The Effect of Employee Benefits on Employees’ Job Satisfaction in The Case of Awash Bank S.C
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Date
2026-10-03
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Addis Ababa University,
Abstract
He study mainly intends to investigate how indirect financial benefits and non-monetary benefits influence employees’ job satisfaction at Awash Bank S.C. Specifically, the study addressed the effect of retirement benefits, health and insurance benefits, paid leave, career development, recognitions and work environment on employees’ job satisfaction in Awash Bank. The study employed descriptive and explanatory research designs with mixed research approach (qualitative and quantitative). Primary data were gathered via structured questionnaire and interviews, while secondary data were collected from pertinent journals, books and reports. The target population of the study consisted the head office employees of the Bank. Stratified random sampling for the quantitative data and purposive sampling for the qualitative data were used. Out of the distributed 144 questionnaires, 140 valid responses were collected and analyzed using SPSS version 26. The findings revealed that employee benefits have a positive and statistically significant effect on employees’ job satisfaction. Among the independent variables, paid leave reported higher grand mean, showing employees of the Bank are highly valuing leave related benefits since it improves their work life balance. Additionally, retirement benefits and heals and insurance benefits also showed a strong positive contribution towards employees’ job satisfaction in the Bank. Similarly, recognition, career development and supportive work environment positively influenced employee commitment, morale and satisfaction. The regression analysis further confirms that all selected variables have positive and statistically significant effect on employees’ job satisfaction. The study concluded that employee benefits play a significant role in enhancing employees’ job satisfaction. Therefore, the study recommends the Bank to strengthen its benefit packages (its consistency, transparency and accessibility) so as to obtain better employee satisfaction. Additionally, the Bank should enhance the promotion opportunities, recognition programs and other employee wellness initiatives to further improve employees’ overall job satisfaction
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Keywords
Awash Bank, Employee Benefits, Indirect Compensation, Job Satisfaction, Non-monetary benefits, Paid leave, Recognition, Retirement benefits