International Journal of Commerce and Management Research

Authors
Mark Okinyi Oyoo, Nicholas Kadaga Mwandihi, Douglas Musiega

Abstract
The objective of the study is to investigate the influence of reward systems on retention of employees in faith based health organizations in Kenya. The reward system aspects that influence employee retention include; intrinsic reward, extrinsic reward and career development. To achieve this primary data was collected through the use questionnaires. Simple random sampling technique was used to select a sample of 113 from a population of 160 respondents out of which 105 questionnaires were returned. Internal consistency was tested using Cronbach’s alpha and all the variables indicated reliable values. Data collected was then analyzed using both descriptive and inferential statistics. Correlation design was adopted to explain the causal relationship between reward systems and employee retention. The study found out that there was a strong and positive correlation between employee retention and intrinsic rewards, which was statistically significant. There was also a strong and positive correlation between the Employees’ retention and extrinsic rewards which was an indication that extrinsic rewards has positive influence on employee retention. Career development also positively influenced the retention of faith based health organization employees in Kenya. The respondents indicated that both intrinsic, extrinsic as well as career development are important components of employee retention. The study concluded that majority of the respondents indicated that both intrinsic, extrinsic as well as career development are important components of employee retention. This study recommends that the reward system exercised by the faith based health organizations in Kenya should be easily understood by the workers so that they can easily calculate personal cost benefits for various levels of effort they put. Reward packages must be valuable to the employees and should be based on realistic and reliable standards.