EFFECT OF PERCEPTIONS OF FINANCIAL REWARDS ON EMPLOYEE COMMITMENT IN THE WATER SECTOR IN KENYA. A CASE STUDY OF KAKAMEGA COUNTY WATER AND SANITATION COMPANY

Abstract

The purpose of this study was to establish the effects of implementation of financial rewards on employee commitment at Kakamega County water and sanitation Company. Financial rewards are monetary incentives that an employee earns as a result of good performance. These rewards are aligned with organizational goals. Employee commitment is the strength of an individual’s identification with, and involvement in an organization. When an employee helps an organization in the achievement of its goals, a reward often follows. This study was carried out to determine if financial rewards have positive effect on employee commitment and performance. Solutions to these financial reward systems and related problems arrived at should help restore work places and have satisfied, motivated and committed work force thus ensuring high productivity. Structured questionnaire was used for data collection and generated data from questionnaire analyzed using Statistical Package for Social Science (SPSS) software version24 and the findings represented using descriptive statistics such as frequencies and percentage. The study found positive and significant relationship between the independent and dependent variables and concluded that Perception of rewarding allowances, Perception of merit pay, Perception of health insurance and perception of service related pay strategically enhance job satisfaction levels, enhancing employee commitment to a company. The study recommended fair financial rewarding of employees in the company, development of clear policies on Health insurance cover and service related pay as this enhances the employee commitment to the organization leading to higher productivity in the company. Key Words: Performance, Allowances and Bonuses, Health Insurance, Employee Commitment, Service related pay, Employee Commitment CITATION: Ongadi, A. L., & Juma, D. (2020). Effect of perceptions of financial rewards on employee commitment in the water sector in Kenya. A case study of Kakamega County Water and Sanitation Company . The Strategic Journal of Business & Change Management , 7(3), 1141 – 1156.

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