The effect of employees’ health benefits on the performance of commercial state corporations in Kenya

Abstract

This study sought to assess the effect of employees’ health benefits on the performance of Commercial State Corporations in Kenya. Commercial state corporations are established by the government to offer efficient and effective citizen service delivery whilst surrendering back investment income at the end of each financial year. Despite this, most of them have performed dismally over the years, questioning their justification for continued existence. A survey research design was used to conduct this study, targeting 612 managers of various cadres in the 68 commercial state corporations in Kenya. The Yamane sampling formula was used to arrive at a sample size of 242 managers in these corporations. Data collected through structured questionnaires was analysed using both inferential and descriptive statistics. Multiple regression models and Hierarchical regression were used to test hypotheses for moderation. The outcomes of the hierarchical regression model on all the variables revealed that employees' health benefits (β= 0.138, p= 0.000, p<0.05) had a significant positive relationship with the performance of commercial state corporations. These findings contribute novel insights into the influence of employee compensation on the performance of commercial state corporations. The study concluded that employee compensation affects the performance of commercial state corporations and that remuneration policy guidelines strengthen the positive linkage between employee compensation and performance outcomes. The study recommended that commercial state corporations should give higher priority to employee’s health benefits and Remuneration policy guidelines as they are crucial in enhancing their performance.