Effects of Employee Welfare Programmes on Organisational Performance Makueni County,Kenya
Muema, Everlyne Mueni
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Employees form the human capital factor in all organizations and symbolizes all human abilities irrespective of the inherent or learnt qualities, whose worth could be improved by suitable development investments. Organizations therefore need to ensure that they offer compensation and welfare packages that increase employee motivation. The motivation of employees increases when their needs are met and this leads to increased productivity and efficiency in service delivery. Achieving optimal performance in public service remain a challenge. There is limited literature of employee welfare programmes and organizational performance hence the reason for conducting the study. The objective of the study was to determine the effect of employee welfare programs on organizational performance in Makueni County Public Service. The specific objectives are: To evaluate the effect of retirement benefits on organization performance Makueni County Public Service; to determine the effect of medical cover on organizational performance in Makueni county public service; and to assess the effect of employee allowances on organization performance Makueni County Public Service. The study used the social exchange theory by George Homans as the anchor theory since it explains all the study variables both independent and dependent. The other theories that were used include the achievement motivation theory by David McClelland 1980 which explained employee performance. The expectancy theory by Victor Vroom 1960 explained the employee welfare component. Maslow’s hierarchy needs theory of motivation was also used. The study sample size was 376. The study used proportionate stratified random sampling. Data collection was done using a semi-structured questionnaire. The data collection used of google forms. A pilot study was conducted to determine the validity and reliability of the data collection tool. The data analysis was done by use of SPSS. Descriptive analysis was use to achieve the study objectives. Data was presented and visualized using charts and tables. The Pearson correlation analysis showed that the independent variables have a strong positive correlation with the dependent variable. The regression analysis showed that 45.3% of the organizational performance is explained by availability of retirement benefits, medical insurance and staff allowances. Availability of staff allowances explain 35.9% of the organizational performance, retirement benefits explain 45.6% of organizational performance and availability of medical cover explain 71.2% of the organizational performance. The study concludes that staff benefits have a positive significance correlation with organizational performance. The availability of these benefits boosts employees’ satisfaction and consequently influence their performance and that of the organization. The study recommends that county government of Makueni ensures that there is equitable availability of medical cover; train staff on retirement benefits; provide staff allowances equitably and in good time to allow staff to execute their duties effectively. The study recommends that the human resource directorate conducts sessions with employees to identify the gaps in the staff welfare packages and action on the recommendations.