THE IMPACT OF DIFFERENTIAL WAGE RATES ON JOB SATISFACTION

ABSTRACT

This project aims at examining importance of difference in wages rate at different level of workers in an organization. It will also look into how salaries will motivate to put in their best, to get the best outcome in an organization. The influence of the differential wage system on the employee satisfaction in Local government structure has not been examined. The objectives of the study were the examination of the role of recognition, allowances, training and promotion on employee satisfaction in Local government of Somolu. The study was based on the Hertzberg’s Two Factor Theory, McGregor’s Theory X and Theory Y, and the Maslow’s hierarchy of needs Theory. Descriptive research design was used in this study. The target population of this study was5,100 staff working for the Local government of Somolu. A sample size of 371 respondents was utilized. This study used a questionnaire for the purposes of data collection. The pilot study was undertaken in Somolu L.G.A, Lagos state using 10% of the respondents that is 37 respondents. The validity of the data collection instrument was examined during the pilot study using a set of experts in the area of wage management and employee satisfaction as well as the supervisors.The reliability of the data collection was examined through the use of the Cronbach alpha coefficient of a threshold of 0.7 and above.In respect to the recognition metrics, the study concluded that there are diverse practices used in recognition practices across the Local government of Somolu. Thestudy concluded that there were no harmonized practices in relations to allowances issued at the Local government of Somolu. The study concluded that there are very low satisfaction levels with the training opportunities within the Local government of Somolu. The results indicated that the unit increases (individually) in recognition, allowances, training and promotion while keeping the other three independent variables constant would lead to a negative influence on the employee satisfaction levels. This is due to regression coefficient (B) values of -0.079, -0.132, 1.498, and -0.647 for recognition, allowances, training, and promotion respectively. These results suggest that the four independent variables don’t have the capacity to positively and individually influence employee satisfaction without the input of the other variables. Therefore the following model was used; Employee Satisfaction = 6.045-0.079 (Recognition)-0.132 (Allowances)-1.498(Training)- 0.647 (Promotion).