Financial Support and Employee Performance in Non-Governmental Organizations (NGOs) in Kenya: Moderating Effect of Top Management Commitment

Abstract

Employee performance is key to the success of organizations in the competitive world. Employee welfare practices, such as employee financial support, must be put in place to improve employee performance, whether in public or private organizations. The main objective of this study was to determine the relationship between employee financial support and employee performance, as well as the moderating effect of the top management commitment in non-governmental organizations in Nairobi County, Kenya. The study used a cross-sectional survey research design. The target population was all the 14,323 employees in NGOs in Nairobi County, Kenya. The sample population was 391 who were stratified as top managers, middle-level managers, and Lower level managers. The sample was selected through the use of purposive, stratified, and simple random sampling procedures. While interviews and questionnaires were used as primary data sources, secondary data was obtained from reviewed journals, books, and articles. The study made use of relevant theories on the subject, including Human Relations Theory, Herzberg's two-factor theory, and Abraham Maslow's theory of the hierarchy of needs. To determine the validity and reliability of the tools, a pilot study was conducted. Version 25 of the Statistical Packages for Social Sciences software was used for data analysis. Frequencies, means, correlations, and multiple linear regression were employed in the analysis, along with inferential and descriptive statistics as diagnostic tests for the tools. Pie charts, graphs, and tables were used to present the study's findings. The research found that there exists a positive and significant relationship between employee financial support and employee performance when moderated by the top management commitment in non-governmental organizations in Nairobi County, Kenya. The research determined that, due to its importance in boosting morale and overall employee performance, the NGOs’ top management should put employee financial support policies in place, factor the financial support in their budget and plans, and enhance communication with the employees. The study recommended further research in other counties using similar variables.