Abstract:
The main objective of this study was to assess the effect of reward systems on employee job
satisfaction in the Nyeri County Referral Hospital. This is in view of the fact that, although
Nyeri county public health sector has been performing quite well in terms of doctor to
population ratio (1: 5,000) as compared to the national average (1 :25,000), it still not up to the
level set by World Health Organization(! :423) and as envisaged by the Kenyan constitution.
The specific objectives were to find out the effect of extrinsic rewards on employee
satisfaction, to establish the effect of intrinsic rewards on employee satisfaction and to
investigate the effect of social rewards on employee satisfaction in the Nyeri County Referral
Hospital. Data was collected through stratified random sampling and in terms of duration
cross-sectional approach was adopted. The research was conducted through self administered
questionnaires to doctors, clinical officers and nurses in Nyeri County Referral Hospital. The
target population for this study was the 284 medical staffs, consisting of had 22 doctors 28
clinical officers and 235 nurses, from Nyeri Referral Hospital. The sample size consisted of 85
respondents. The study achieved a response rate of 84.7%. Frequencies and percentages were
generated from the data and presented using frequency distribution tables while bivariate and
multiple linear regression analysis was done to establish the nature and significance
relationship between independent variables and the dependent variable in the study. The
results indicated that extrinsic rewards had a positive but insignificant effect on employee
satisfaction when considered singly but had a positive and significant effect when combined
with other factors. Both intrinsic rewards and social rewards had a positive and significant
effect on employee satisfaction when considered singly and in combination with other factors.
in the Nyeri County Referral Hospital. The study recommends that Nyeri County Referral
Hospital should strengthen all the rewards as there was a weak relationship between them and
employee satisfaction. Cooperation between the national government and county government
should be strengthened so that employee files can be availed to the county to fast track the
promotion process. This study recommends that future researchers should consider the
following areas. First, it is suggested that a study focusing on the effect of various types of
reward systems on employee satisfaction in private hospitals should be put into consideration.
Secondly, this study considered three variables, namely intrinsic, extrinsic and social rewards.
Future researchers should also focus on combinations of other factors, other than rewards, that
affect employee satisfaction in Nyeri County Referral Hospital. Future work should also
consider researching on sources of satisfaction for employees of Nyeri County Referral
Hospital. Finally, future researcher should also find out the challenges that Nyeri County
Referral Hospital faces in implementing extrinsic, intrinsic and social rewards.