Thesis:

Influence of compensation and benefits on performance of employees in the county government of Nakuru, Kenya

In the present organizational environment, a well-structured compensation and benefits system is recognized as a key driver of employee performance and institutional growth. This study examined the influence of compensation packages and benefits on the productivity of employees in the County Government of Nakuru. The objectives were to determine the effects of incentives, remuneration harmonization, equity and fairness in compensation, and remuneration reviews on employee performance. A cross-sectional survey design was used, and data were collected from 350 respondents using questionnaires, interviews, document analysis, and observation. Stratified and random sampling techniques ensured representative selection across various departments. Data were analyzed using SPSS, with inferential statistics including correlation and regression analysis. The results revealed a strong positive correlation between the independent variables and employee performance, as indicated by an R value of 0.944 and an R² of 0.891, suggesting that 89.1% of the variation in employee performance is explained by the studied compensation factors. Each variable was statistically significant, with p-values less than 0.05: employee incentives (β = 0.287), remuneration harmonization (β = 0.221), equity and fairness in compensation (β = 0.266), and remuneration review (β = 0.319). These findings highlight the need for public sector management to prioritize equitable compensation practices, implement structured remuneration reviews, and develop inclusive, performance-driven incentive programs. The study recommends the development of comprehensive and participatory incentive schemes that align with employee expectations and motivations, ensuring relevance, fairness, and enhanced organizational outcomes