Non financial rewards, job satisfaction and employee commitment in public sugar companies in Nyanza Region, Kenya

Abstract

Rewards are expected to increase employee commitment at work place. However, research indicates that commitment level of employees at sugar companies in Kenya is still wanting. This study therefore, sought to find out the effect of Job Satisfaction on Non-financial rewards and Employee Commitment in Public Sugar Companies in Nyanza region, Kenya. The specific objectives were to assess the effect of recognition; promotion; sense of personal achievement and growth on employee commitment. Further, another objective was on the moderating effect of job satisfaction on the relationship between recognition, promotion, sense of personal achievement and growth on employee commitment. The study was guided by the Herzberg Two factor theory and models of commitment. Positivism research philosophy and explanatory research design were adopted. Stratified and simple random sampling techniques were employed in collecting data from a target population of 2200 where Sony had 1121 and Muhoroni 1079. A sample size of 327 was drawn from a target population in public sugar companies in Nyanza region. Closed questionnaire was used in data collection and the content validity index was used to test the validity of the research instrument. The research instrument was also tested for reliability by computing cronbach alpha statistical test. Both descriptive (mean, standard deviation) and inferential statistics (correlation and hierarchical multiple regression models) at p<.05 were used to analyze data obtained and to test the hypotheses. The study found that; recognition (β=.37, p =.00), promotion (β=.30, p =.00) and growth (β=.22, p=.00) significantly affect employee commitment except sense of personal achievement (β=.95, p=.09) which was not significant. Additionally, job satisfaction moderated the link between; recognition and employee commitment (β = -.13, p=.01) and the link between promotion and employee commitment (β=-.09, p=.00) and the link between growth and employee commitment (β = -.17, p=.04). Lastly, sense of personal achievement even after being moderated did not have a link with employee commitment (β = -.060, p=.43) .The study concludes that, employee commitment was predicted by recognition, promotion and growth. It also concludes that job satisfaction strengthens recognition, promotion and growth. The study recommends that for an organization to ensure employee commitment, they should recognize and award great efforts made by employees in accomplishing tasks assigned to them. Organizations should also have proper guidelines on promotion. Finally, organizations should provide employees growth through providing opportunities for employees’ development. Again, future research to investigate the effect of sense of personal achievement on employee commitment since it did not have a relationship with employee commitment.