IMPACT OF COMPENSATION ON EMPLOYEE JOB SATISFACTION IN THE CASE OF BANK OF ABYSSINIA CENTRAL ADDIS DISTRICT

Abstract

This research was sought to examine the factors determining employee job satisfaction at the Bank of Abyssinia. The purpose of this study was to identify and analyze the key elements that influence job satisfaction among employees within this financial institution. The research was focus on understanding both intrinsic and extrinsic factors that impact employee contentment and overall job performance. The primary objectives of the study are: identifying the critical factors affecting job satisfaction at the Bank of Abyssinia, assessing the relative impact of these factors on employees' satisfaction levels, and developing actionable recommendations to enhance job satisfaction based on the findings. To achieve these objectives, a mixed-methods approach was employed. Quantitative data was collected through structured surveys distributed to a representative sample of employees, addressing factors such as compensation, work environment, career development opportunities, and promotion opportunity. Complementary qualitative data was gathered through semi-structured interviews to capture deeper insights into employees' personal experiences and perceptions. The study was used statistical techniques to analyze survey data and thematic analysis for interview data. The finding also reveals the existence of moderate level of promotion in the Bank of Abyssinia central Addis District. The data collected through distributing questionnaire were analyzed using correlation and regression analysis by applying SPSS version 25. The study concludes that fair compensation and career development opportunities are crucial for enhancing employee morale, commitment, and productivity. Based on the findings, the study recommends that the Bank of Abyssinia regularly review and update its compensation structure to ensure it remains competitive and aligns with employee expectations. Additionally, the bank should focus on improving working conditions, offering recognition programs, and providing clear career progression paths to enhance job satisfaction and employee retention. These measures are expected to foster a motivated and engaged workforce, ultimately contributing to the bank's long-term success.