Influence of Work Environment Factors on Employee Job Satisfaction: The Case of Abay Insurance S.C
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Date
2026-06-02
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Addis Ababa university
Abstract
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This study investigates the impact of work environment factors on employee job satisfaction
at Abay Insurance S.C. using a descriptive survey and explanatory research design with a
quantitative approach. A sample of 281 employees from the head office and branch offices
participated in the study. Data were collected through questionnaires and analyzed using both
descriptive and inferential statistical techniques.
Descriptive tools, including frequency, percentage, mean, and standard deviation, were
employed, while correlation and regression analyses were used to examine relationships
between the dependent and independent variables. Qualitative data obtained through open-
ended questions were analyzed using narrative analysis. The study focused on five key
factors influencing employee satisfaction: work and work environment, recognition,
communication practices, benefits and compensation, and management support.
The findings revealed that employees who perceive stronger management support and
recognition tend to report higher levels of job satisfaction, whereas benefits and
compensation received relatively lower ratings compared to the other factors. The analysis
also indicated that information exchange within the organization has a moderate relationship
with both management support and recognition, highlighting the role of communication in
shaping employees‘ perceptions of their work environment. Overall, the findings suggest the
need for improvements in compensation practices, recognition systems, and internal
communication.
The study provides valuable insights for the management of Abay Insurance S.C. by
identifying specific areas for improvement to enhance employee satisfaction and
productivity. Furthermore, it contributes to the limited empirical literature on employee job
satisfaction in the Ethiopian insurance sector and may serve as a useful reference for future
research and organizational decision-making
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Keywords
Work Environment, Employee Job Satisfaction