THE INFLUENCE OF COMPENSATION ON EMPLOYEE MOTIVATION IN TANZANIAN LOCAL GOVERNMENT AUTHORITIES: A CASE OF MWANZA CITY COUNCIL, TANZANIA
The study investigated the influence of compensation on employee motivation at Mwanza City Council (MCC), focussing on salary packages, Extra duty, and non-monetary benefits. Guided by Herzberg’s Two-Factor Theory, the research assumed that motivators like recognition and training drive motivation, while hygiene factors such as salary and allowances prevent dissatisfaction. Quantitative data were gathered via a survey and analysed using descriptive statistics, regression, and correlation through SPSS. The instruments used were highly reliable, with a Cronbach’s Alpha of 0.70. Findings revealed that while compensation is critical to motivation, current salary packages and allowances at MCC are inadequate. Employees expressed dissatisfaction with salary increments and allowances, such as extra duty, medical, and transfer allowances, citing insufficient amounts and poor timing, which negatively impacted motivation. The inconsistent provision of non-monetary benefits, such as recognition and training, further reduced employee motivation. Health programs were valued but poorly implemented. Correlation analysis showed significant positive relationships between salary packages (r = 0.465), Extra duty (r = 0.545), non-monetary benefits (r = 0.624), and employee motivation. Regression analysis confirmed that salary, monetary allowances, and non-monetary benefits are strong predictors of employee motivation. The study concludes that MCC must improve compensation structures and non-monetary benefits to enhance employee motivation, satisfaction, and retention. This is essential for maintaining a motivated workforce, crucial for the local government authority’s effectiveness.
Key words: Influence, Compensation, Motivation, Employee, Mwanza City Council(MCC)
