THE EFFECT OF COMPENSATION ON EMPLOYEES JOB SATISFACTION: THE CASE OF EAST AFRICAN TIGER BRANDS INDUSTRY

Abstract

The main purpose of this research is to examine the Effect of Compensation on Employee Job Satisfaction in the case of East African Tiger Brands Industry. The researcher used stratified sampling technique and 255 employees were selected from Head Office to participate in this study. Questionnaires were distributed to sample respondents and all questionnaires were returned. Data analysis was done using descriptive statistics and regression analysis in order to present the magnitude of the respondents. Findings showed that both extrinsic and intrinsic compensations had a positive effect on employee job satisfaction. It was recommended that the compensation Schemes should be revised periodically; taking into account the market conditions, the nature of the job and the employees desire and needs. Adequate compensation has to be provided and offered to employees based on their performance.