Compensation, Employee Performance and Economic Well-Being in the Public Service

Abstract

The purpose of the study was to find out the relationship among compensation, employee performance and economic well-being among public servants in in Kakumiro District Local government. The study set out different objectives which included finding out whether compensation is related to employee performance, finding out whether employee performance and economic well-being are related and finding out whether compensation is significantly related to economic well-being. The study employed a cross sectional survey, correlational in nature on a population of All public servants (144) and a sample size of 103 respondents was selected using stratified random sampling. Three standardized questionnaires whose reliability coefficients were above 0.7. Data analysis will be done using the Statistical Package for Social Sciences using the different units of analysis. The data was be summarized into frequency-percentages tables for demographic data section and Pearson Product Moment Correlation Coefficient will be used to test the hypotheses. The study adopted the regression analysis as the study is basically two tailed study. Results of the study indicate that compensation and employee performance are not significantly related. There is a significant positive relationship between employee performance and economic well-being and there is a significant positive relationship between compensation and economic well-being. The regression analysis as well indicated a strong relationship between compensation and economic well-being. This study indicates the link between three variables of compensation, employee performance and economic well-being of the Public servants in Kakumiro District Local government. Findings show that compensation is the more efficient variable, which means that employee performance of public servants can be increased to a sufficient level by bringing a small increase in compensation. Recommendations to the relevant bodies and future researchers are stated as well. Keywords: Compensation, Employees' Performance, Economic Well-being and Public Servants.