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International Journal of Academic Research in Accounting, Finance and Management Sciences

Open Access Journal

ISSN: 2225-8329

The Influence of Employee Recognition on Employee Engagement: The Moderating Role of Salary Satisfaction

Esther Mensema Ewool, Samuel Awuni Azinga, Naail Mohammed Kamil

http://dx.doi.org/10.6007/IJARAFMS/v11-i3/10554

Open access

The present study attempts to empirically examine, and contribute new knowledge to the existing literature, pertaining the association between employee recognition, salary satisfaction, and employee engagement, with emphasis on the moderating role of salary satisfaction in the Ghanaian banking system. A quantitative research approach was employed in this study, whereby a sample of 455 respondents comprising employees of consolidated bank Ghana from Kumasi and Accra central were sampled using a simple random sampling technique. Employing SPSS and AMOS versions 24.0, structural equation modeling SEM was used to analyze the collected data. Out of the four (4) main hypotheses of this study, three (3) were supported whilst one (1) was not. In particular, after controlling for four relevant demographic variables, namely educational level, tenure, employee level and income, the study revealed that employee recognition has a positive effect on salary satisfaction and negative effect on employee engagement; Salary satisfaction also has a positive influence on employee engagement and positively moderates the relationship between employee recognition and employee engagement. The study concludes that the impact of employee recognition on employee engagement is stronger in light of increased salary satisfaction. Several other implications from the study were further discussed.