Impact of Compensation Packages on Employees Job Satisfaction: Moderating Role of Environmental Uncertainty in Banking Institutions of Kabul

Abstract

This study investigates the impact of compensation on employees' job satisfaction in private banks located in Kabul, Afghanistan. Additionally, it explores the moderating role of environmental uncertainty in this relationship. The study aims to determine the extent to which compensation packages, affects employee job satisfaction, while considering the influence of environmental uncertainty as a moderating variable. Cross-sectional quantitative data is collected through an adopted self-administered survey questionnaire from employees (N=660) of private banks in Kabul. Statistical analyses, including descriptive analysis, reliability analysis, correlation analysis, ANOVA, and regression analysis were conducted using the SPSS. The findings of this study indicate that compensation packages have a significant impact on employee job satisfaction. It reveals that employees' perception of their compensation, including salary, benefits, and incentives, plays a crucial role in determining their level of job satisfaction. Higher levels of compensation are positively associated with increased job satisfaction among employees in private banks.  Furthermore, the study highlights the moderating role of environmental uncertainty in the relationship between compensation packages and job satisfaction. Environmental uncertainty refers to the volatility, complexity, and unpredictability of the external business environment. The findings suggest that organizations should carefully design and implement compensation packages that align with employees' needs and expectations, considering the contextual factors of the business environment.