Investigation of Staff Perceptions regarding the Impact of Remuneration Equity on Job Satisfaction in a Zimbabwean Local Authority: The Case of Chaminuka R.D.C

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Abstract

The research sought to investigate staff perceptions regarding the impact of remuneration equity on job satisfaction and to recommend appropriate strategies for improving the remuneration system as an instrument for enhancing job satisfaction at Madziwa Rural District Council, a local authority in Mashonaland Central province of Zimbabwe. This was accomplished through the use of a case study research design targeting a total population of seventy five (75) permanent members of staff of council. A sample of forty five (45) non managerial and four (5) managerial members of staff was selected for the study. The sample was stratified into categories of executive, supervisory and lower level employees. Semi structured interviews, questionnaires and organizational records such as Collective Bargaining Agreements were used for purposes of data collection. Both qualitative and quantitative data were analyzed through the use of narrative accounts, graphs and pie charts. Major findings highlighted the fact that staffs were experiencing high levels of remuneration inequity, which had impacted negatively on job satisfaction levels. Council has a formalised job evaluation system in place. However, Council was failing to pay staff salaries on time, although the salary levels are fairly competitive for managerial levels of staff though the case was different for lower levels of staff. Moreover, Council is failing to pay staff incentives due to shortage of funds to finance its income generating projects. Although the organisation's remuneration caters for both internal and external equity, the majority of staff members feel a general sense of dissatisfaction with their jobs due to late payment of salaries coupled with salary backlogs. The recommendations from the findings were that CRDC should find strategies for enhancing revenue collection as well as explore options for investments.

Key Words: Remuneration equity, Internal Equity, External Equity, Job evaluation, Collective Bargaining, Remuneration Relativity, Individual Relativity.

Introduction

The issue of remuneration equity is an issue that has grappled the world of work for a very long time as it has an impact on people' s levels of disposable incomes and consequently their overall standards of living. Zimbabwe experienced unprecedented levels of hyperinflation during the first decade of the 21st millennium. The economic meltdown that prevailed in Zimbabwe during the first decade of the new millennium, has had a severe impact on the standard of living of the general populace. The earnings of the majority of working class people were severely eroded. The official introduction of a multi- currency system in 2009 saw the country adopt the United States dollar and the South African rand, as the major forms of legal tender.. Chaminuka Rural District Council (CRDC), was established in 1993 in accordance with the provisions of the Rural District Council Act. The council has jurisdiction over Shamva district of Mashonaland Province of Zimbabwe .The council has a mandate of providing infrastructure such as roads, schools, hospitals, clinics, boreholes and bridges, recreational facilities, social services. It also services land for both commercial and residential purposes within the context of sustainable environmental practices. Council is heavily dependent on traditional sources of revenue which include property and land taxes, user charges, grants, sand sales, beer sales and loans from the central government. The growth of Shamva district, over the years ,has seen an increase in staff being employed by council and currently has a staff compliment of seventy seven (77) permanent and six (6) contract employees. Casual employees are hired as and when the need arises. Recent economic developments in the country have resulted in the Council experiencing numerous staff remuneration related problems. Between 2006 and 2007, Council minutes highlighted that remuneration issues were at the centre of the management- staff discourse. …