Effect Of Non-Monetary Rewards on Employee Performance Among Oil Marketing Firms in Kenya

Abstract

For optimal employee performance, an effective reward system needs to fit well with the organization's other design characteristics, including its business strategy. Many organizations have registered low employee morale, high turnover and high level of absenteeism because of poor working conditions. This study set to determine the effect of non-monetary rewards on employee performance among oil marketing firms in Kenya. To achieve this, the specific objectives include: determining the effect of flexible work hours; promotion; fringe benefits and recognition on employee performance among oil marketing firms in Kenya. This study is anchored on two theories: Expectancy theory and Hertzberg two factor need theory. The study adopted descriptive explanatory design that was cross sectional in nature targeting human resource managers in the 105 oil marketing firms in Kenya. A questionnaire with closed ended question was used to collect data which was analyzed using descriptive statistics: mean, frequencies, percentages and standard deviation. A regression analysis was also used to estimate the changes in employee performance explained by each variable. The study established that flexible work shifts reduced staff’s chances of being absent from work besides motivating them to consistently offer quality service to customers. The study further established that introduction of flexible work hours improved the quality of work life balance among staff in oil marketing firms. Oil marketing firms’ employees in Kenya had a clear career path. Promotions were done in a transparent manner based on merit. The firms had a number of fringe benefits for their staff. These included: medical insurance, house allowance, meals allowance, education, and transport. These firms offered praises to staff for outstanding performance and had walls of fame where outstanding performance among staff was posted for all to see. This study recommends improvements to the existing flexible working hours' program by complementing the flexible working schedule so that employees get the full benefit and are able to improve their work life balance. Oil marketing firms must maintain transparency and openness in promotion and performance appraisal to keep the faith of its staff and motivate them to put in more effort for delivery on their job targets. They also need to improve the scope and flexibility of their fringe benefits to staff.