EFFECTS OF PERFORMANCE BASED COMPENSATION ON THE PERFORMANCE OF HEALTH CARE WORKERS IN PUBLIC HOSPITALS IN NORTH RIFT COUNTIES IN KENYA

Abstract

Purpose: Performance in most public hospitals in Africa is very poor and Kenyan public hospitals are not exceptional; there exist laxity in attending patients. There is need to improve performance in Kenyan Public hospitals. The main objective for this study was to determine the effects of performance-based compensation on performance of health care workers in public hospitals in Kenya.  The study was guided by Expectancy Theory.

Methodology: The study adopted Explanatory Research design. The study targeted 481 health care workers working in County Referral Hospitals in Kenya and a sample size of 218 health care workers was selected for the study. Questionnaires was used as a method of collecting data. Primary data collected was edited, coded into SPSS V.26 software. The collected data was analysed descriptive (frequencies, percentages and means) and inferential analysis such as linear regression model. Data presentation was done through tables.

Findings: From the findings the Performance-based compensation had negative significant effect on employee performance (β= -.152 and p value >0.05). The study concluded that performance-based compensation had significant relationship with employee performance in the public hospitals.

Unique contribution to theory, practice and policy: The study recommends that the Ministry of Health should come up with an elaborate plan to equip all hospitals. The management of Public healthcare sector should ensure that compensation is paid on time if they are committed to improving employee performance.