Effects of Remuneration System on Organizational Performance of Teachers Service Commission, Kenya

Hannah Wanjiru Muchai, Elizabeth Nambuswa Makokha, Gregory Namusonge


Remuneration systems provided in an organization should aim at motivating, attracting and retaining employees in an organization to enhance better performance, However in many public organizations in Kenya, remuneration systems continues to be a major problem resulting to divined organizational performance. The general objective of the study was to establish the effects of remuneration system on organizational performance in public organizations with reference to Teachers Service Commission. The study specifically  the effects of employees’ turnover on organizational performance in Teachers Service Commission. The study applied a descriptive research design and the target population was 1,500 employees of Teachers Service Commission (TSC) headquarters in Nairobi with a sample size of 316 respondents. The main data collection instruments were questionnaires and a pilot study was carried out to test the reliability and validity of the questionnaires. Descriptive statistics data analysis method was applied to analyze data aided by Statistical Package for Social Sciences (SPSS) to compute responses frequencies, percentage mean and standard deviation results. Finally Multiple Linear Regression model was employed to establish the significance of the independent variables on the dependent variable. The findings were presented using tables. The study findings thus showed that employees employee’s turnover   affected the organizational performance. The study found out that employees that are highly contented with their work; employees that are highly motivated; regular review of reward systems; employees commitment and conducive working conditions affected organizational performance in the organization. The study drew conclusions that the effects of remuneration system that affected organizational performance in public organizations included; employee’s turnover. The study recommended that the organization management should review and increase the employee’s remuneration and rewards and in addition provide more benefits to the employees. Good working environment should also be provided and proper working conditions should be provided to all employees. The organization management should offer competitive remuneration packages in order to encourage employees not to leave the organization on basis of remuneration, employees work life balance should be well enhanced, exit interviews should be frequently conducted in the organizations to determine the causes of turnover and to provide direction on the nature of employee retention strategies that should be employed. The management should improve on employee job tasks allocation in order to ensure that employees accomplish set targets on time and work assignments should be effectively allocated.

Keywords: Employee Turnover, Remuneration, Performance

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