Influence of Reward Management Practices on Employee Performance in Technical Training Institutions in Meru County, Kenya

Abstract

Employee performance is pivotal for organizational success, driving strategic objectives, competitiveness, and productivity. Effective performance is influenced by individual characteristics, organizational policies, leadership, and workplace conditions, with reward management practices standing out as crucial. This study sought to investigate the influence of reward management practices and employee performance in technical training institutions in Meru County, Kenya. The study objectives were to establish the influence of financial rewards, recognition-based rewards, career development opportunities and workplace support have on employee performance. The research was underpinned on equity theory, Herzberg's two-factor theory, expectancy theory, and social exchange theory. The research employed a descriptive design. A simple random selection method was employed, targeting a population of 890 employees, from which a sample of 276 was selected. Data was collected by a self-administered questionnaire. A pilot test was performed to evaluate the reliability and validity of the research instrument. The data analysis utilized descriptive statistics, correlation, and multiple regression analysis. Qualitative data were examined by content analysis. The results indicated that all assessed reward management practices positively and significantly impacted employee performance. Among the management practices, workplace support exerted the most significant impact, succeeded by career development opportunities, recognition-based rewards, and financial rewards. The research determined that reward management approaches substantially enhance employee performance in technical training institution. The results underscore the necessity for institutions to establish equitable and transparent financial compensation systems, introduce significant recognition-based rewards, offer organized career advancement possibilities, and cultivate a friendly workplace atmosphere. These strategies augment employee motivation, engagement, and productivity, hence facilitating the institutions' operational success. The report offers guidance for policymakers and institutional leaders on the design and implementation of successful compensation systems to improve employee performance. It advocates for the continual assessment and modification of reward management strategies to align with employee requirements and company objectives. Future research ought to investigate the enduring impacts of incentive systems on employee retention and organizational success, alongside the effects of cultural and demographic variables on reward choices.