Managers perception of the influence of rewards on employee retention at south Nyanza sugar company limited
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.