An Analysis of Compensation Instruments on Employees’ Job Satisfaction

The research was conducted to examine the role of compensation on employee job satisfaction in the Gamo Gofa zone Trade and Industry Development Office. The main objective of the study was to assess the role of compensation on employee job satisfaction in the Gamo Gofa zone Trade and Industry Development Office. Identifying major problem areas and suggesting suitable solutions and recommendations improve compensation strategy.

The research used both primary and secondary sources of data to attain the above objective. The primary data was collecting questions from the employees of the organization by using questionnaires and the Secondary sources of data were textbooks, organization documents and manuals. The researcher used both closed-ended and open-ended questionnaires. The researcher used descriptive types of research design. Because it was conducted to describe the main role of compensation on employee job satisfaction in Gamo Gofa zone Trade and Industry Development Office, the target population of the study comprises the whole employees 50, as the topic indicates it is important for all levels of workers to assess their satisfaction level with compensation in their jobs. The researcher used the census sampling technique to give equal chances for all populations and make the research free from bias. Finally, the collected data was analyzed, Presented and interrelated by using statistical techniques such as tabulation and percentage then analysis, conclusion and recommendations were made.

According to the respondent compensation have so many roles such as increasing productivity, motivating employees to work and it gives high job satisfaction. The majority of the respondents indicated that they have no feeling of worthwhile and accomplishing their job as a result of the compensation system and benefit plan not based on merit (performance) base. So one can conclude that there are other methods such as seniority or experience base to compensate employees rather than performance.