REWARD STRATEGY AND EMPLOYEE PERFORMANCE IN COMMERCIAL BANKS LISTED IN NAIROBI SECURITIES EXCHANGE, KENYA
Abstract
Employee performance is critical to organizations in this era of free market and intensive competition. In this, reward strategy is considered an important determinant of employee performance. This study examined the effect of reward strategy on employee performance in ten commercial banks listed in Nairobi Securities Exchange. The study adopted explanatory research design and used the stratified random sampling technique in the selection of 394 employees. Data was collected using closed-ended self-administered questionnaire and analyzed using descriptive and inferential statistics. The hypothesis was tested using a linear regression model. The results indicated that reward strategy had a significant direct effect on employee performance in commercial banks listed in the Nairobi Securities Exchange. The study concluded that an improvement in reward strategy significantly leads to an improvement in employee performance. The study recommended that commercial bank managers should utilize appropriate reward strategy which is externally competitive, internally fair and consistent with the current acceptable best practices. Managers should take action to ensure that reward strategy is result oriented and geared to reward high performance, this will encourage and motivate employees to exert extra effort in their work. The reward structure should as much as possible be all rounded encompassing intended objectives, policies and techniques to meet the needs of the employees and organization.
Key Words: Reward strategy, Objectives, Policies, Techniques, Employee performance
CITATION: Muriithi, M., Komen, J., & Maru, L. (2022). Reward strategy and employee performance in commercial banks listed in Nairobi Securities Exchange, Kenya. The Strategic Journal of Business & Change Management, 9 (4), 1422 – 1438.
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DOI: http://dx.doi.org/10.61426/sjbcm.v9i4.2450
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