Employment benefits and employee performance: case study InterAid Uganda

Abstract

Employment benefits are very important tools to enhance the performance of employees. They are therefore very important for the organization too. The purpose of this study is to establish the effect of employment benefits on employee performance using InterAid Uganda as a Case Study. The study was guided by three objectives; to find out the effect of training on employee performance, to examine the effect of allowances on employee performance, and to establish the effect of promotion on employee performance. The study adopted cross sectional study design using both qualitative and quantitative approaches. A questionnaire was designed to collect the data on training, allowances, promotion and employee performance. The data was collected from a sample size of 48 employees selected randomly from the 57 employees of InterAid Uganda based in Kampala. Collected data were analyzed using percentages, mean, standard deviation, correlations and regression conducted in SPSS analytical package. It was found that employment benefits have a positive effect on employee performance. It was proved from correlation analysis that all the independent variables have weak or moderate positive relationship with the dependent variable. The Multi Linear Regression Model shows that training has insignificant positive effect on employee performance with a Pearson’ correlation coefficient value of (0.179) and p-value (0.224), allowances have an insignificant positive effect on employee performance with a correlation coefficient value of (0.158) and p-value of (0.284), and promotions have a significant positive effect on employee performance with correlation coefficient value of (0.331) and p-value of (0.022). The regression equation is Employee Performance = 2.923 + 0.065(Training) + 0.099 (Allowances) + 0.222 (Promotion) +e. This means that a unit change in training causes a change of 6.5% in the employee performance, a unit change in allowances causes a change in employee performance of 9.9%, and a unit change in promotion causes a change of 22.2% in the employee performance. However, besides training, allowances and promotion, there are other factors that potentially influence performance. In conclusion; training, allowances and promotion have moderate effects on employee performance. The study recommends that organizations should provide need-based training to their employees, organizations should redesign their allowance packages to suit the needs of different employees, and they should provide avenues for promotion for competent long serving employees.