Abstract:
Employees are a major asset of an organization and play an active role towards the organization’s success that cannot be underestimated. As a reward system, career progression is one of the policies and practices established by organization to improve career effectiveness of their employees as a sequence of related work experiences and activities during one lifetime. The study sought to determine the effect of financial reward on employee performance. Self-Efficacy Theory on career progression was used to inform the study. The study adopted a descriptive research design. Descriptive statistics was chosen since it utilizes data collection and analysis techniques that yield reports concerning the measures of central tendency, variation, and correlation. The combination of its characteristic summary and correlation statistics, along with its focus on specific types of research questions, methods, and outcomes necessitated the choice of this design. The study adopted a positivism philosophy. The target population was 22,856 employees working in the six selected Commercial Banks in Nairobi City County composed of both clericals and Management staff. Krejcie and Morgan sample size determination table was used to derive a sample of 377 respondents. Primary data was collected using structured questionnaires that had both close ended and open-ended questionnaires. Quantitative data were analyzed using SPSS. The study conducted various tests including normality test, multicollinearity, stationarity, heteroscedasticity and autocorrelation tests. Factor analysis was carried out among corresponding questions to allow formation of factors with the highest Eigen values. Test of hypothesis was done at 95% confidence interval. The study found out that there was a positive and significant relationship between career progression and employee performance (r=0.588, p=0.000), the alternate hypotheses was not rejected. Based on the findings, the study concluded that career progression has a positive and significant effect on employee performance. The study recommended for management should also recognize and reward good performance, to help motivate and enhance employee engagement. An employee that has performed would feel that his or her effort is appreciated and recognized career wise, as a result would remain committed and engaged.
