Effect of Staff Welfare Programs on Employee Satisfaction among Commercial Banks in Kenya

Abstract

The purpose of this study was to access the extent to which welfare programs effects employees’ satisfaction among commercial Banks in Kenya. The research questions were: How does worker’s compensation influence employees’ satisfaction among commercial banks in Kenya? What are the effect of training and development on employee satisfaction among commercial banks in Kenya? How does safety and health in the workplace affect employees’ satisfaction among commercial banks in Kenya? How does pension schemes influence employees’ satisfaction among commercial banks in Kenya? This study adopted descriptive research survey design. The population of the study was 957 employees, with target sample size of 274 of managers of Commercial banks in Kenya. Structured questionnaires were used to collected data based on the research questions. Descriptive statistics was used to analyze data for frequencies, percentages distribution tables, and the mean. Inferential statistics analysis was done using correlation, linear regression and multiple regression. The findings on the effect of worker compensation on employee satisfaction revealed that the relationship between worker compensation and employee satisfaction was statistically significant. Annual leave, family leave, child care program, sick leave, relocation benefits, transport benefits, education fees benefits, and financial assistance were all significant components of worker compensation that enhanced the relationship with employee satisfaction. The findings on the effects of training and development indicated that there is a significant positive relationship between training and development and employee satisfaction. Training methods, training quality, type of training, promotions, career development, coaching and mentoring and talent development were all significant components of training and development that enhanced employee performance. The study findings of safety and health revealed a significant relationship with employee satisfaction. Hazards management, accidents investigation, OHS management, and awareness creation all contributed significantly to employee satisfaction. Finally, pensions and retirement schemes had a weak, positive and significant relationship with employee. Pension funds, retirement benefits, fringe benefits, profits sharing, all contributed significantly to employee satisfaction. In conclusion, the study findings indicates that worker compensation programs, training and development programs, safety in the workplace and pension and retirement schemes were all statistically significant and contributed positively to employee satisfaction. Since compensation programs had the highest relationship value, the study concludes that compensation programs enhanced customer satisfaction more, than all the other variables in the study. Recommendation for improvement at on worker compensation includes enhancing banks’ ability to ensure that every employee goes for annual leave, and is entitled to full pay during the leave. Recommendation for training and development includes enhancing on-job training, team work, and job rotation to enhance employee satisfaction. On safety and health, the study recommends that commercial banks in Kenya should develop health and safety measures that will guarantee employee satisfaction. On pension schemes, the study recommends that commercial banks in Kenya should put compensation schemes for their employees as a priority.