Employee Compensation and Job Satisfaction in Salaam Somali Bank, Mogadishu Somalia

ABSTRACT 

The study was set to investigate the employee compensation on employee satisfaction was based on three objectives that were determining the effect of job based, skills based and performance based compensations on job satisfaction in Salaam Somali bank. The study was conducted based on a cross-sectional design based on the quantitative approaches where the employees of Salaam Somali bank provided the information. The intervention was through the questionnaires. The population of 280 and the sample was 165 respondents. The study findings were that job based compensation accounted for 36.2% influence on employee satisfaction. This means that that job based compensation affected job satisfaction affect the employee satisfaction in Salaam Somali bank by 3 6.2%. On the second objective skills based compensation affected job satisfaction by 34% and the third objective performance based compensation on Job satisfaction had 11% % effect on employee satisfaction in Salaam Somali Bank. The researcher concluded that job based compensation on job satisfaction in Salaam Somali bank established that job based performance was low though a significant relationship was found that job based compensation has an effect on performance. The second objective were the responses established that skills based compensations prevailed in Salaam Somali bank. It was established that somehow the skilled employees were being compensated though the effect of skills based compensation on employee satisfaction was positive. Performance based compensation effect on job satisfaction finally argued that the employees were not highly compensated based on performance dimension even when the effect of compensation on satisfaction of employees was found positive however much the effect was not so important. The researcher recommends that employee’s interviews could be conducted to measure their perceptions of organization’s ability to address this issue. Also monitoring to ensure that correct compensation is assigned to the jobs done by the employees so that changes in variables like pay scales, employee input in policy. There should also be rewards based on the profitability of the organization, there is need for assessment of the organizational skills competence and provide the skills appropriate.

TABLE OF CONTENTS

DECLARATION

APPROVAL

DEDICATION

ACKNOWLEDGEMENT

ABSTRACT

CHAPTER ONE 1

INTRODUCTION

1.0 Introduction 1

1.1 Back ground to the study

1 .1.1 Historical Perspective 1

1 .1 .2 Theoretical Perspective 3

[.1.3 Conceptual Perspective 4

1 .1 .4 Contextual Perspective 5

1.2 Statement of the Problem 6

1.3 Purpose of the study 6

1.4 Research objectives 6

1.5 Research Questions 6

1 .6 Research Hypothesis 7

1.6 Scope ofthe study 7

1.6.1 Geographical Scope 7

1.6.2 Content Scope 7

1.6.3 Theoretical Scope 7

1.6.4 Time Scope 7

1.8 Significance of the Study 8

1.9 Operational definitions of key terms 8

CHAPTER TWO 10

LITERATURE REVIEW 10

2.0 Introduction 10

2.1 Theoretical Review 10

2.2 Conceptual Framework 11

2.3.1 Effect of Job-based compensation on job satisfaction .12

2.3.2 Effect of skills based compensation on job satisfaction in organisations 14

2.3.3 Effect of performance-based compensation on Job satisfaction 16

2.4 Relationship between employee compensation and job satisfaction 18

2.5Related studies on employee compensation and job satisfaction 20

2.6 Research Gaps 23

CHAPTER THREE 24

METHODOLOGY 24

3.0 Introduction 24

3.1 Research Design 24

3.2 Research Population 24

3.4 Sampling Procedure 25

3.5 Sources of data 25

3.5.1 Primary Data 25

3.6 Research Instrument 25

3.6.1 Questionnaire 25

3.7 Quality of research instruments 26

3.7.1 Validity 26

3.7.2 Reliability of questionnaire 27

3.8 Data analysis 27

3.9 Ethical consideration 28

3.10 Limitations of the study 28

CHAPTER FOUR 30

DATA, PRESENTATION AND INTERPRETATIONS 30

4.0 Introduction 30

4.1 Demographic Information 30

4.2 Effect ofjob-based compensation on job satisfaction in Salaam Somali Bank 32

4.2.1 Responses on job-based compensation on job satisfaction in Salaam Somalia Bank 32

4.2.3 Responses on employee satisfaction in Salaam Somali Bank 34

4.2.3 Regression analysis on Job based compensation on employee satisfaction in Salaam Somali bank 36

4.3 Effect of Skills based compensation on job satisfaction Salaam Somali Bank 37

4.3.1 Skills based compensation on satisfaction in Salaam Somali bank 37

4.3.2 Regression Analysis on skills based compensation on job satisfaction in Salaam Somali Bank 39

4.4 Effect of performance-based compensation on Job satisfaction in Salaam Somali Bank ...40

4.4.lPerfomance based compensation in Salaam Somali Bank 40

4.4.3 Effect of performance based compensation on Job satisfaction in Salaam Somali Bank.42

CHAPTER FIVE DISCUSSION, CONCLUSION, RECOMMENDATIONS 44

5.0 Introduction 44

5.1 Discussion of findings 44

5.2 Conclusion 46

5.3 Recommendations 46

5.4 Contribution to existing knowledge 47

5.5 Areas of further study 47

REFERENCES 48

Appendix i: Research Questionnaire 53

Appendix ii: Map of Somalia Showing Mogadishu 56