THE EFFECT OF REMUNERATION ON EMPLOYEE JOB SATISAFCTION: THE CASE OF COMMERCIAL BANK OF ETHIOPIA

Abstract

The purpose of this research was to find out the effects of remuneration on employee job satisfaction on selected south Addis Ababa district of Commercial Bank of Ethiopia. The study was considered six independent variables. The researcher used descriptive and explanatory research design. To this objective both qualitative and quantitative approach was used and data were collected from 133 employees who were selected using simple random sampling technique. The source of data was primary and secondary data. The method of data collection was using questionnaires and interview. Validity and reliability test were directed to check the consistency between the variables all included variables confirmed to reliable scoring with alpha value greater than 0.7. The method of data analysis was using SPSS. The major findings showed that, there is significant positive relation between remuneration and employee job satisfaction. The other is linear combinations of all factors of remuneration considered under the present study were significantly contributed to the positive variation in employees’ job satisfaction. The interview of the managers showed there are efforts to improve job satisfaction by applying international banking procedure. And similarly, the bank is revising the gap in promotion opportunities and benefit packages. The researcher concluded that in the case of selected branches of Commercial Bank of Ethiopia south Addis Ababa district, the different factors of remuneration have significant positive impact on employees’ job satisfaction. Finally, the researcher recommended the bank needs to perform a grading assessment for a timely promotion in order to improve the employees’ job satisfaction. In addition, the housing allowance does not cover their cost of house rent, it is better for the bank to consider and compare the allowance given with the current living cost which brings employee job dissatisfaction.