Effect of Incentives on Organizational Commitment in Insurance Companies in Uasin Gishu County, Kenya
DOI:
https://doi.org/10.70619/vol4iss2pp23-35Keywords:
Incentives, organizational commitment, regular promotionsAbstract
Purpose: To assess the effect of incentives on organizational commitment in insurance companies in Uasin Gishu County, Kenya.
Methodology: Quantitative techniques were used for both data collection and analysis. The target population was 754 respondents who were drawn from the insurance companies in Uasin Gishu County. the sample size was 260 determined using Krejcie and Morgan table 1970 Appendix V. After the sample size of 260 respondents. Simple random sampling was used to select the respondents to participate in the research study, but after it had been determined how many from each of the insurance companies that participated. Data was analyzed using descriptive (mean, standard deviation, frequencies, skewness, and kurtosis) and Inferential Statistical Techniques. Under Inferential Statistics, regression analysis was used to determine the effect of a set of independent variables (high involvement work systems) on a dependent variable (organizational commitment), Co-efficient of Correlation using the Statistical Package for Social Sciences (SPSS) version 25.0 package.
Results: There is a significant effect of incentives on Organizational Commitment in insurance companies in Uasin Gishu County, Kenya. This implies that the organizational commitment of employees is pegged on the use of incentives by insurance companies amongst their employees.
Conclusion and Recommendations: Based on a positive social exchange pay raises, commissions regular promotions build engagement among employees to encourage teamwork, boost morale and motivation for organizational commitment. The insurance company should effectively Communicate the incentive program that they have in place to the employees and execute it as communicated. The incentive program should be engaging, user-friendly where employees can participate in development and reap the benefits for sustained organizational commitment. The incentive programs should be as diverse as possible to help in attracting and retaining talent.
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