Determinants of Compensation Systems Among Commercial Banks in Kenya

Abstract

Compensation and benefits are the most critical factors in attracting and retaining high quality employees. The employees' commitment and motivation are directly tied to this aspect of the employment relationship. Great employers provide generous monetary and non-monetary compensation and benefits to their workforce. Money is considered as the reward which is given to employees against work, to support their family, and payment for the work which is done. This study aim at establishing the determinant of compensation system among the commercial banks in Kenya. The study aims at evaluating the effects of firms’ ability to pay, employee productivity, compensation laws and regulation, reward strategy, trade unions as well as job requirements on the compensation system. The study will be done on all the commercial bank in Kenya specifically targeting the human resource personnel. Through a census study method, 43 respondents will be selected and questionnaires distributed. The data will analysed using descriptive statistics such as mean, percentage, frequency distribution table and standard deviation. The data will be presented using tables and graphs.