Browsing by Author "Masoud, Mohamed Ali"

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    Compensation Practices and Employees’ Performance in the Insurance Companies in Nairobi City County, Kenya
    (Kenyatta University, 2025-11) Masoud, Mohamed Ali
    The insurance companies in Kenya have been posting poor employee performance results in the recent past. These instances could be seen from the increase in fraud cases involving employees in the insurance companies in Kenya. Employees’ performance is fundamental for any organization, thus ought to be monitored. This in the premise that optimal employees’ performance has a ripple effect on organizational performance. One way of boosting employees’ performance is through compensating them well. This study therefore sought to research on the effect of compensation practices on employees’ performance in the insurance companies in Nairobi City County, Kenya. Precisely, the study investigated the effect of salaries and wages, Professional allowances, Individual incentives and, Fringe benefits on employees’ performance in the insurance companies in Nairobi. The equity theory, the expectance theory, the agency theory and the balanced scorecard theory were reviewed so as to support this proposal. The study used the descriptive research design. The target population was drawn from a pool of insurance companies operating in Nairobi. The stratified random sampling method was employed in picking the sample size of 162 units from the target population of 270 units. The employees in the human resources, finance and sales departments of the insurance companies in Nairobi constituted the earmarked respondents to this study. This current study employed primary quantitative data which was collected via questionnaires. Several diagnostic tests such as the test for normality, linearity, autocorrelation and multicollinearity were carried out in this study. F-test in ANOVA as well as the coefficient of determination was conducted before ultimately running the regression model. The p-value statistics from the regression model was used in answering the research questions. Ultimately, conclusion and recommendation were given. The study used tables, graphs, charts and plots in presenting the overall trend of the data. The study revealed that salaries and wages, professional allowances, individual incentives and fringe benefits had a positive significant effect on employees’ performance. The study concludes that offering competitive salaries helps attract top talent in a highly competitive industry. Professional allowances alleviate the financial burden of job-related expenses, leading to higher job satisfaction. Personalized incentives resonate more with employees, as they reflect individual preferences and values leading to higher levels of motivation and engagement, as employees feel their unique contributions are recognized and valued. The study recommends that the companies should conduct regular market surveys to ensure that salary offerings are competitive with industry standards. The companies should implement a structured bonus system tied to individual and team performance metrics. The companies should develop programs that reward employees for achieving specific performance metrics, such as sales targets or customer satisfaction scores. The companies should offer a strong health plans that cover a wide range of medical services, including mental health support.