Effect of remuneration on employee.

Abstract

The study was about remuneration and performance of employees in organizations. The purpose of the study was to establish the relationship between the remuneration and employee performance. The objectives of the study were to establish the effect of salaries on employee performance, to determine the effect of wages on employee performance, and to assess the effect of bonuses/ incentives on employee performance. Analytical and correlation designs were used in the course of the study. Quantitative data was gathered in order to establish the relationship between the independent and dependent variables. The data was collected from a total population of 48 respondents including mangers, image editors, doctors, accountants and support staff. Data was presented in a tabular form with frequencies and percentages for singular classifications of responses. A statistical package for social sciences (SPSS) was used to establish the effect of remuneration on employee performance. Findings on establishing the effect of salaries and employee performance revealed a strong and positive effect of remuneration on employee performance. Similarly, findings on determining the effect of wages on employee performance revealed a strong and positive relationship. Study findings also revealed that employees’ benefit/ incentives greatly affect performance in organizations. The management should put up strategies to ensure that employees’ salaries, wages and other allowances are adequate and satisfactory so that employees can be able to provide individualized attention to their work, offer quality services and strictly follow the policies and regulations of KIC for improved performance to be achieved in organization. Finally the management should appreciate the significant relationship between the variables.