Exploratory Analysis of Compensation and Employee Job Satisfaction

Abstract

Organizations are made up of people, and the success or failure of these organizations are dependent on the people in the organization.It has been proven time and again that one of the ways to get the best performance out of employees is to make them comfortable and happy.Workers of all ages and income brackets continue to grow increasingly unhappy at work -a long-term trend that should seriously concern employers.How then do managers create satisfied employees?Since compensation has been a major factor of motivating employees in an organization.This study examined the issue compensation and employee job satisfaction.Data was collected and analyzed in terms of descriptive statistics and Pearson chi square was used to test the significance of relationship between compensation and employee job satisfaction.The result indicated that there is no significant relationship between compensation and employee job satisfaction among the respondents.However components of compensation such as career development and job security were major contributing factors to employee job satisfaction.The study recommended that better carrier development opportunities should be given to the employees to increase job satisfaction.

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