EMPLOYEE TURNOVER AND THE EFFECTS OF STAFF WELFARE
1. INTRODUCTION
In today’s competitive economy, attracting and retaining qualified individuals is dependent on the company’s competitive and remuneration package. Every day, unique and appealing remuneration packages entice employees (Theuri, 2017). Employees represent the human capital aspect in all firms and embody all human capacities, independent of intrinsic or learned attributes, whose value could be enhanced by appropriate development investments (Bernardin, 2010).
Thus, organizations must give more appealing salary and quality packages to increase employee engagement through the inclusion of staff welfare initiatives.
According to Stone (2012), welfare services are financial or other help provided by an organization to an employee or family.
Employee welfare is a broad word that encompasses the numerous services, perks, and facilities provided by employers to their employees. The welfare indicator could be monetary or non-monetary. Allowances, housing, transportation, medical insurance, pension schemes, family leave and canteens, sick days, child care programs, financial help, and educational services were among the different welfare services available.
Lack of adequate reward systems for compensating employees’ job efforts reduces staff morale, which has a negative influence on organizational productivity.
In practice, most developed countries, such as the United States, the United Kingdom, and Canada, have succeeded in building and maintaining organizational performance by the strategic implementation of diverse staff welfare strategies in over 65 percent of their public sector firms (Cadalian, 2013).
Similarly, in China, Korea, and Japan, more than half of their civil servants exhibit HRM characteristics, which considerably influences the delivery of quality public services and has a favorable impact on the country’s economic development.
While research on HRM in developing economies is scarce, efforts to generalize empirical findings from industrialized countries have been strongly discouraged (Collings, Demirbag, Mellahi, & Tatoglu, 2013).
In Kenya, the government’s initiatives are targeted at improving the show and the efficiency of the public service sector, which began with Public Sector Reforms in 2007.
The G.O.K (2012) economic review concluded that the employment sector in Kenya contributed less to GDP growth than it did to wealth creation. Poor labor productivity is a major contribution to the country’s economic growth and progress.
According to the Omollo research, forced labor reduces productivity despite an increase in employment numbers (2010). This is concerning in light of the low performance levels in the public sector.
2. THE PROBLEM OF RESEARCH
Human Resource Management aims to increase organizational productivity (Bernardin, 2010). It is a comprehensive human resource plan that plays an important role in ensuring that the organization meets its intended targets and goals.
Employee welfare policies, in particular, act to boost the productive character of the business while promoting the employees’ conditions (Gemba, 2017).
This is because employees are more likely to be motivated when their needs and desires are met, which increases production and labor efficiency across all industries.
While prior research provided evidence of the use of employee wellbeing plans and their impact on performance, reaching optimal performance in public service remains a difficulty. As a result, there is an urgent need to examine, review, and rebuild the human resource function so that there is clarity in its strategic goal and shaping in including staff welfare measures, requiring this study.
3. OBJECTIVES OF RESEARCH
The study’s goal was to investigate the impact of staff dispute resolution on employee performance at Kenya’s Public Service Commission. The particular goals were as follows:
i. Determine the impact of retirement benefits on organizational performance in Kenya’s Public Service Commission.
ii. To analyze the impact of allowances/benefits on organizational performance, the Kenyan Public Service Commission.
iii. To ascertain the impact of remuneration on organizational performance in Kenya’s Public Service Commission.
iv. To assess the impact of medical insurance on organizational performance, the Kenyan Public Service Commission.
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EMPLOYEE TURNOVER AND THE EFFECTS OF STAFF WELFARE
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