The Relationship Between Total Compensation and Employee Performance in the Insurance Industry, Case of Mayfair Insurance Company Limited
Psychology and Behavioral Sciences
Volume 5, Issue 1, February 2016, Pages: 20-36
Received: Jan. 5, 2016; Accepted: Jan. 18, 2016; Published: Feb. 19, 2016
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Authors
Christopher Muthusi Nzyoka, MSC Graduate, School of Business, Kenyatta University, Nairobi, Kenya
Bulah Hannah Orwa, Department of Business Administration, School of Business, Kenyatta University, Nairobi, Kenya
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Abstract
Today’s organizations are operating in a dynamic and highly competitive environment which requires constant adjustment of competitive strategies to remain relevant. Total compensation is one of the ways an organization can built a competitive strategy for attracting, retaining suitable employees as well as maintaining peak performance. Mayfair Insurance Company Limited is an organization that offers both life and general insurance to both the individual and corporate clients. The management has set up compensation system in the organization in pursuit of increased performance and the general growth to ensure this is sustained. However, the relationship between the total compensation and employee performance at Mayfair Insurance Company Limited has not yet been established. This study was done to establish the relationship between total compensation and employee performance at Mayfair Insurance Company Limited. Specifically the study will try to establish the relationship of various components of compensation including basis pay, incentives, benefits, non-financial rewards including career development, flexi work schedules and recognition and appreciation. The study will adopt descriptive research design. A sample size of 100 employees of the company was selected from 334 total employees using stratified random method. Data was collected using questionnaires and descriptive statistics (frequency tables and percentages) has been used to present data. Data was analysed using Statistical Package for Social Sciences (SPSS) computer package. Conclusions have been based on findings that there is a positive significant relationship between Total compensation and employee performance at Mayfair Insurance Company Limited and recommendations with benefits, recognition and appreciation being key factors in compensation. This study found the need for comparative studies in other industries like manufacturing and use of varied factors to reach a conclusive finding for generalised findings.
Keywords
Compensation, Employee Performance, Descriptive, Insurance Industry, Relationship
To cite this article
Christopher Muthusi Nzyoka, Bulah Hannah Orwa, The Relationship Between Total Compensation and Employee Performance in the Insurance Industry, Case of Mayfair Insurance Company Limited, Psychology and Behavioral Sciences. Vol. 5, No. 1, 2016, pp. 20-36. doi: 10.11648/j.pbs.20160501.14
Copyright
Copyright © 2016 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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