Effect of Employee Compensation on Teachers’ Performance in Public Secondary Schools in Nakuru West Sub-County, Nakuru County

Abstract

Employee performance is a fundamental determinant of educational quality, accountability, and service delivery within public secondary schools. Despite its critical role, evidence suggests that teacher performance in public secondary schools in Kenya, including those in Nakuru West Sub-County, has remained inconsistent and below optimal levels. Although the Teachers Service Commission (TSC) and the Government of Kenya have implemented salary structures, professional allowances, and recognition schemes aimed at motivating teachers and enhancing performance, the effectiveness of these compensation mechanisms in improving teacher performance remains unclear therefore the study sought to examine the effect of employee compensation on teachers’ performance in public secondary schools in Nakuru West Sub-County, Kenya. Anchored on Herzberg’s Two-Factor Theory (1959), the research adopted a correlational descriptive design. The target population comprised 271 TSC-employed teachers across 7 public secondary schools and 4 TSC officers at the Sub-County Education Office. Using Nassiuma’s formula, a sample of 73 teachers was proportionately selected via simple random sampling, while a census included all 4 officers. Primary data were collected through structured questionnaires administered via drop-and-pick method, yielding a 73% response rate (56 usable responses). A pilot study in Menengai High School in Nakuru East Sub County confirmed instrument reliability (Cronbach’s alpha: 0.876 for compensation; 0.768 for performance). Data was analyzed using SPSS version 25, employing descriptive statistics (means, standard deviations) and inferential statistics (correlation, regression). Results revealed strong agreement on compensation’s role (overall mean = 4.23) and teachers’ performance (overall mean = 4.34). Correlation analysis showed a strong positive relationship (r = 0.974, p = 0.000), while regression indicated a unit increase in compensation leads to a 2.300-unit rise in performance (β = 2.300, p = 0.000). The study concluded that employee compensation has a significant effect on teachers’ performance in public secondary schools in Nakuru West Sub-County, Nakuru County. The study recommends that TSC and SRC review packages for competitiveness, ensure timely payments, and integrate non-financial incentives to enhance motivation, retention, and instructional quality.