FINANCIAL COMPENSATION ON EMPLOYEE PERFORMANCE OF ROTASSAIRWA LIMITED
Abstract
Over the last two decades compensation has been one of the products that motivate employees in return ensuring their performance towards achieving organization goals and visions. Compensation is either an output or a benefit that employee receives in form of pay, wages and rewards like monetary exchange for the employee’s to increases the performance. The purpose of the study was to examine the importance of financial compensation on employee performance of Rotassairwa Limited. In this study researcher adopted a descriptive research design, where quantitative approach was used. The total population of this study was 281 employees from Rotassairwa Limited. Using Slovin’s formula a sample size of 165 respondents was determined. The study used questionnaire to collect primary data. Stratified random sampling technique was used. Using Statistical Package of Social Science (SPSS) version 21 both descriptive and inferential statistics were used to analyze the data. The study findings revealed that 53.3% of the respondents strongly agreed that good salary influence employee performance, 57.0% of all respondents agreed that the employees performed well their job because they were being paid well, the findings revealed that 42.4% of respondents strongly agreed that Rotassairwa Limited paid the employees’ bonuses on time, 39.4% of respondents agreed that Rotassairwa Limited paid the employees’ bonuses on time. The study recommended that the policy makers to formulate policies than embrace reward systems that could be implemented by existing banks to give them a competitive advantage and for the new banks in setting structures that support employee performance. Rewarded employees are strongly enthusiastic about their work and function as a critical source of inspiration for others. Rewards systems are critical for and important elements in the success of organizations. It was in a company’s best interest, therefore, to concentrate on rewarding employees, both financially and non-financially. Based on the findings from this study; the study concluded that the results of correlation between financial compensation and employee performance was at 0.804 meaning financial compensation influence employee performance at the level of 80.4% (strong correlation) which prove a significant relationship between financial compensation and employee performance. Therefore, the researcher concluded a significant relationship between financial compensation and employee performance. The study recommended that more study on the effect of working environment on employee’s productivity and factors influencing employee turnover in manufacturing firms.
Keywords: Financial Compensation, Employee performance, Rotassairwa Limited
CITATION: Tumusime, C., & Mulyungi, P. (2021). Financial compensation on employee performance of Rotassairwa Limited. The Strategic Journal of Business & Change Management, 8 (1), 563 – 571.
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DOI: http://dx.doi.org/10.61426/sjbcm.v8i1.1931
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