DETERMINING THE EFFECT OF FINANCIAL AND MORAL INCENTIVES ON JOB SATISFACTION OF TEACHERS AT HIGHER EDUCATION INSTITUTES

Abstract

One of the main objectives of this study is to determine the empirical effect of financial and moral incentives on job satisfaction of teachers at higher education institutes. Financial incentives are monetary or tangible in form; two main financial types of incentives included in the study are promotion and group insurance. Moral incentives are non-monetary or intangible in nature; two main types of moral incentives are also included in the study, i-e Achievement and Recognition as well as Growth. Job satisfaction is considered as dependent variable in the study. Research instrument used to collect primary data was closed ended questionnaire which was adopted from previous relevant research studies. Primary data was collected from one hundred teachers working in three different universities located in Jamshoro city, Sindh. Data was analyzed using different statistical techniques like Cronbach alpha, Descriptive Statistics, Mean, Standard Deviation, Skewness and Kurtosis, Correlation Coefficient R and Structured Equation Modeling. All results of Descriptive statistics, correlation analysis, and Factor loadings, T statistics and P values of Structured Equation Modeling shown positive and significant effect of financial and moral incentives on job satisfaction of teachers. Only one hypothesis related to one of the moral incentives, Growth, is rejected, all other hypotheses are accepted. This research study concludes positive and significant effect of three incentives, two financial incentives i-e Promotion and Group Insurance, and one moral incentive i-e Achievement and Recognition on job satisfaction of teachers. Findings of research studies are practical guidance for top management of higher education institutes to increase job satisfaction and devise attractive incentives policy for teachers. It is also a valuable guidance for other private higher education institutes to increase job satisfaction of teachers as the proposed study only covers three largest and well recognized public sector universities of the country.