EFFECT OF REWARD MANAGEMENT STRATEGIES ON EMPLOYEE PERFORMANCE IN IMPACT SOURCING COMPANIES IN KENYA

Abstract

The global platform today has become dynamic and challenging with ever increasing demands on the organizations, and thus organizations must embrace reward management strategies that enhance competitiveness, profitability and employee performance. Human capital can give an institution unrivalled competitive advantage in the face of stiff competition. The specific objectives were to find out the effect of financial rewards on employee’s performance, to find out whether developmental rewards affect employee performance, to establish the extent to which social rewards affect employee’s performance and to assess if intrinsic rewards affect employee’s performance. The scope of the study was Cloud Factory Kenya Limited. Descriptive research design was used for this study. The target population was 45 permanent staff. Primary data was collected using a self-administered google questionnaires. SPSS was utilized to process data. Data was analyzed using descriptive statistics, Pearson’s correlation, regression analysis and analysis of variance. Financial reward was found to have a strong positive relationship with employee performance at r=0.603 with a p=0.000 which was significant at 0.01 significance level. Developmental rewards also had a strong positive relationship with employee performance at Cloud Factory Kenya Limited at r=0.709 with a p=0.000 which was significant at 0.01 significance level. Social rewards also had a strong positive relationship with employee performance at Cloud Factory Kenya Limited at r=0.492 with a p=0.002 which was significant at 0.01 significance level. Intrinsic reward was found to have a strong positive relationship with employee performance at Cloud Factory Kenya Limited with r=0.511 with a p=0.001 which was significant at 0.01 significance level. The study recommended that there should a continuous improvement of financial rewards, developmental rewards, social and intrinsic rewards in order to maximize employee performance.