Factors Influencing reward at safaricom limited

Abstract

Mobile phone firms in Kenya are grappling with retaining their employees. Studies show that employees who are more motivated and committed to their organization are less likely to quit. Rewards management strategies serve to create a motivated and committed workforce. Using the correct types of rewards can thus provide a necessary competitive advantage. However, an organizations reward system is affected by several factors and it is incumbent upon every organization to identify these factors that affects its reward system. The objective of the study was to establish factors influencing reward system at Safaricom (K) Ltd. The research design adopted was a case study. The study used primary data which were collected through the use of an interview guide and the data analyzed using content analysis. The study findings show that several factors affect the organizations reward system, namely, job design, affective commitment, motivation level, organizational culture, performance management, government and level of competition in the industry. Employees that are graded highly in the organization were found to be rewarded better than those in the lower scale. Empowerment of employees through giving a greater say in decisions that affect them came out as a source of employee commitment. Performance related compensation in the organization is in form of recognition, salary increments and bonuses. Employees are more motivated to perform when there is a reward linked to performance and there is likelihood to have high performers in the firm resulting from the motivation.