HOME

Research on Employee
Satisfaction
[Type the document subtitle]
Cortney Woodyard
5/9/2019
Introduction
The research topic would be to look upon how monetary benefits and non-monetary benefits
go a long way in employee satisfaction and employee retention in IT sector. For this study
we are interested in analyzing how the employee satisfaction is important and how it can be
influenced by both monetary and non-monetary benefits that would increase both employee
motivation and employee satisfaction.

Research problem
The research problem that would be analysed using this study would be, how the monetary
(salaries and wages) and non-monetary (other benefits and rewards) benefits would impact
the employee satisfaction and retention among the employees.

Research Question
The research question would be, how monetary and non-monetary factors influence the
employee satisfaction levels in the IT organization. In my research while analyzing the
monetary and non monetary benefits, we would like to determine the factors that
influence the job satisfaction among employees which leads to employee retention in
organisations, the research question would be what are the factors that influence job
satisfaction among employees?

The research hypothesis(Saunders, Lewis, & Thornhill, 2008) for this research is given as

Ha: There is significant association with the independent variables (income benefits,
clarification of job rile, communication level, performance evaluation, career advancement
opportunities) and the dependent variable job satisfaction.

The null hypothesis for this research hypothesis would be

Ho: There is no significant association with the independent variables (income benefits,
clarification of job rile, communication level, performance evaluation, career advancement
opportunities) and the dependent variable job satisfaction.
Literature review:

There are various research articles that have previously studies employee motivation and
employee retention. Two among them are discussed here. One is the thesis done by Biason, in
which he has reviewed more than a decade of researches that focuses on antecedents and
outcomes of job satisfaction and employee retention. This study explores the relationship
between job satisfaction and employee retention and finds a positive correlation between the
two based on the analysis of various research articles and secondary analysis (Biason, 2014).

The second research article uses a quantitative approach to the study of employee benefits
and their influence on employee retention and this study determines the significance of
benefits for employee motivation and retention using empirical research done in banking
institutions and it also identifies differences with regard to gender, education, age and job
roles (Němečková, 2017).

One of the papers which was reviewed for my research topic includes the research on how the
offering of monetary and non monetary rewards to employees achieve the objective of
employee engagement within the organization and results in the high performance of the
firms. In this research, data was collected from 250 respondents for analysing the effects of
these benefits or rewards on the employee engagement and this data was analysed using
hierarchical linear regression which indicated the fact that both monetary and non-monetary
rewards can increase the level of employee engagement and also increasing the engagement
level of the employees also resulted in the high performance of the firm (Waqas, 2014).

Similar to this study, another study which was conducted in the Banking sector of Pakistan
analysed the impact and importance of non-monetary rewards in terms of their efficiency and
effectiveness on employee retention with the banks and this study also included the mediating
role of motivation and the extent to which the banks were taking care of the employee
motivation perspective in terms of career advancement and development opportunities apart
from giving them proper recognition for their achievements. This study revealed the fact that
there is significant relationship between the dependent variable employee retention in these
banks and the independent variables of monetary and non-monetary rewards and the
mediating variable of employee motivation through offering career advancement and career
development facilities to the employees also had a significant relationship with the dependent
and independent variables(Khan, Kashif, & Ahamd, 2017).

The above studies are effective in their approaches in understanding the relationship between
how monetary and non-monetary rewards help in improving the job satisfaction among
employees apart from increasing the employee retention rates. However, the second study
analyses the mediating role of provision of career advancement facilities which increase the
employee motivation and hence the firms’ performance which is missing in the first study.

Ethical considerations
There are various codes, principles and policies that are very important and useful for
conducting research, they do not cover every situation and they often conflict when
conducting business and require considerable interpretation of the same before one can
decide, it is therefore important for the resources to learn how to interpret, assess and apply
various research rules in order to determine how to act ethically in various situations. there
are three principles net are considered to be a ethical in conducting business research. they
are respect for others who are the participants, beneficence ( that benefits of the researcher
will outweigh the cost for its risks) and the third principle is justice where there is equity in
all aspects of the research including participant selection, fairness in dealing with
participants, maintaining anonymity of the personal information, etc (Saunders, Lewis, &
Thornhill, 2008) .

Data and methodology:

This research we would collect data with regard to Monetary benefits, clarification of job
role, communication, performance evaluation, career advancement opportunities and job
satisfaction level. For this, we would be using quantitative approaches that would get
responses from the survey respondents on a likert scale basis which would then be used for
statistical analysis.
Survey questions for the above question would be likert scale questions that include, 1-
strongly disagree, 2 -disagree, 3 -neutral, 4- agree and 5 would be strongly agree. Survey
questions would include the following. The questionnaire that was used to survey the
research participants are included in the appendix.

The survey questionnaire to collect data from 15 respondents and analyze them using
correlation and regression analysis by using excel and interpret the results to answer the
research question.

Data Analysis:

The data collected is presented in the following graphs.

Strongly agree
0%
Disagree
Job roles are discussed
6%

Neutral
27%

Agree
67%

From the above chart, we can see that 67% of the employees feel that they have been clarified
on their job roles at their workplaces. While 27% of the employees are neutral on this, 6% of
the employees disagree with this fact.
 Effective communication with
supervisor Strongly agree
Disagree
0% 7%

Neutral
20%

Agree
73%

From the above pie chart, 73% of the employees feel that their supervisors communicate with
them effectively. While 7% of the 15 employees strongly agree with this fact and 20% of the
employees are neutral on this aspect.

Safe work environment

9
8
7
6
5
4
Safe work environment
3
2
1
0
Strongly Agree Neutral Disagree
agree

The number of employees who feel that their work environment is safe is around 8+1 =9 of
the 15 employees, while 4 of them are neutral about this fact.
 Career advancement opportunities
8
7
6
5
4
Career advancement
3 opportunities
2
1
0
Strongly Agree Neutral Disagree
agree

While 8 of the 15 employees feel that the current job presents career opportunities, others are
all neutral on this aspect.

Strongly
agree Satisfaction with Income benefits
7%

Disagree
13%
Neutral
13%

Agree
67%

67% of the employees feel that they are satisfied with their salaries while 7% strongly agree
with this fact, 13% disagree that they are provided with adequate salary and 13% are neutral.
 Job performance evaluated regularly
12

10

6
Job performance
4 evaluated regularly

0
Strongly Agree Neutral Disagree
agree

Nearly 10 of the 15 employees feel that their performance is evaluated through their peers
and supervisors on a regular basis.

Correlation Analysis

Overall Satisfied with

Job roles
Effective
my job
arepositio
communication
discussed Job performance
with supervisor
evaluated
Career advancement
regularly
Safe opportunities
work environment
Income benefits
Overall Satisfied with my job
positio 1
Job roles are discussed 0.542295 1
Effective communication
with supervisor 0.122472 0.043741 1
Job performance evaluated
regularly 0.346146 0.642857 0.481149771 1
Career advancement
opportunities 0.276917 0.285714 0.26244533 0.285714286 1
Safe work environment -0.54267 -0.09629 0.124483824 0.144436666 0.304922 1
Income benefits 0.235667 0.388262 0.374653772 0.564744966 0.211779 -0.13746 1

The overall satisfaction of the employees are correlated with the other factors such as job
roles, effective communication, job performance evaluation, career advancement
opportunities, safe work environment and income benefits. This is evident from the above
correlation table where the overall job satisfaction is moderately and positively correlated
with the job roles at 0.54; correlation with effective communication and career advancement
being low and positive at 0.122 and 0.276 respectively. Similarly overall satisfaction is also
positively correlated with job perfromacne evaluation and income benefits at 0.346 and 0.235
respectively. As the variables are correlated, we have conducted a regression analysis as
follows.

Regression Analysis

SUMMARY OUTPUT

Regression Statistics
Multiple R 0.825267856
R Square 0.681067034
Adjusted R Square 0.441867309
Standard Error 7.3126211
Observations 15

ANOVA
df SS MS F Significance F
Regression 6 913.5379 152.2563 2.847273 0.043513
Residual 8 427.7954 53.47443
Total 14 1341.333

Coefficients Standard Error t Stat P-value Lower 95%Upper 95%Lower 95.0%

Upper 95.0%
Intercept 60.05593936 20.55352 2.921929 0.019234 12.65943 107.4524 12.65943 107.4524
Job roles are discussed 4.560351175 4.756804 0.958701 0.365783 -6.40886 15.52956 -6.40886 15.52956
Effective communication1.206355593
with supervisor
4.903489 0.24602 0.811861 -10.1011 12.51382 -10.1011 12.51382
Job performance evaluated
3.760446131
regularly 5.56647 0.675553 0.518371 -9.07586 16.59675 -9.07586 16.59675
Career advancement opportunities
5.640182347 3.585773 1.572933 0.154379 -2.62863 13.90899 -2.62863 13.90899
Safe work environment -4.85221114 1.613505 -3.00725 0.016884 -8.57296 -1.13146 -8.57296 -1.13146
Income benefits -3.256267678 3.928456 -0.82889 0.431199 -12.3153 5.802768 -12.3153 5.802768

In the above regression analysis, we have used the overall satisfaction of the employees as the
dependent variable and the other variables such as job roles, effective communication, job
performance evaluation, career advancement opportunities, safe work environment and
income benefits as independent variables, and the regression output shows that the model is
significant in determining the overall satisfaction of employees as the r-square value is at
0.6810 which means that 68.1% of the changes in the dependent variable overall satisfaction
is determined by the changes in the independent variables, as job roles, effective
communication, job performance evaluation, career advancement opportunities, safe work
environment and income benefits.
Discussion and Conclusion

From the above analysis we can conclude that the overall satisfaction of employees are
impacted by variables such as as job roles, effective communication, job performance
evaluation, career advancement opportunities, safe work environment and income benefits
and hence we can say that both monetary and non-monetary benefits impact the overall
satisfaction of the employees in this IT sector.
Appendix: Survey Questionnaire
.

1. I am satisfied with the income benefits like it in this job role? (scale _____)

2. I am clarified on the tasks which I have to perform in my job role? (scale _____)

3. My supervisor communicates to me regularly to understand my concerns? (scale _____)

4. My job performance is evaluated on a regular basis by my peers and supervisors? (scale

_____)

5. There are career advancement opportunities in my current job role in my organisation?

(scale _____)

6. My job satisfaction level is at (give a score between 1 to 100); the higher the score, higher
is the satisfaction? _______
References:
Biason, R. S. (2014). THE EFFECT OF JOB SATISFACTION TO EMPLOYEE
RETENTION. Retrieved April 10, 2019, from
https://www.researchgate.net/publication/315653880_THE_EFFECT_OF_JOB_SATIS
FACTION_TO_EMPLOYEE_RETENTION

Khan, I., Kashif, S., & Ahamd, A. (2017). Effect of Non-Monetary Rewards on Employee
Retention with a Mediating Role of Motivation in the Banking Sector of Pakistan.
Imperial Journal of Interdisciplinary Research (IJIR, 3. Retrieved from
https://www.onlinejournal.in/IJIRV3I7/102.pdf

Němečková, I. (2017). The role of benefits in employee motivation and retention in the
financial sector of the Czech Republic. Economic Research-Ekonomska Istraživanja,
30(1), 694–704. https://doi.org/10.1080/1331677X.2017.1314827

Saunders, M., Lewis, P., & Thornhill, A. (2008). Research Methods for Business Students.
Research methods for business students. https://doi.org/10.1007/s13398-014-0173-7.2

Waqas, Z. (2014). The Effect of Monetary and Non-Monetary Rewards on Employee

Engagement and Firm Performance. European Journal of Business and Management
www.iiste.org ISSN (Vol. 6). Online. Retrieved from www.iiste.org