INFLUENCE OF NON-MONETARY INCENTIVES ON PERFORMANCE OF EMPLOYEES IN MACHAKOS COUNTY GOVERNMENT, KENYA

Abstract

The purpose of this study was to investigate the influence of non-monetary incentives on performance of employees in Machakos County Government. The specific objectives of the study were to determine the influence of training on performance of employees; to establish the influence of employee recognition on their performance; to examine the influence of flexible work schedules on performance of employees and to establish the influence of autonomy on performance of employees. This study was guided by Expectancy theory developed by Victor H. Vroom concerned with an individual's belief that they will achieve the desired results, Reinforcement theory proposed by BF Skinner and his associates which states that behavior is influenced by its consequences, Equity theory developed by John Stacey Adams and states that employees weigh their input into a job against the output, Spill over theory developed by Piotrkowski addresses the issue of work-life balance. A descriptive research design was used because it allowed a systematic and well-ordered description which was reliable, accurate as well as valid. The target population was 823 respondents which constituted of top level, middle and lower level employees of Machakos County government. To achieve the objectives a sample of 247 respondents was drawn from the population. Questionnaire was used as the main instrument for data collection. The questionnaire was tested for validity and reliability before collecting data. The data obtained from the respondents was analyzed using descriptive statistics that is percentages, frequencies, standard deviations and means. Inferential statistics comprising of correlation analysis, simple and multiple regression and stata version 17 were used to address the study’s objectives. The study found that higher percentage of employees require independence to perform better in line with organizational expectations. The study also discovered that employees view recognition as part of their feelings of value and appreciation and that this boosts employee morale, which increases organizational efficiency. The study found that when workers undergo training, it enhances their understanding and skills required by the occupation and builds their confidence in their abilities. Finally, the study concluded that adopting flexible work schedules affects employee performance negatively and that Machakos County Government should not promote it as a non-monetary incentive. Based on the findings of the study, the following recommendations were made: employers to capitalize on non monetary benefits by acknowledging workers, giving them room for autonomy, flexible work schedules and offering training. It advised county governments to educate their staff on the value of non monetary incentives. Potential investors in the county to help develop strategies for improved employee performance by taking into account the fact that workers may prefer to work for themselves and their advancement opportunities, recognition, work autonomy, as well as more flexible working hours, rather than for their organizations alone. In addition, on independence and recognition of employees, the study recommends that Kenya's government institute labor rules prioritizing workers' recognition and autonomy inside their firms over monetary compensation.