SATISFACTION OF EMPLOYEES ON NON-FINANCIAL COMPENSATION IN NEPALESE ORGANIZATIONS

Abstract

Employee compensation plays a crucial role in the dynamic between employees and employers, significantly influencing performance on both sides. Compensation impacts not only the motivation and satisfaction of employees but also the overall productivity and success of an organization. The primary aim of this study is to explore the relationship between monetary compensation and various aspects of job satisfaction— namely, general, extrinsic, and intrinsic satisfaction. To achieve this, the study employed a Convenience sampling method and utilized both descriptive and causal research designs. Analytical tools such as ANOVA, T-test, correlation, and regression were used to assess the data. The research was conducted among employees of commercial banks in the Kathmandu Valley, using questionnaires to measure the impact of compensation on employee satisfaction. In this study, employee compensation was treated as the dependent variable, while independent variables included commitment, reward, appreciation, and fairness. The findings revealed a strong positive correlation between appreciation and commitment, as well as between reward and appreciation. Additionally, the regression analysis demonstrated that all independent variables—commitment, reward, appreciation, and fairness—had a positive and significant effect on employee compensation. These results highlight the importance of a holistic approach to compensation, where monetary rewards are complemented by recognition, fairness, and a sense of commitment to ensure higher levels of employee satisfaction.