An assessment of the criteria used in allocating different types of employee benefits at the Kenya Pipeline Company, Eldoret, Kenya

Abstract

AbstractThis paper is based on a study that assessed the types and criteria for awarding employee benefits at the Kenya Pipeline Company, Eldoret branch. Interpretive case study methodology and descriptive survey research design was used to obtain in-depth information from the respondents. The target population comprised 180 employees at the KPC, Eldoret branch. Stratified random sampling was used to draw a sample of 49 employees and purposive sampling to select 6 senior management staff. Data was collected using a questionnaire, document analysis and an interview schedules. Documents analyzed included the company's journals and the strategic plan. Descriptive and inferential statistics were used to analyze the data. The study established that the Company utilizes Collective Bargaining Agreement (CBA) and company policy in awarding equal employee benefits. The following equal employee benefits are awarded by KPC to its employees: schemes such as loans, pension and an assortment of insurance policies, knick- knacks, paid time off in form of leaves and holidays, counselling services, bonding sessions, payment for over time, protective gears and casual wear. Given the high global economic inflation, companies should consider harmonizing the benefits package so as to cushion itself against employee attrition and its employees against the harsh effects of inflation. From its findings and recommendations, the study helps managers increase employee motivation and morale which in turn will translate to high performance. The study also adds knowledge to the existing database which can be referred to by researchers and scholars.Keywords: criteria, types, employee benefits, Kenya pipeline company, KenyaINTRODUCTIONSuccessful companies have a history of good reward systems by means of employee benefits awarded to staff differentially based on individual performance. The concern of the study, on which this paper is based, was that some companies award equal employee benefits regardless of individual performance. This gap of disregarding individual employee effort in allocation of benefits is detrimental, especially to hardworking employees leading to low performance. The award of equal benefits fails to recognize workforce diversity. In most Kenyan state corporations and organizations, employee benefits are awarded equally for a specific job grade (GOK, 2007). This in return has contributed to high labour turnover; loss of talent, increased labour costs unmet targets and in most organizations such as KPC has not yet attained the top ten positions in national rankings of performance since the inception of performance contracting in Kenya. This paper critically examines the types of benefits and criteria of allocation employee benefits to ensure better organizational performance.Human Motivation Theories and Employee BenefitsAbraham Maslow is renowned for proposing the Hierarchy of Needs Theory in 1943. This theory is a classical depiction of human motivation. The theory is based on the assumption that there is a hierarchy of five needs within each individual. These five needs are: physiological; Safety; Social; Esteem needs, and Self-actualization needs. According to Maslow (1943), individuals are motivated by unsatisfied needs. As each of these needs is significantly satisfied, it drives and forces the next need to emerge. Maslow groups the five needs into two categories, namely Higher-order needs and Lower-order needs. The physiological and the safety needs constituted the lower-order needs. The Lower-order needs are mainly satisfied externally. The social, esteem, and self-actualization needs constituted the Higher-order needs. The Higher-order needs are generally satisfied internally. Thus, we can conclude that during boom period, the employees lower-order needs are significantly met.In 1959, Frederick Herzberg, a behavioural scientist, proposed a two-factor (motivator-hygiene) theory. According to Herzberg, there are some job factors that result in satisfaction while there are other job factors that prevent dissatisfaction. …

Cite this work

No public copy is stored for this record, so only the metadata is cited.

Stored only when both papers are in the corpus — 4 citations exist upstream.

Papers that cite the same references — the relational fallback while embeddings are still backfilling.