INFLUENCE OF SALARY ON EMPLOYEE PERFORMANCE IN SELECTED PUBLIC INSTITUTIONS IN RWANDA
Abstract
The purpose of this study was to examine the influence of salary on employee performance in public institutions in Rwanda. The study was anchored on human capital theory and supported by agency theory. The study adopted a descriptive research design to establish the problem that is under investigation. It was appropriate because it explored and described the relationship between variables in their natural setting without manipulating them. The target population of the study was 4 Public Institutions located in Kigali Rwanda. Purposive sampling technique was adopted to select the sample of the study. Structured questionnaires were instruments of data collection due to their effectiveness of capturing respondent information in a structured manner and the opportunity of respondents giving their views freely without interference from the researchers. Primary data was collected using questionnaires and interviews while secondary data was collected through review of relevant literature. The questionnaires were coded and edited for completeness and consistency and entered into Statistical Package for Social Sciences (SPSS version 21). Analysis involved descriptive statistics and inferential analysis. Descriptive analysis technique gave simple summaries about the sample data in quantitative descriptions and included, mean, standard deviation, frequencies and percentages. Inferential statistics were used to determine the relationships and significance between independent and dependent variable. Correlation and linear regression were used to analyze the data with F-test being applied to the test hypothesis at 5% level of significance. Content analysis was used for the qualitative data. The data was presented using tables, graphs and charts. The findings showed that the respondents agreed with the various statements on the influence of salaries on their performance. This is because all the mean values were above 3.5. The findings specifically showed that the respondents agreed that their performance is more Motivated by a Reasonable Salary that they earn from their current Employer (M=3.982, SD=1.37) and that they always get Encouraged to work due to the salary that comes on time (M=3.889, SD=1.381). Respondents also agreed that their salary increment motivates their dairy performance at their work place in their organization (M=3.777, SD=1.275); salary is the sole motivator that enables them to perform to their employers’ Expectations (M=3.738, SD=1.32); and that salary is not the only sole Motivator that influences Performance at their Work Place (M=3.698, SD=1.331).
The findings established that salary had significant influence on employee performance in in Public Institutions in Rwanda since the p-value obtained was less than the selected level of significance. The finding further showed that the influence of salary on employee performance in Public Institutions in Rwanda was positive. Based on the findings, the study concluded that there is a positive significant relationship between salary and employee performance in selected Public Institutions in Rwanda. Salary was found to have positive significant influence on employee performance. The study recommended Public Institutions in Rwanda to consider the salary they offer their employees because it will determine their level of performance which in return affects the performance of the organization. Also, since monetary rewards are seen as a right rather than a reward, their serving as motivating factors has diminished and therefore the companies should focus on combining it with other motivating factors like social recognition and feedback.
Keywords: Salary, Employee Performance, Public Institutions, Rwanda
CITATION: Rulisa, C., Namusonge, G., Iravo, M. A. (2023). Influence of salary on employee performance in selected public institutions in Rwanda. The Strategic Journal of Business & Change Management, 10 (1), 239 – 253.
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DOI: http://dx.doi.org/10.61426/sjbcm.v10i1.2535
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