Mediating Effect of Job Satisfaction in the Relationship between Reward System and Employees’ Work Performance of Commercial Banks in Kenya

Victor Ondolla Jesse and Charles Katua Kithandi
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Victor Ondolla Jesse: School of Business and Economics, Daystar University, Kenya
Charles Katua Kithandi: Daystar University, Kenya

East African Finance Journal, 2024, vol. 3, issue 2

Abstract: Employee work performance is the key driver to organizational success. An organization with a poor employee reward system is likely to be on a pathway of organizational failure. The purpose of this study is to examine the mediating effect of job satisfaction in the relationship between reward system and employees’ work performance. The target population was 11 banks listed in the Nairobi Securities Exchange. A random sampling method integrating qualitative and quantitative design methods was employed in this study. A random sample of 383 employees was selected from the 11 banks. The study used a Partial Least Squares structural equation modeling (PLS-SEM) to assess the magnitude and relationship and thus come up with a finding of the relationship of independent and dependent variables. Using bootstrapping to evaluate indirect effects, the results showed significant mediation: β = 0.711, t = 7.663, p

Keywords: Reward System; Job Satisfaction; Employee Work Performance (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:cwk:eafjke:2024-20

DOI: 10.59413/eafj/v3.i2.15

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