Effects of Employee Rewards Policy on Organization Performance in Public Primary Schools in Rachuonyo North Sub County

Abstract

Employee’s rewards policy in any organization controls the behavior and pattern of work hence a major driving force towards organizational development. This is because employee rewards dictates the level of motivation essential for the attainment of individual and organizational goals. This study explored these two important variables in an organization. Employee rewards policy in this research was the independent variable with sub variable such as benefits, compensation, incentives and promotion. Organization performance was the dependent variable being measured by indicators such as quality, efficiency, productivity and effectiveness. This study adopted Equity Theory on the basis of its emphasis on rewards and performance which were the key variables. The research adopted descriptive survey research design and was located in Public Primary Schools in Rachuonyo North Sub County. The key respondents included Headteachers, Deputy Headteachers, Senior Masters, Teachers and Education Officers with a total sample size of 403 participants. The study used structured questionniare. Test-retest technique was used to achieve Reliability with Cronbach alpha value of 0.776 being attained. A total of 349 questionnaires were returned for analysis of data. This was 87% return rate on the Questionnaires.The study found out that there is a positive correlation (r=.181) between employee benefits and organization performance. Employees compensation accounts for 5.5% of the organization performance (r=.055). Employee Incentives is positively correlated with organization performance by 38.7% while promotion accounts for 34.6% (r=.346). The study further found out that Employee compensation significantly and posistively (p=0.004) affect organization performance. Employee Promotion significantly (p=0.000) affect organization performance. The overal R Square value was 0.256 and Adjusted R is 0.247 demonstrating that employee rewards combined accounts for 26% of the organization performance. The study recommended that Teachers Service Commission should ensure that employee rewards are clearly spelt in the remuneration policy and are effectively implemented so as to enable performing employees do extremely well. Keywords: Employee Rewards, Policy, Organization Performance.