A STUDY ON THE EFFECT OF MONETARY REWARDS ON EMPLOYEE JOB SATISFACTION IN CAMEROON’S PUBLIC SECTOR

CHAPTER ONE INTRODUCTION 1.1 Background of the Study Employee performance is fundamental to the overall success of any organization, making employees the most vital asset within a company (Yang, Li & Han, 2018). Therefore, attracting and retaining skilled personnel is essential. Research by Gupta and Shaheen (2016) emphasizes that highly competent individuals positively influence organizational outcomes. As such, companies are encouraged to invest in their workforce by boosting motivation and commitment to improve performance. In today’s work environment, employees expect fair rewards for their achievements, and their continued loyalty depends largely on whether their needs are met. To foster this loyalty and reinforce employee-employer relationships, organizations should incorporate financial incentives such as bonuses, profit-sharing, promotions, and stock options into their human resource strategies (Al-Belushi & Khan, 2017). Monetary incentives are defined as tangible financial rewards—like direct cash payments—granted to employees (Quadri, 2019). These incentives are typically categorized into two groups: tangible and moral. Moral incentives are indirect, often taking the form of recognition, certificates, or commendations, while tangible incentives involve direct financial compensation such as bonuses (Quadri, 2019). Employee job satisfaction plays a key role in the functioning of an organization, influencing not only individual well-being and productivity but also the overall efficiency of the institution (Chong & Law, 2016). In the Public Service sector—where the delivery of essential services is critical—it becomes even more important to understand and improve job satisfaction among employees (Hoskin, 2016). The Public Service includes a variety of governmental entities tasked with providing public services such as healthcare, education, policing, and administrative duties (Rainey, 2009). Within this sector, monetary incentives like salaries, bonuses, allowances, and other financial benefits are vital elements of compensation packages (Idowu, Soyebo & Adeoye, 2019). These financial rewards not only help attract and retain qualified professionals but also serve to motivate and reward their contributions toward institutional goals. Furthermore, the rigid structures and regulatory systems that characterize public sector organizations often limit the flexibility of compensation strategies. In such settings, monetary rewards can strongly influence employees’ sense of fairness, equity, and organizational commitment (Yang et al., 2018). However, the relationship between financial compensation and job satisfaction in the public sector is both complex and multifaceted. While competitive salaries and comprehensive benefits can help attract workers, other factors such as job stability, career development opportunities, and the intrinsic value of the work also play significant roles in shaping employee satisfaction and engagement (Idowu, Soyebo & Adeoye, 2019). Given the diverse backgrounds of employees in the Public Service—including differences in education, profession, and ethnicity—understanding the influence of financial rewards on job satisfaction becomes even more challenging. Some studies have found that higher wages correlate with improved job satisfaction, highlighting the importance of financial incentives in meeting employees’ basic expectations (Lestari & Haryono, 2020). On the other hand, some research suggests that non-financial aspects—like job autonomy, organizational values, and opportunities for personal growth—may have a greater effect on job satisfaction than financial rewards alone (Lestari & Haryono, 2020). Moreover, the effect of financial rewards on job satisfaction can vary depending on several contextual factors such as organizational size, industry-specific challenges, and legal constraints (Yang et al., 2018). Public institutions operating under tight budget constraints may find it difficult to offer competitive pay, which can, in turn, impact staff morale and retention. Although interest in the influence of financial incentives on job satisfaction within Cameroon’s Public Service is growing, there remain notable gaps in the research. As a result, this study aims to explore how monetary benefits impact employee job satisfaction in Cameroon’s Public Service. 1.2 Statement of the Problem Job satisfaction is a key determinant of the effectiveness and success of organizations within Cameroon’s Public Service. It encompasses an employee’s personal evaluation of their work experience, including elements like the working environment, the nature of the job, and the rewards received. Job satisfaction significantly affects employee motivation, organizational loyalty, and retention (Nurlaila & Nurdin, 2020). Financial incentives have emerged as a major area of focus in this context, given their direct impact on employees’ financial security and their perception of being valued by the organization (Emerole, 2015). Monetary rewards—including salaries, bonuses, allowances, and other financial benefits—are vital in shaping job satisfaction among public servants (Safiullah, 2015). However, Cameroon’s Public Service operates under a bureaucratic system with complex rules and budgetary constraints, making it difficult to design and implement financial incentive programs that fully meet the diverse expectations of employees (Yang et al., 2018). Despite efforts by the government to offer attractive monetary benefits as a means to recruit and retain skilled personnel, questions remain regarding the effectiveness of these benefits in boosting job satisfaction and overall organizational performance. This uncertainty underpins the necessity of investigating the impact of financial incentives on job satisfaction within Cameroon’s Public Service. 1.3 Objective of the Study The main aim of this study is to examine the impact of monetary benefits on employee job satisfaction in Cameroon’s Public Service. The specific objectives are to: i. Analyze how monetary benefits contribute to employee job satisfaction within Cameroon’s Public Service. ii. Assess the influence of financial incentives on employee retention in the sector. iii. Investigate the relationship between monetary benefits and employee job satisfaction. iv. Offer recommendations for improving financial incentive programs to enhance job satisfaction among public service workers in Cameroon. 1.4 Research Questions This study will be guided by the following questions: i. To what extent do monetary benefits influence employee job satisfaction in Cameroon’s Public Service? ii. How do financial incentives affect employee retention rates within the sector? iii. Is there a measurable relationship between monetary benefits and job satisfaction among public service employees? iv. What strategies can be employed to optimize financial benefit programs to improve employee satisfaction in Cameroon’s Public Service? 1.5 Significance of the Study The findings of this research will be valuable to the Cameroon Civil Service Commission as it will help identify the shortcomings of current monetary incentive systems and suggest ways to enhance their effectiveness. The study aims to provide actionable insights that will guide the development of incentive packages better aligned with employees’ needs and motivations. Ultimately, these improvements could lead to higher employee performance and commitment, thereby increasing overall organizational efficiency. Additionally, this study holds academic value by enriching the literature available on the subject. It will serve as a reference for future researchers interested in exploring this or similar topics, helping to fill existing gaps in knowledge. 1.6 Scope of the Study This research is focused on exploring how monetary benefits impact job satisfaction among employees in Cameroon’s Public Service. Specifically, the study will examine the extent of this impact, its effect on employee retention, the correlation between financial rewards and satisfaction levels, and suggest ways to improve current compensation schemes. Geographically, the study is limited to the Ministry of Education in Cameroon. 1.7 Limitations of the Study As with most academic endeavors, this study encountered some limitations. Financial constraints restricted access to some resources and limited the scope of data collection tools such as internet services, questionnaires, and interviews. As a result, the sample size was modest. Additionally, the researcher had to balance this study with other academic responsibilities, which slightly reduced the amount of time that could be dedicated to the research process. 1.8 Definition of Terms Employee Job Satisfaction: Refers to the overall sense of fulfillment and contentment an employee derives from their job, considering factors such as job role, work environment, interpersonal relationships, and organizational support. Monetary Benefits: These are financial compensations provided by an employer, including basic salary, bonuses, allowances, and other direct financial rewards. Public Service: This includes government-operated institutions and agencies responsible for delivering essential services like education, healthcare, and law enforcement to the general public. Non-Monetary Factors: These are non-financial elements that influence job satisfaction, such as career growth opportunities, work-life balance, job autonomy, recognition, and the meaningfulness of the work being performed. REFERENCES Al-Belushi, F., & Khan, F. R. (2017). Impact of monetary incentives on employee’s motivation: Shinas college of technology, oman-a case study. International Journal of Management, Innovation & Entrepreneurial Research EISSN, 2395-7662. Chong, V. K., & Law, M. B. (2016). The effect of a budget-based incentive compensation scheme on job performance. Journal of Accounting & Organizational Change. Emerole, O.B. ( 2015) Effect of non-monetary rewards on productivity of employees among selected Government parastatals in Abia State, Nigeria. 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