Impact of monetary compensation on employees satisfaction: evidence from Nepal

Abstract

An important aspect of the relationship between an employee and an employer is employee remuneration. The salary rate has an impact on both the employer's and the employee's performance. The purpose of this research is to ascertain whether and to what degree there is a relationship between the monetary remuneration received by employees and their intrinsic, extrinsic, and overall job happiness. The convenience sampling method was used in this investigation. This study used a descriptive and causal research design. Regression, correlation, ANOVA, and T-test have also been applied. With the aid of questionnaires, this study was carried out on the commercial banks in the Kathmandu Valley to determine the impact of pay on employee satisfaction. In this study, commitment, reward, appreciation, and justice are used as independent factors, and employee compensation is used as the dependent variable. The findings indicated that there was a strong positive correlation between reward and appreciation as well as commitment. The outcome of the regression analysis showed that employee compensation is positively and significantly impacted by dedication, reward, recognition, and fairness.

Key word: Performance appraisal, Employee motivation, Nepalese commercial bank