The Relationship between Financial Rewards and Employee Performance A Case of National Social Security Fund Uganda (Nssf)

ABSTRACT 

The purpose of the study was to examine the effect of financial rewards on employee performance at NSSF. The research questions were designed to guide the research work. A conceptual framework relating the financial rewards to employee performance was developed. The research adopted an analytical and descriptive research design which also used qualitative and quantitative methods. Out of the 56 staff and managers in the Benefit Department, Compliance and Record Department, Accounts and Audit Department, 40 staff members and nine managers responded to the study. Questionnaires were used to collect primary data on objectives of the study. The study revealed a significant positive relationship between, financial and non-financial rewards. However, the financial rewards were the most significant predictor of employee performance with a con-elation of 0.963. From the study, the researcher recommended that top management should ensures that performance appraisal is carried out regularly so that financial rewards can be linked to either individual or group performance. The management should also ensure timely payment of employees so as to reduce the unnecessary complaints and lastly, continuous improvements in working conditions will help change attitude of employees and hence productivity

TABLE OF CONTENT

Declaration .......................................................................................................................... i

Approval ............................................................................................................................. iii

Dedication .......................................................................................................................... iv

Aclazowledgement ................................................................................................................ v

List of Tables ...................................................................................................................... vi

List of Figures ................................................................................................................... vii

Table of Content ............................................................................................................... viii

Abstract .............................................................................................................................. ix

CHAPTER ONE: INTRODUCTION

Introduction ... .................................................................................................... . I

Background of the Study ........................................................................................ 1

Statement of the Problem ...................................................................................... 3

Purpose of the Study ............................................................................................ 3

Objectives of the Study ........................................................................................ .4

Research Questions ....................................................................................... .... 4

Significance of the Study ... .................................................................................. .4

Scope of the study ............................................................................................... 5

Conceptual Framework. ...................................................................................... 5

CHAPTER TWO: REVIEW OF RELATED LITERATURE

Introduction .......................................................................................................... 7

Financial Reward ............................................................................................... 7

Forms of Financial Rewards .......................................................................... ..... 11

Forms of Non- Financial Rewards ........................................................................ 14

Pe1formance of Employees ........................................................... ................... .... 16

CHAPTER THREE: METHODOLOGY

Introduction ..................................................................................................... 19

Research Design ................................................................................................ 19

Survey Population ............................................................................................. 19

Sampling Frame .......................................................................................... ..... 20

Sample Selection ............................................................................................... 20

Data Source ................................................................................................ .... 20

Data Collection Methods and Instruments ............................................................. 20

Data Quality Control ... ...................................................................................... 21

Data Processing and Analysis .............................................................................. 22

Research Procedure ...................................................................... ...................... .22

Ethical Considerations ....................................................................................... 22

Problems Encountered ....................................................................................... 23

CHAPTER FOUR: PRESENTATION AND ANALYSIS

Introduction ...................................................................................................... 24

NSSF Workers Who were Satisfied with Various Rewards ........................................ 24

Factors Influencing Motivation of Workers in National Social Security Fund .............. .25

Preference for Financial or Non-Financial Rewards by Respondents ... ..................... . 26

Reasons for Poor Staff Motivation in National Social Security Fund ......................... 27

The Relationship between Financial Rewards and Employee Peiformance ... ......... ..... 28

CHAPTER FIVE: DISCUSSION, RECOMMENDATION AND CONCLUSION

Introduction ... ................................................................................................... 3 0

Summary ......................................................................................................... 30

Discussion ... .................................................................................................... 31

Recommendation... . . . . . . . ...................................................................................... 3 6

Suggested areas for further research ... ................................................................. 36

Conclusion ...................................................................................................... 36

REFERENCE ....................................................................................... .38

Appendix: Research

Questimmaire ........................................................................................ .41