COMPENSATION SCHEME AND EMPLOYEE PERFORMANCE OF PUBLIC MEDICAL HEALTH CARE WORKERS IN VIHIGA COUNTY, KENYA

Globally organizations are made up with human resources who are regarded to be one of the most essential resources of todays firms and if well managed can give a firm competitive advantage over other firms in the same industry. Compensation scheme plays an important role since it is at the heart of the employment relationship, being vital to both employers and employees, and is seen as one of the most significant ways that is effective in increasing health workers performances in terms of quality of services, efficiency and attendance at their work which is why matters on compensation scheme should be addressed. The study examined the influence of compensation scheme on employee performance of public medical health care workers in Vihiga County. The study was guided by expectancy theory, equity theory and reinforcement theory. The study adopted a cross sectional survey. The target population comprised of 518 public medical health care providers and a sample size of 84 public health medical care officers. The study employed a stratified and simple random sampling technique to select the respondents. The study used primary data through the use of questionnaires as research instrument. The researcher quantified quantitative data by use of percentages, frequencies, means and standard deviations. Multiple linear regression analysis was also used to show relationships between variables. The study revealed a positive and significant influence on employee performance with (β=0.234; p˂0.05), basic salary had a positive and significant influence on employee performance with (β=0.346; p˂0.05) and allowances had positive and significant influence on employee performance with (β=0.257; p˂0.05).Bonuses has an influence on employee performance however the county hospital does not provide regularly salary supplements inform of bonus hence affecting their efficiency at work, basic salary raises are rare in the county thus it has affected their efficiency at work and that allowances pay based on the employees skill employee affects employees performance. The researcher recommends that allowances should be awarded in a way that is fair to all cadres of staff and job evaluation should be conducted in order to enhance harmonization of salary.The study further suggests that more research needs to be done on the same area but concentrate on other factors influencing employee performance of county governments and even the private sector such as banks and manufacturing companies for the purpose of comparing. It is expected that the findings of the study will provide valuable information to the County Government of Vihiga as a guideline on the most effective policies and practices of compensating employees that the county can utilize to enhance employee performance. This study will contribute knowledge to existing literature in compensation and employee work performance. It will also act as a motivator for further research to other researchers and academicians in refining and extending the present study especially in Kenya.