| dc.description.abstract | On average a company losses approximately Kes 10 million with every 10(ten) managerial and
professional employees who leave the organization. The combined direct and indirect costs
associated with one employee ranges from a minimum of one year’s pay and benefits to a
maximum of two years pay and benefits. Thus, there is a significant economic impact when an
organization losses any of its critical employees especially given the knowledge that is lost with
an employee’s departure. The purpose of this study was to determine the managers’ perception
of the influence of rewards on employee retention at South Nyanza Sugar Company Limited
Kenya. Descriptive research was used. For this study the target population was ten (10) heads of
department who are employees of the organization which is a state corporation. To achieve the
research objectives, both primary and secondary data was used. Primary data was collected
through a questionnaire. Secondary data was obtained through documents review specifically
exit interview and workplace satisfaction survey. Quantitative data was analyzed using
descriptive statistics. The study found that there is employee reward policy at Sony Sugar
Company Limited and that employees do not leave the organization because of dissatisfaction
with employee reward. It was also clear that pension scheme gives a feeling of power by having
some control over planning for retirement, reduces worry about one’s family security and
determines employees remaining in the organization. The study also established that sabbatical
leave reduces monotony on jobs, reduces stress on jobs, enhances knowledge and leads to
employee retention. It was revealed that health insurance help to reduce the cost of
hospitalization, protects employee against any uncertainty, improve health outcome and helps to
retain employees in the organization and increase concentration at work hence improved
productivity. The study found that flexible work plan helps to motivate and retain employees,
improves morale, leads to increased productivity and helps to improve attendance hence high
performance. The study found that educational programs enable employees to gain skills, leads
to enhanced productivity and retains employee in the organization. The study further established
that inadequate rewards are the main reasons employees leave the organization. Other reasons
are inequity in reward administration and non-involvement in reward decision. The study
recommends that in order to enhance employee retention, Sony Sugar should offer increased
medical package, provision of housing facilities at subsidized rent rates, increase salary,
provision for growth and development opportunities for staff and a good reward scheme, staff
participation in decision making, incentives to motivate staff benefit policies that are competitive
and compare favorably with other organizations, transparency in matters relating with staff
rewards, establishment of loyalty club/team building and good working conditions. | en_US |
