The Impact of Compensation on Job Satisfaction among Employees A Conceptual Analysis

Abstract

This paper is on the impact of Compensation on Job Satisfaction of Employees, A Conceptual Analysis. It focuses on the relationship between compensation and job satisfaction and how compensation influences the employees feeling towards his job duties in the organization. The paper relied on secondary sources of data such as journal articles, previous studies, newspapers, magazines, bulletins, internet resources, etc. Consequently, Equity theory was reviewed and adopted as the theoretical framework to guide the paper based on its relevance to compensation. Based on the empirical studies, literature reviews, and the theoretical support of the Equity Theory, the findings of this paper revealed that compensation can significantly impact or influence positively, the job satisfaction of employees in an organization. The paper therefore recommended among others that, organizations should institutionalize and utilize equitably fair compensation system to engender job satisfaction among their employees at all levels of the organizational hierarchy.