{"id":2817,"date":"2025-06-30T06:29:30","date_gmt":"2025-06-30T06:29:30","guid":{"rendered":"https:\/\/sobe.kibu.ac.ke\/?p=2817"},"modified":"2025-12-24T19:39:36","modified_gmt":"2025-12-24T19:39:36","slug":"the-impact-of-compensation-on-employee-performance-in-commercial-banks-in-kigali-city-rwanda","status":"publish","type":"post","link":"https:\/\/kibu.ac.ke\/sobe\/the-impact-of-compensation-on-employee-performance-in-commercial-banks-in-kigali-city-rwanda\/","title":{"rendered":"The Impact of Compensation on Employee Performance in Commercial Banks in Kigali City, Rwanda"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"2817\" class=\"elementor elementor-2817\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-e5f4ae0 elementor-section-full_width elementor-section-height-min-height elementor-section-items-stretch elementor-section-height-default\" data-id=\"e5f4ae0\" data-element_type=\"section\" id=\"ourgoal\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-70d7718\" data-id=\"70d7718\" data-element_type=\"column\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-31e8586b elementor-widget elementor-widget-theme-post-title elementor-page-title elementor-widget-heading\" data-id=\"31e8586b\" data-element_type=\"widget\" data-widget_type=\"theme-post-title.default\">\n\t\t\t\t\t<h1 class=\"elementor-heading-title elementor-size-default\">The Impact of Compensation on Employee Performance in Commercial Banks in Kigali City, Rwanda<\/h1>\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-64e3fafb elementor-section-height-min-height elementor-section-boxed elementor-section-height-default elementor-section-items-middle\" data-id=\"64e3fafb\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-no\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-5c5e25a5\" data-id=\"5c5e25a5\" data-element_type=\"column\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-48dc7082 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"48dc7082\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-33 elementor-inner-column elementor-element elementor-element-2695b4a4 elementor-invisible\" data-id=\"2695b4a4\" data-element_type=\"column\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;,&quot;animation&quot;:&quot;fadeIn&quot;,&quot;animation_mobile&quot;:&quot;none&quot;}\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-5ce63a28 elementor-widget__width-auto elementor-widget elementor-widget-heading\" data-id=\"5ce63a28\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">2024<\/h2>\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-33 elementor-inner-column elementor-element elementor-element-5e468760 elementor-invisible\" data-id=\"5e468760\" data-element_type=\"column\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;,&quot;animation&quot;:&quot;fadeIn&quot;,&quot;animation_mobile&quot;:&quot;none&quot;}\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-280e44cb elementor-widget elementor-widget-heading\" data-id=\"280e44cb\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">KIBU Authors<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6e59f93 elementor-invisible elementor-widget elementor-widget-text-editor\" data-id=\"6e59f93\" data-element_type=\"widget\" data-settings=\"{&quot;_animation&quot;:&quot;fadeIn&quot;}\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>Kadian Wanyonyi Wanyama<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-33 elementor-inner-column elementor-element elementor-element-c129819 elementor-invisible\" data-id=\"c129819\" data-element_type=\"column\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;,&quot;animation&quot;:&quot;fadeIn&quot;,&quot;animation_mobile&quot;:&quot;none&quot;}\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-3376fc72 elementor-tablet-align-left elementor-invisible elementor-widget elementor-widget-button\" data-id=\"3376fc72\" data-element_type=\"widget\" data-settings=\"{&quot;_animation&quot;:&quot;fadeInLeft&quot;}\" data-widget_type=\"button.default\">\n\t\t\t\t\t\t\t\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-sm elementor-animation-shrink\" href=\"https:\/\/www.irejournals.com\/paper-details\/1706111\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-button-text\">VIEW ON PUBLISHER SITE<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-56908d94 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"56908d94\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-inner-column elementor-element elementor-element-353060cd elementor-invisible\" data-id=\"353060cd\" data-element_type=\"column\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;,&quot;animation&quot;:&quot;fadeIn&quot;,&quot;animation_mobile&quot;:&quot;none&quot;}\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-2d73d000 elementor-widget elementor-widget-heading\" data-id=\"2d73d000\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Abstract<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-e097443 elementor-invisible elementor-widget elementor-widget-text-editor\" data-id=\"e097443\" data-element_type=\"widget\" data-settings=\"{&quot;_animation&quot;:&quot;fadeIn&quot;}\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>This study investigates the impact of compensation on employee performance in commercial banks in Kigali City, Rwanda. The banking sector plays a crucial role in Rwanda&#8217;s economy, but there are concerns about employee motivation and high turnover intentions. The study aims to examine the relationship between various compensation components (monetary incentives, health insurance benefits, transportation benefits, and professional development opportunities) and employee performance. The research employs a descriptive research design with both descriptive and explanatory components, using a quantitative approach. A sample of 180 employees from 10 commercial banks in Kigali City was selected using stratified random sampling. Data was collected through a structured questionnaire and analyzed using descriptive and inferential statistics. The findings reveal that monetary incentives and health insurance benefits have the strongest positive correlations with employee performance, while professional development opportunities are rated poorly and have the weakest impact. Overall compensation significantly influences employee performance, with the multiple regression model explaining 69.4% of the variance. The results align with Maslow&#8217;s Hierarchy of Needs and Herzberg&#8217;s Two-Factor Theory, emphasizing the importance of addressing both basic and growth needs. The study concludes that compensation plays a crucial role in driving employee performance in Rwandan commercial banks and recommends that banks implement balanced compensation strategies, regularly review and adjust packages, and improve professional development programs. Policy makers are advised to develop guidelines for minimum compensation standards, create incentives for employee development, and promote transparency in compensation practices. The findings contribute to the understanding of compensation&#8217;s impact on employee performance in the Rwandan banking sector and provide valuable insights for banks and policy makers to enhance motivation and retention strategies.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>2024 KIBU Authors Kadian Wanyonyi Wanyama VIEW ON PUBLISHER SITE Abstract This study investigates the impact of compensation on employee performance in commercial banks in Kigali City, Rwanda. The banking sector plays a crucial role in Rwanda&#8217;s economy, but there are concerns about employee motivation and high turnover intentions. The study aims to examine the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"elementor_header_footer","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[],"class_list":["post-2817","post","type-post","status-publish","format-standard","hentry","category-research-list"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The Impact of Compensation on Employee Performance in Commercial Banks in Kigali City, Rwanda - School of Business and Economics<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/kibu.ac.ke\/sobe\/the-impact-of-compensation-on-employee-performance-in-commercial-banks-in-kigali-city-rwanda\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Impact of Compensation on Employee Performance in Commercial Banks in Kigali City, Rwanda - School of Business and Economics\" \/>\n<meta property=\"og:description\" content=\"2024 KIBU Authors Kadian Wanyonyi Wanyama VIEW ON PUBLISHER SITE Abstract This study investigates the impact of compensation on employee performance in commercial banks in Kigali City, Rwanda. 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