Vol. 7 No. 4 (2017): Vol 7, Iss 4, Year 2017

Effects of compensation on the job performance among hospital employees!! - a meta analysis

Dayanandan R
Professor, Hawassa University, Hawassa, Post Box: 692, Ethiopia
Published December 30, 2017
  • Salary, Rewards, Indirect Compensation, Employees Job Performance
How to Cite
R, D. (2017). Effects of compensation on the job performance among hospital employees!! - a meta analysis. Journal of Management and Science, 7(4), 450-476. https://doi.org/10.26524/jms.2017.68


Hospitals are considered as life saving institutions and the service quality through the better performance of employees is an essential parameter to serve the
customers. To sustain within the competition and to achieve the competitive advantage, it is vital to focus on the attitudes and job performance of the employees. Failure to design appropriate compensation system will have unfavorable impact on productivity and job satisfaction and overall effectiveness of the hospital. Though compensation in terms of salary increment, reward, health insurance, workers compensation, retirement plan and paid holiday were applied in the study hospital, the effect of such compensation was not tested still. Hence, the aim of this paper is to assess the effect of compensation on job performance of hospital employees. In order to address the objective, both primary and secondary sources of data were used. The required data was collected from 206 employees identified through stratified random sampling technique. The data collected through questionnaire was analysed by SPSS ( version 21) and descriptive statistics such as frequency, percentage, mean and standard deviation and inferential statistics such as onesample t-test, correlation and multiple linear regressions were used arrive the meaningful results. The findings show that 65% of the variance of the employee performance was significantly explained by three independent variables namely; compensation, salary and rewards. It is concluded that there is a significant effect of salary, reward and indirect
compensation on employee job performance in the hospital. It is recommended that hospital management needs to improve its compensation system time to tome and further studies to be conducted to investigate the strategies used to deal with the problems of employees recruitment and retention among others.


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