Non-Financial Rewards on Employee Performance of Commercial Banks in Kenya
Kalonzya, Catherine Kathina
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For the last one-decade, commercial banks in Kenya have been registering increased profits. However, the increase in labor turnover and increased cost of staff replacement has led to Kenyan commercial banks aggressively competing for competent employees. Even though banks understand the logic of offering attractive financial rewards to their employees, they have not over the years put into consideration the use of non-financial rewards. This study therefore worked on investigating how performance-of employees-in commercial-banks-in Kenya is affected by non-financial-rewards. Career development, employee promotion, flexible work arrangements and employee recognition were the non-financial rewards specifically targeted for the study-and were used-to establish the-effect they-have on performance-of employees in commercial banks in Kenya. Commercial banks in Kenya were therefore used as the case study with three theories anchoring the study: Maslow’s-needs hierarchy theory, the-psychological contract-theory and-Vroom’s expectancy-theory. Clerical, secretarial, managerial and supervisory staff of commercial banks in Kenya totaling to 30,903 were used as the target population with descriptive-research1design-being used. The-study employed primary-data, which-was obtained- using semi-structured questionnaires. Content analysis was employed to analyze1data gotten from qualitative-data from-questions that were-open ended-while SPSS-and inferential-statistics and descriptive-statistics1were employed-to1analyze-the quantitative1data. Moreover, frequency distributions, percentages,-mean-as well as standard1deviation were used to form the descriptive statistics. Tables as well as graphs were then employed in presentation of the data. The correlation between the study variables was determined using bot multiple-regression analysis-and correlation-analysis. The study concluded that flexible work arrangement had a positive and significant influence on employee performance in commercial banks in Kenya. Findings also revealed that career development had a positive and significant influence-on employee-performance in commercial-banks in Kenya. The study further concludes that employee recognition had a positive and significant influence on employee performance in commercial banks in Kenya. The study findings established that job promotion had a positive and significant influence on employee-performance in commercial-banks in Kenya. This study therefore recommended that the top management should ensure the training policy is followed to the latter to ensure that employees receive the necessary skills. Further, the top management of the organization should always ensure allocation of adequate funds to fully cater for scholarships. In addition, the top management should ensure each and every employee is given a chance to give views on matters affecting the organization.