Performance Metrics and Job Satisfaction in Life Insurance Industries in Nepal

Abstract

This study aims to analyze the effect of performance appraisal systems on employees’ job satisfaction in life insurers in Nepal. A descriptive-correlational research design was adopted among 86 employees through a five-point Likert questionnaire. The indicators of performance appraisal, included training and development, job analysis and design, performance-based compensation, human resource decision, supervisory understanding and communication, and employee motivation were examined. The correlation, descriptive statistics, and reliability analyses were performed using SPSS Version 20. The finding showed a positive relationship between overall performance appraisal and job satisfaction. The findings indicated that training and development, employee motivation, job analysis and design, and performance-based compensation were significantly associated with job satisfaction in life insurers. Performance-based pay had the strongest relationship with job satisfaction, while supervisory communication and perceived fairness were insignificant. The study concluded that good performance appraisal systems were associated with job satisfaction by enhancing training and development opportunities, reinforcing reward mechanisms, and improving organizational communication. Thus, the life insurers in Nepal could improve performance appraisal systems by increasing transparency, fairness, and aligning appraisal outcomes with rewards.