The effect of compensation on performance of healthcare staff in Kenya: a case of private hospitals in Nairobi

Abstract

The natural goal of any compensation formulae is to distribute income equitably based on capital, productivity and time in the organization. Managers are therefore searching for ways to increase productivity by linking compensation to performance. Employee performance if properly administered is seen as a necessary tool to obtain, maintain and retain a productive workforce. The aim of this study is to collect data that will be coded and analyzed to explain the effect of compensation on performance of health care staff in Kenya Private hospitals in Nairobi province have been chosen because they operate in a competitive environment which is conducive for the study. The objectives of the study include, finding out if compensation has led to the attainment of the hospitals goals, reduced its employees labour turnover, increased employee motivation and led to the need for life long career development among staff which may be taken as determinants of performance. Literature review has been done and documented in chapter two on major issues of the study including compensation and organizational goals, compensation and employee performance, compensation and employee motivation, compensation and employee labour turnover and lifelong career development. The study's independent variable is compensation. The dependent variable is performance which is determined through attainment of organizational goals, low employee labour turnover, employee motivation and the need for lifelong career development. The study will adopt a descriptive research design in which out of a proportion of 60 a sample size of 35 will be taken. The sampling technique that will be used will be stratified random sampling. Data will be collected using questionnaire method and analyzed using descriptive statistical techniques which will include tables, percentages frequencies and proportions. The research expects at the end of the study to establish that compensation leads to attainment of organizational goals, employee motivation and reduces employee labour turnover among others.