Establish the Influence of Competitive Remuneration on Organizational Efficiency at Sugar Companies in Western Circuit, Kenya

Authors : Kennedy Odhiambo Odwaro; Dr. Frankline Odayo

Volume/Issue : Volume 8 - 2023, Issue 9 - September

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Globally, employee retention has taken a center stage in various organizations which value skilled labor, knowledgeable and experienced staffs so as to remain efficient. These organizations prioritize talent retention strategies to enhance their efficiency in production.The employees attribute turnover to low staff morale, job dissatisfaction and lack of promotion, poor remuneration and poor working conditions. The general objective for the study was to determine the influence of competitive remuneration, on organizational efficiency at Sugar Companies in Western Kenya. The present study is anchored on Social Exchange Theory, Expectancy Theory and Efficiency Theory. The researcher has adopted a correlational research methodology to provide empirical data that helps addressing existing knowledge gap. Target population for the research consisted of 728 employees drawn from the three sugar companies. Stratified random technique was employed to arrive at 364 respondents from the population. Primary data was collected with the aid of structured questionnaire. The reliability instrument was determined by Cronbach Alpha method whereby results from Cronbach Alpha above 0.7 were deduced as acceptable degree thus confirming the internal validity while validity was ascertained through expert review. The primary data collected was analyzed using regression analysis.This means that competitive remuneration has a significant effect on organizational efficiency. Further examination of the model coefficient results shows that competitive remuneration has a positive and significant effect on organizational efficiency (β=.540, p<.05). Therefore improvement in employee remuneration improves organizational efficiency by a magnitude of 0.540 units based on the scales used. It was concluded that competitive remuneration has a significant influence on organizational efficiency. It was recommended that the sugar industry should improve employees’ remuneration. The study may enable the management of the companies to appreciate the significant roles played by employees to improve a company’s efficiency thus creating the need to retain and reward them. Human capital department will use the findings of this study to influence their decision making concerning employees. The study may contribute to academia and research field by acting as literature for other researchers who may advance their research in the same field in continental Africa. The study findings will also provide the employees of the sugar companies with an insight of the need to improve on their efficiency and full production capacity in their duty.

Keywords : Competitive, Remuneration, Organizational Efficiency.


Paper Submission Last Date
31 - December - 2023

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