The Effect of Financial Rewards on Employee Commitment at Kinondoni Municipal Council, Dar es Salaam, Tanzania

Abstract

This study was carried out to find out the effects of reward system on employees commitment in public sector in Tanzania based on Kinondoni Municipal Council. The specific objective of the study were to determine effect of financial rewards on employees’ working efforts at Kinondoni Municipal Council. The research drew from expectancy theory and Herzberg’s Two Factor theory to guide its direction, while a conceptual framework was constructed to illustrate the connections between the variables under investigation. Employing an explanatory research design, the study opted for a combination of simple random and purposive sampling methods to recruit 118 participants from the target population of 2500 staff. Both questionnaire and interview were used to gather data from the respondents. Data that were gathered through questionnaire were analysed using descriptive and regression analysis while data that were collected through interview were analysed using content analysis. It was revealed that organisation overtime pay offered by staff adequately reflects the extra effort put into work while employees have a pension plan makes them feel more secure about their future, which allows employees to focus better on their work.  The study concludes that reward system, fringe benefits and recognition schemes have significant effect on employees’ working efforts at Kinondoni Municipal Council.  It was recommended that there is a need to ensure that employees receive competitive salaries which attract and retain top talent at Kinondoni Municipal Council. This policy implication can lead to increased job satisfaction, motivation, and commitment among employees.