COMPENSATION, WORKING CONDITIONS AND EMPLOYEE SATISFACTION IN KILIFI EXPORT PROCESSING ZONES, KENYA

Abstract

Employee satisfaction is crucial for job performance and employee productivity. A dissatisfied employee can be a liability with less or no organizational commitment. There are a number of factors identified by researchers to play a major role in influencing employee satisfaction but this study embarks on compensation and working conditions in Kilifi Export Processing Zones, Kenya. The independent variables are compensation and working conditions. The dependent variable is employee satisfaction. The study employed the descriptive research design to answer to the two objectives on whether or not there exist a relationship between compensation, working conditions and employee satisfaction. The primary data was collected through open and close ended questions administered to the employees of the firms categorized either as manufacturing, commercial and service. The study found that compensation has a higher correlation to employee satisfaction compared to working conditions. The study also revealed that compensation and working conditions vary across the different firms. In general compensation, employees’ benefits and permanent employment is not only significantly associated with increased employee satisfaction but as well increased productivity The study sheds light on the measures the policy makers need to address in relation to employees satisfaction, formulate solutions and implement them in order to brand the Export Processing Zones a competitive employer.