Remuneration Strategies and Employee Performance in Commercial Banks in Uganda: A Case Study of Centenary Bank Entebbe Road Branch.

Abstract

NAMBALIRWA MOUREEN (2013-M102-2017) Remuneration Strategies and Employee Performance in Commercial Banks in Uganda: A Case Study of Centenary Bank Entebbe Road Branch. The purpose of this study was to establish the relationship between remuneration strategies and employee performance in financial institutions in Uganda. Remuneration strategies included in the study comprised of financial rewards, non-financial rewards, and psychological rewards while employee performance was assessed through hours worked, outputs of employees, and time management. The specific objectives of the study were to; establish the relationship between financial reward and employee performance, the relationship between non-financial reward and employee performance, and the relationship between psychological rewards and employee performance. A sample of 93 respondents participated in the study and they were selected using stratified random sampling and purposive sampling techniques. The study was both qualitative and quantitative in nature, and data was collected using questionnaires, interviews and backed by documentary sources. The data were analysed using the Statistical Package for the Social Sciences (SPSS). The main findings revealed that there was a positive and significant relationship between financial reward and employee performance; it also established a positive significant relationship between non-financial reward and employee performance. The study further established a positive and significant relationship between psychological reward and employee performance. The study concluded that managers of financial institutions should consider the financial rewards and the components evaluated in this study critically in their staff remuneration strategy since they related positively with the performance of employees. It also concluded that non-financial as well as psychological rewards with their components assessed in this study played a critical contribution in achieving employee performance. The study, thus, recommends that managers of financial institutions should develop an effective package of reward strategy for their employees in the institutions which should encompass all the reward components assessed in this study. Key Words: Remuneration Strategies, Employee Performance, Commercial banks, Centenary Bank Entebbe Road Branch