Effect Of Compensation Management Practices On Employee Performance In Wajir County, Kenya

Abstract

Compensation management are strategies used by different organizations to identify good performers and compensate them well as compared to poor performers. A lot of research in the area of compensation shows that there is a positive relationship between compensation management and employee performance. With the unveiling of the new constitution of Kenya in 2010, County governments were created. The county government took over among other things the staff that were initially managed by local government plus other elected leaders such as governors etc. Since its formation, there have been numerous strikes from the county government employees.one of the possible reasons could be poor compensation management leading to low morale of the county workers. Very few studies have looked into the relationship between compensation management and employee performance and especially in the county governments which are relatively new in Kenya.This study intended to find out the relationship between compensation management practices and employee performance in the county governments in Kenya, a case study of Wajir county. The specific objective of the study were to find out the relationship between direct compensation, indirect compensation, incentives and employee performance. This study was important in pointing out the challenges faced by county governments in implementation of compensation management system that will motivate employees and improve their performance. The study was important to the management of county governments, county government employees, ministry of devolution and the researchers. The findings of this study will becan be applied to other counties because the structures are similar. The study targets the entire political, technical and civic leadership of Wajir County who will be residing within the county at the time of study. The study will use descriptive researchdesign. Chi square –test was used to test the significance of the coefficient of correlation at 5% level of significance. The study used convenience sampling technique to select respondents from the categories of subcounties. The study collectedcollect databy use of primary sources. Questionnaires will used to elicit responses from the respondents. Datawas analysed using SPSS, and multiple regression analysis. The study concluded that there direct relationship between the employee performance and direct compensation and employee incentives .