Influence of Compensation Management on the Commitment: the Mediating Role of Job Satisfaction at The Youth Employment Agency

Abstract

ABSTRACT The study examined the influence of compensation management on employee commitment and controlled for the mediating effect of job satisfaction among workers in Youth Employment Agency [YEA], Accra. The study was quantitatively approached alongside the use of the explanatory research design. The target population included some 280 workers at the YEA. Through simple random sampling technique, 130 structured questionnaires were issued but 126 were retrieved for the data analysis. Pearson product-moment correlation, multiple regression and mediation analysis were conducted using the SPSS for the data analysis in respect of the specific research objectives. The study confirms compensation management has a significant effect on employee commitment and job satisfaction among employees at the YEA. Financial compensation contributes significantly in a positive manner to predicting the change in employee commitment but non-financial compensation fails in this regard. Similarly, compensation management accounts for a statistically significant positive substantial change in job satisfaction among the workers at the YEA, however, this change is caused strongly and significantly by only non-financial compensation. Finally, the study confirms job satisfaction significantly mediates fully and positively the predictive relationship between compensation management and employee job satisfaction at the YEA. It was recommended that management of YEA should conduct periodic job satisfaction audits should be carried out so that timely insights could be provided to guide managerial decision-making as to how to blend pro-HR interventions including compensation management to enhance the state of job satisfaction in order to enhance the state of job commitment among employees at the YEA