Influence of Employee Benefits Strategy on Employee’s Performance in Public Hospitals in Nairobi County

Abstract

In a globalized economy and in an intensely competitive business environment, organizations should strive to put in place the most attractive and effective strategies to cope with the evolving trends. The purpose of employee benefits strategy in any organization is to attract, retain and enhance employee performance, which determines the overall organizational performance. This research intended to determine the influence of employee benefit strategy on employee performance in public Hospitals in Nairobi County. The study adopted equity theory. The study applied Cross Sectional research design. A target population of 1601 was drawn from three public hospitals in Nairobi County, and a sample size of 310 was determined using Fishers formula. Stratified simple random sampling was used to select the participants. Structured questionnaire was used to collect the data. A preliminary study was carried out to ascertain the consistency of the instrument. The reliability test revealed Cronbach’s Alpha was more than 0.7 indicating that the instrument was reliable. Data was carefully validated by ensuing content validity of the instrument. Filled questionnaires were collected from the research assistants and data was analysed using a statistics tool of statistical package for social scientists (SPSS). Correlation and regression analysis was applied in testing the connection between independent and dependent variable. The correlation summary revealed there was affirmative and strong significant connection between employee benefits strategy and employee performance. The study concluded that employee benefits strategy greatly influences employee performance in public hospitals in Nairobi County. The study recommended improvement of wellness programs, provision of transport to and from work and improvement of terms of mortgage scheme to attract more employees and to enhance motivation for better performance in public hospitals in Nairobi County.