Perceived compensation, employee motivation and financial stability among staff members of Uganda Red Cross Society Central, Kampala District.

Abstract

The study aimed at examining the relationship between perceived compensation, employee motivation and financial stability among staff members at Red Cross central (Kampala). The study adopted a quantitative study design which was correlation in nature with a population of 50 employees. Simple random sampling technique was used to draw a sample of 44 respondents from the population. Data was collected from respondents using self-administered standard questionnaire and entered in the computer for analysis through Statistical Package for Social Science (SPSS) software version 23. Descriptive statistics showed that 65.9% of the respondents were female and 34.1% were male, majority were between 18-29 years (45.5%). Results from Pearson product-moment correlation coefficient (r) further indicated that there was a positive relationship between perceived compensation and employee motivation, (r=.609**, p=.000). However, there was a negative relationship between employee motivation and financial stability (r= -.555**, p=.000) as well perceived compensation and financial stability (r= - .650**, p=.000). Therefore, the present study provides a basis and implications for further investigation on the relationship between perceived compensation, employee motivation and financial stability among employees of different organizations in Uganda. It was recommended that the management of Red Cross Kampala Central needs to put more effort in motivating employees at the work place in order to improve their compensation perception and financial stability.