Over the years, compensation and job satisfaction have been matters of concern for employers and employees in companies around the world. There are no exceptions among outsourced service providers in Jos, Plateau State.
Inadequate compensation, fringe benefits, recognition, promotion, and work security are also among the primary causes of employee dissatisfaction and intention to leave their existing employers. Moreover, the immediate forerunner of dissatisfaction or lack of satisfaction among employees of outsourced service providers has been low or inadequate compensation, which is a matter for significant concern among academic administrators and human resource managers in Nigeria.
In view of the aforementioned, the purpose of this study was to investigate the relationship between employee compensation and job satisfaction at chosen outsourced service providers in Jos Plateau State.
A survey-based study design was chosen. The population included all employees of the five (5) outsourced service companies selected in Jos, Plateau State. The sampling method employed was a census. 541 employees of the five selected outsourced service companies were studied using a census technique.
There were a total of 541 copies of the questionnaire sent, of which 448 (82%) were properly completed and returned, while 93 (17.2%) were not. As the study instrument, a validated survey was utilized. The result of the Cronbach’s Alpha test for measuring reliability ranges from 0.762% to 0.906%.
To evaluate the hypotheses, a simple regression analysis and the Pearson product moment correlation test were utilized.
This study found that pay (R2 = 0.665, p0.05), fringe benefits (r=0.747, p0.05), recognition (R2 = 0.558, p0.05), promotion (R2 = 0.683, p0.05), and job security (R2 = 0.711, p0.05) have a significant positive effect on the job satisfaction of employees of selected outsourced service providers in Jos, Plateau State.
All incentive elements had a substantial positive link with job satisfaction among outsourced service providers in Jos, Plateau State, found the study. Therefore, it is recommended that the management of these outsourced companies improve these rewards that have a direct and significant effect on employee job satisfaction (pay, fringe benefits, recognition, promotion, and job security) in order to reduce the level of employee dissatisfaction that could result in low performance and productivity.