The relationship between employee benefits and customer satisfaction : commercial banks in Murang'a Municipality

Abstract

Employee benefits is a very sensitive issue to any organization because they are offered fundamentally to attract, recruit, retain, motivate and develop employees for greater organizational performance. The purpose of this study was to examine the relationship between employee benefits and customer satisfaction. The study was carried out in seven commercial banks in Murang'a Municipality. The study design was a survey of sampled teller staff and customers from the seven commercial banks. Purposive sampling was used to select the sample population. The study used two questionnaires, one for teller staff and the other for bank customers from the seven banks to collect data. The data was then coded and entered into SPSS software and this formed a database that was subjected to analysis. Data was analyzed using the Statistical Package for Social Sciences (SPSS). Data presentation was in the form of descriptive statistics such as means and standard deviations and Pearson correlation coefficient, frequency tables, pie charts and bar graphs. The Pearson correlation coefficient between customer and employee satisfaction was computed to detect linear relations. Subsequently, the table of means and standard deviations and the appropriate correlation matrix was constructed from the results. The table of means and standard deviations indicates that sending school fees scored the highest satisfaction score with a mean of 3.28 and a standard deviation of .905. The analysis of the Pearson correlation matrix indicates that few of the observed relationships were very strong except the bivariate correlation between payment of bills and entertainment allowance which revealed a perfect positive relationship (r=1). According to the findings of the study, employee benefits are invaluable for organizational performance. The study recommends that the use of the cafeteria system of awarding benefits and a harmonized system of awarding benefits will lead to higher organisational performance in terms of customer satisfaction