CHAPTER ONE

ACHU LIZA ANYIM MOKOM

INTRODUCTION

1.1 Introduction

Job satisfaction refers to the overall feeling an employee has about their job, what it entails and the job surroundings. Compensation packages are the total amount to money and benefits employees receive in exchange for their work done. In this modern era, job satisfaction is an essential part of the human life that contributes to the foundation of the society. A good compensation package will positively affect employee job satisfaction and the total opposite when it is not well planned.

Any institution or organization with employees who are satisfied always turns out to be a successful one. Job satisfaction has different sectors, in this study, we will be looking at higher education institution. Getting knowledge and education is an essential part of developing a nation, higher education plays a big role in that. It does not only boost up knowledge development and invention but also enhances the ability and leads to a prosperous society. History has shown education to be one of the important investments that build the society, the economy, reduced poverty and builds interpersonal tolerance of a nation. This research explains how compensation packages affects employee job satisfaction.

Chapter one talks on the background, objectives, problem statement, questions, hypothesis, scope, organizational definitions and significance. Chapter two entails the literature review in three aspects which are conceptual, theoretical and empirical. Chapter three talks on the methodology of the study, chapter four on the presentation of findings and chapter five on the recommendations, conclusions and limitations.

1.2 Background of the Study

Job satisfaction has been an interesting area of research for many other researchers in the field of personnel management especially in the academic environment. In academic institutions, it is important for them to keep an eye on their employee’s well-being and social-welfare. When workers are satisfied, they will be more efficient and result oriented. Most researchers investigated that job satisfaction is associated with factors like remuneration, compensation, motivation, future opportunities and work protection

The evolution of employee job satisfaction is a complex journey in the world as a whole influenced by many factors like societal changes and shifts in organizational practices. There has been a progression over time, the assessment of job satisfaction became a common place in the 1930’s through employees’ anonymous survey. Job satisfaction in higher institutions has been shaped by factors such as demographic, technological advancements, economic pressure and societal expectations.

Historically, higher education was more of academic freedom. Tenure and focusing on teaching and research, therefore giving a certain level of satisfaction rooted in intellectual freedom and autonomy. In the 1980s, there was a shift towards entrepreneurial models where they emphasized on fundraising, student enrolment and competitive pressure which led to job dissatisfaction and brought about challenges. Nowadays, staff face more challenges like increase in workload and pressure, change in student demographics, financial constraints, work-life balance and others.

Many researchers and investigators had identified that job satisfaction has a direct relationship with human psyche, emotion, attitude and behaviors. These aspects have helped individuals understand what job satisfaction is all about. In recent time, most organizations set their goals with regards to their employees and customers hence making job satisfaction one of the important goals of the organization. Recent reports of World Bank have found the leading and top universities in the world to be differentiated by high attentiveness both in faculties and students, an extensive and comprehensive learning and teaching environment that greatly contributes to the employee’s job satisfaction.

Around the early 2000s, factors seen to be affecting job satisfaction evolved to include work-life balance, work academic environment, autonomy, telecommuting options and digital connectivity. Also, employees went for better work-life integration, leading to a focus on supportive workplace cultures, mental health initiates and well-being programs. Hulin and Judge (2003), noted that job satisfaction included multidimensional psychological responses to an individual’s job and that their personal responses have cognitive, effective and behavioral components. Job satisfaction scales vary to the extent to which the assess the affective feeling about the job or the cognitive assessment of the job. Job satisfaction can also be seen within the bother context of range of issues which affect an experience of work or their quality of working life. It can be understood in terms of its relationship with other key factors such as general well-being, stress at work, control at work, homework interface and working conditions.

Employee job satisfaction in the tertiary industries reflects a journey from tax efficient to holistic well-being, emphasizing factors such as job security, autonomy, work life balance, basic working conditions and work hours. Employees sought stability and often prioritized these factors over other aspects of their jobs. As job satisfaction continues to evolve in the tertiary industry, organization strive to create fulfilling, engaging and supportive work environments that consider the employee’s well-being, recognition, growth as priority.by adapting to change, employees expect the organization to create a culture of job satisfaction that enhances employee retention, engagement and overall success within the tertiary industries. The essence is to know that prioritizing job satisfaction in an organization leads to harmonious, productive and thriving work environment where both the employee and organization flourish together.

Job satisfaction is an indication of how happy employees are with their jobs showing that a person feels confident and enthused about their work. Job satisfaction theories from Maslow to Lock have all been proposed to explaining the concept of job satisfaction and motivation. Analyzing these theories, factors that affect job satisfaction change over time and cultural aspects are very important during this. In higher institutions, job satisfaction of academic staff leads toward the delivery of quality education resulting in student satisfaction and better Universities.

Compensation plays a significant role in determining the level of job satisfaction through manpower, rewards, incentives and benefits. It has been noted that different public and private higher education institutions implement the monetary and non-monetary compensation packages differently. Compensation is a variable tool when dealing with employee’s effectiveness and this reflects positively on the staff behavior and academic productivity of the institution, it also attracts and keeps qualified workers which in return meet up with the organization’s goals.

In the ancient days, compensation was often done in the form of bartering goods and services. People exchange goods for other goods, establishing a basic form of compensation for work done. Compensation which was once seen as the primary focus of retaining, attracting and motivating employees has greatly shifted over the past several years. In those days, merits and rewards were given annually and it is fading as companies realize that merits have a high drive on individual’s performance. These compensation packages in higher institutions also depend on the various factors like the size of the institution, seniority, academic credentials, the economy, what compensation system they use and few other factors. What so ever be the case, they try as much as possible to make the employees happy with the compensation packages they offer and hence will lead to a successful organization. During the Cold War era, the emphasis shifted towards research and securing government grants which let to institutions rewarding faculties for research productivity and securing grants.

As time went by during the 18th and 19th century, the Industrial Revolution brought significant changes (from exchange of work for other goods to being paid for the work done) to compensation practices. Workers were paid usually based on hours worked through wages. This shift marked the beginning of modern compensation structures.  Often regarded as the father of modern economics, Adam Smith, in his book Work in the Wealth of Nations (1776), let the foundation for understanding Labor, Wages and the value of work. It discussed the concept of fair compensation based on market forces and productivity. Herzberg’s theory in 1950s distinguished between hygiene factors and motivators in influencing job satisfaction. Herzberg’s work emphasized the importance of non-monetary aspects of compensation in driving employee’s motivation and satisfaction. 

In the early 20th centuries, organizations began offering benefits such as healthcare, retirement plans and paid time off as part of compensation packages to attract and retain employees. During this period, Frederick Taylor primarily emphasized on task efficiency, his approach influence how competition and performance were linked in industrial settings.   With the mid-20th centuries came the rise of performance-based space systems, including merit pay and incentive title organizations or team performance organization started linking compensation directly to employee productivity and contribution. 

The 20th centuries saw a surge in exclusive compensation packages, including stock options, bonuses and other long-term incentives to align top executive interests with company performance. The concept of total rewards emerged, encompassing not just monetary compensation but also benefits, work-life balance, programs, scale, development opportunities and recognition are integral components of compensation packages. 

In the 1980s, compensation reflected shifting societal norms, economic trends, and organizational priorities, highlighting the ongoing quest for fair, competitive, and motivating previous systems that attract within and engage employees in the rapidly changing work environment. Each era has left the mark on how organizations compensate their employees, ultimately shaping the landscape of modern competition practices we see today. 

In the 21st centuries, organizations expanded compensation beyond monetary rewards by focusing on non-monetary benefits like flexible work arrangements, wellness programs, and professional development, opportunities to enhance employee satisfaction and engagement. Present day compensation practices companies are increasing addressing are gender and racial pay gaps, promoting pay transparency and implementing diversity initiatives to create more inclusive and equitable compensation structures.  

Compensation is seen to be important because it acts like the heart and soul of employee relations and organizational dynamics. It attracts and retains talent, motivates employees, brings about their satisfaction, builds their morals and well-being. It increases performance (a happy employee will turn to work more effectively and efficiently so they continue being happy) and productivity, builds the organizational culture of values, equity and fairness, and abides with the legal compliance. There is more employee engagement and retention and improved competitive advantage. 

1.3. Problem Statement

Non-academic staff are crucial (they turn to provide the other services not rendered by the academic staff members like complying of documents, cleaning, cooking and many more) to the effective running of an institution and yet their job satisfaction often faces challenges. This study addresses the impact of monetary and non-monetary compensation on the job satisfaction of non-academic staff. It provides more information on how crucial these elements can affect the employees and the institution as a whole and tries to solve the problem of which compensation package is more important for non-academic staff.

In Cameroon, staff in higher institutions have trade unions where they talk and discuss on the various problems, issues and activities concerning all the support staff in the various state universities. The trade union is called National trade union of support staff of Cameroon state’s Universities, (SYNAPAUC/NATUSSUC). Mr. Bezeng Fidelis is the regional president for the University of Buea. This trade union has held not one but more strikes in the past years demanding for various changes concerning their compensation packages. Some of these strikes are seen below with some of the strike notice attached as appendix.

The first strike took place in 2011, demanding for an increase in their minimum salary from about 23000 FRS to 25000 FRS. This ended with the government increasing the salary and granting special status to the supporting staff of the universities. This special status reflected on the employee social welfare, working conditions, technical allowances, research allowances and all other allowances. The second strike was in March 2019, this was the relaunch of a strike action that was to happen on the 28 of November 2018. They demanded for minimum salary increase to 36270 FRS, for a new salary division of category 1 to 12, for their special status given during the 2011 strike to be re-adopted. The strike ended after meeting up with their demands

On the 3^rd February 2022, a meeting was held to talk on the strike action against CNPS, on the non-payment of their dues like maternity leave, family allowances and retirement benefits. It was agreed that a follow up meeting will be held to provide lasting solutions to the problems and the strike action was suspended till the 15^th of March 2022.

Recently in February 2024, they scheduled another strike to demand for their pension pay from CNPS and increase in their minimum salary, but a dialogue between the staff representatives and administration and government representatives was held to negotiate on the terms for the strike. They concluded by postponing the strike, waiting for the administration and government to react to their demands and if not, the strike will take place.

Despite the importance of higher education, these strike actions show that there is dissatisfaction amongst the staff concerning their compensation packages. This study aims to investigate the specific elements of compensation packages that have the most significant impact on employee job satisfaction in higher institutions and hence to answer the questions below.

1.4. Research Questions

The research question of this study is;

How does compensation packages contribute to the job satisfaction of non-academic staff in the University of Buea?

Specific research questions include;

1. How does monetary compensation contribute to the job satisfaction of non-academic staff?
2. Does non-monetary compensation contribute to the job satisfaction of non-academic staff?

1.5 Research Objectives.

The research objective of this study is;

To evaluate the effect of different compensation packages on the job satisfaction by non-academic staff in the University of Buea.

Specific research objectives include;

1. To assess the effect of monetary compensation on the job satisfaction by non-academic staff.

To examine the effects of non-monetary compensation on the job satisfaction by non-academic staff.