Psychological Contract on Employee Engagement: A Case of National Social Security Fund in Nairobi City County, Kenya
Warfa, Hadi Hared
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Employee engagement is a vital source of competitive advantage, particularly in knowledge-intensive organizations. However, there is low employee engagement at National Social Security Fund in which the organization has been facing poor relationships among amongst its employee leading to higher turnover rate. Therefore, this study aimed at investigating the influence of psychological contract and employee engagement: A case study of National Social Security Fund Nairobi region. The specific objectives of the study were to examine the influence of talent management, remuneration, reward and performance related pay in employee engagement. The study was anchored by resource based view theory, goal setting theory and expectancy theory. The study adopted a descriptive research design. The unit of analysis was National Social Security Fund (NSSF) and the unit of observation was 10 Human Resource managers and 65 support staff from Human Resource Management (HRM) department. A census of 75 respondents was carried out. Questionnaires were used as data collection tools to all the respondents. Data was analyzed using both descriptive statistics and inferential statistics. The study revealed that established a positively significant relationship between talent management, empowerment, reward and performance related pay and employee engagement. The study concluded that using talent management will make it simpler for organizations to define which staff is best suited for the work that can lead to fewer problems and grievances in performance leadership. Employees tend to be more productive when they feel empowered in the workplace. Rewarding employees drives them to become emotionally committed to the organization. Performance-related pay motivates staff and more strongly aligns their efforts with the organization’s goals. The study recommended that the organization should formulate a talent management strategy that maps their objectives and priorities for the year and link them to the strategic plan and objectives of their organization. The organization should define the limits within which an employee can make his or her own choices on empowerment and bring together staff to help each other and encourage each other. The employees should be given a strategic reward system to the organization that addresses compensation, benefits, recognition and appreciation. The organizations should motivate employees by providing some tokens of appreciation and recognition, improved job security, fresh promotional possibilities, better performance appraisals, growth and use of fresh abilities and competencies.