Influence of Compensation Strategies on Employees Performance in the Public Health Sector in Nairobi City County, Kenya
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Date
2019
Authors
Mmbusa, Mary
Kiiru, David
Journal Title
Journal ISSN
Volume Title
Publisher
International Academic Journal of Human Resource and Business Administration
Abstract
Compensation plays an important role in
determining employees’ job satisfaction and
thus performance. The perception of being
paid what one is worth predicts job
satisfaction. Health Workers in Kenya have
always downed their tools lamenting about
their compensation which raises concern
about their job satisfaction. However it is
not clear the influence compensation has on
employees performance to cause the many
stand offs. This study therefore sought to
establish the effects of compensation on
employees’ performance in the Public
Health Sector in Nairobi City County
Kenya. The objectives of the study were to
determine the effects of both financial and
nonfinancial compensation on employees’
performance. The study employed a
descriptive research design. Stratified
random sampling was used to select a
sample size of 110 employees drawn from
the target population of 1100. Responses
were collected through administration of
questionnaire. The validity and reliability of
the questionnaire was enhanced through a
pilot study carried out in selected Hospitals
in Nairobi City County. To ensure the
validity of the instruments, both face and
content validity was used. Data collected
was categorized coded and then tabulated
using SPSS. The qualitative data was
analyzed using descriptive statistics, means
frequency tables and percentage. The study
established that competitive salaries,
incentives, indirect compensation and
rewards had a positive and significant
influence on employees’ performance. The
study concludes that a competitive salary
package can improve employee motivation,
reduce employee turnover and increase
productivity, incentive plans motivate
workers for higher efficiency and
productivity. It can improve the work-flow
and work methods, indirect compensation is
a non-monetary benefits offered and
provided to employees in lieu of the services
provided by them to the organization and
that that employees become more engaged
when their performance is properly
recognized by their employer. The study
recommends that paying a competitive
salary is crucial for companies wishing to
recruit and retain top talent, the organization
should review existing reward programs and
determining their effectiveness in meeting
the organization’s objectives, employees
should be provided with the adequate
allowances and facilities during their
overtime, if they happened to do so, such as
transport facilities, overtime pay, etc.
allowances to get their regular check-ups
and that the organization should align
employee reward strategies with business
strategy
Description
Keywords
Compensation strategies, Employees performance, Public health sector, Nairobi City County Kenya
Citation
Mmbusa, M. I. & Kiiru, D. (2019). Influence of compensation strategies on employees performance in the public health sector in Nairobi City County, Kenya. International Academic Journal of Human Resource and Business Administration, 3(5), 20-39