 31 4 2 3.50 93.75 SA
will give me a vacation leave.
I will perform well if the company will 69 10 9 7 3.44 93 SA
give me 14th and 15th month pay.
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 GOD-FEARING RECIPROCATING COMMITTING TO EXCELLENCE 43

CHAPTER V

SUMMARY, CONCLUSIONS AND RECOMMENDATIONS

The purpose of this study was to examine how the mathematics

performance, reading comprehension differentially moderated students’

problem solving in Genetics. The first section presents a summary of the

study while the second section describes the findings and conclusions

derived from the results of this research. The third section discusses the

recommendations for practice based on the study’s conclusions and

implications and for future research.

5.1. Summary of Findings

The researchers summarize the findings of the following questions on

the statement of the problem.

1. The table shows the most of the respondent are ages 21-25

with the percentage 47%. In terms of genders, male go the

highest percentage of 53% while the length of service 2-

5years got the highest percentage of 49%. The respondent

divided into two position 54% of employees are customers

service representative while the remaining 46% is technical

support.

2.
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5.2. Conclusion

This study was to examine and describe the findings of how the

benefits have an impact to the loyalty and performance of an employees , this

research found out the importance of benefit can affect and boost the

employees performance & loyalty because benefits have a necessary major

role that can impact an employees work attitude towards the company. Data

obtained in this research shows that giving benefits makes the employees

more productive and become loyal to their company. Also the analysis of

survey data shown that the benefits offers by the company have a great

influence to the employees attitude, if the employees happy, motivated and

satisfied they produce more good result. Employer will also benefit if they

have a productive and loyal employees.

5.3. Recommendations