Salary and employee performance in Isingiro District Local Government. A cross-sectional study.
DOI:
https://doi.org/10.64792/x1e16e36Keywords:
Salary, employee performance, Employee motivation, Job satisfaction, Local government, Financial incentivesAbstract
Background
The study aimed to establish the influence of salary on employee performance in Isingiro District Local Government.
Methodology
The study adopted a cross-sectional mixed-methods research design, incorporating quantitative and qualitative approaches. The target population comprised 232 staff of Isingiro District Local Government, from whom 144 respondents were selected using the Krejcie and Morgan (1970) table. Simple random and purposive sampling techniques were used. Data were collected using structured self-administered questionnaires and interview guides. Quantitative data were analyzed using SPSS version 25, descriptive statistics, and Pearson correlation, while qualitative data were analyzed thematically and through content analysis.
Results
Analysis was based on 117 completed responses. Age distribution showed 42 respondents (35.9%) aged 40-49 years, 33 (28.2%) aged 50 years and above, and 21 (17.9%) each aged below 30 and 30–39 years. Salary attracted and retained skilled employees (M=4.38, SD=.763), improved job satisfaction and wellbeing (M=4.28, SD=.829), encouraged skills development (M=4.38, SD=.808), reduced distraction from financial concerns (M=4.32, SD=.806), and linked performance with incentives (M=4.42, SD=.768). Thematic findings emphasized motivation, perceived salary fairness, retention, non-monetary benefits, and limited salary budgets. Pearson correlation established a strong positive, statistically significant relationship between salary and employee performance (r=.618, p=.000, N=117), indicating that higher salary was associated with better performance. Overall, salary influenced employee performance through motivation, satisfaction, retention, concentration, professional development, and performance-related incentives.
Conclusion
Salary was found to have a strong and consistently positive influence on employee performance across the study findings.
Recommendation
The District Local Government should implement performance-based salary enhancement mechanisms that appropriately recognize and reward employees for improved performance.
References
1. Bakker, A. B., & Demerouti, E. (2017). Job demands–resources theory: Taking stock and looking forward. Journal of Occupational Health Psychology, 22(3), 273–285. https://doi.org/10.1037/ocp0000056
2. Gerhart, B., Rynes, S. L., & Fulmer, I. S. (2009). Pay and performance: Individuals, groups, and executives. Academy of Management Annals, 3(1), 251–315. https://doi.org/10.5465/19416520903047269
3. Gupta, N., & Shaw, J. D. (2014). Employee compensation: The neglected area of HRM research. Human Resource Management Review, 24(1), 1–4. https://doi.org/10.1016/j.hrmr.2013.08.007
4. Jenkins, G. D., Jr., Mitra, A., Gupta, N., & Shaw, J. D. (1998). Are financial incentives related to performance? A meta-analytic review of empirical research. Journal of Applied Psychology, 83(5), 777–787. https://doi.org/10.1037/0021-9010.83.5.777
5. Judge, T. A., Piccolo, R. F., Podsakoff, N. P., Shaw, J. C., & Rich, B. L. (2010). The relationship between pay and job satisfaction: A meta-analysis of the literature. Journal of Vocational Behavior, 77(2), 157–167. https://doi.org/10.1016/j.jvb.2010.04.002
6. Kahn, W. A. (1990). Psychological conditions of personal engagement and disengagement at work. Academy of Management Journal, 33(4), 692–724. https://doi.org/10.5465/256287
7. Ryan, R. M., & Deci, E. L. (2017). Self-determination theory: Basic psychological needs in motivation, development, and wellness. Guilford Press.
8. Shaw, J. D., & Gupta, N. (2015). Let the evidence speak again! Financial incentives are more effective than we thought. Human Resource Management Journal, 25(3), 281–293. https://doi.org/10.1111/1748-8583.12080
Downloads
Published
Issue
Section
License
Copyright (c) 2026 FULGENCE TWINOMUGISHA, Dr.Atwiine Johnson, Ms Kembabazi Juliet (Author)

This work is licensed under a Creative Commons Attribution 4.0 International License.
This is the most open of the Creative Commons licenses. It allows others to copy, share, remix, adapt, and build upon the material — even for commercial purposes — provided that proper credit is given to the original author(s).
You are free to:
-
Share — copy and redistribute the material in any medium or format.
-
Adapt — remix, transform, and build upon the material for any purpose, even commercially.
Under the following terms:
-
Attribution — You must give appropriate credit, provide a link to the license, and indicate if changes were made. You may do so in any reasonable manner, but not in a way that suggests the licensor endorses you or your use.
-
No additional restrictions — You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.
Notices:
-
You do not have to comply with the license for elements of the material in the public domain or where your use is permitted by an applicable exception or limitation.
-
No warranties are given. The license may not give you all the permissions necessary for your intended use. Other rights, such as publicity, privacy, or moral rights, may limit how you use the material.

