Employee compensation and job satisfaction in salaam Somali bank, Mogadishu Somalia

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Kampala International University, College of Humanities and Social Sciences
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.
A thesis report presented to the college of economics and management in partial fulfillment of the requirements for the award of Master of Arts in Human Resource Management of Kampala International University
Employee compensation, job satisfaction, Mogadishu Somalia