Employee Reward Systems and Knowledge Retention in Non-Governmental Organizations in Kenya

Abstract

Knowledge retention is important for non-governmental organizations due to several factors that contribute to their effectiveness, sustainability, and mission fulfillment. However, non-governmental organizations have been experiencing a challenge in their knowledge retention. This study therefore sought to examine the effect of employee reward systems on knowledge retention within NGOs operating in Nairobi, Kenya. The specific objectives of the study were to establish the effect of monetary rewards, employee development, recognition, and Skill-based reward on knowledge retention among non-governmental organizations in Kenya. The study was anchored on Vroom's expectancy theory, human capital theory, and social exchange theory. The study adopted a descriptive research design. The target population of the study was 636 heads of finance, fundraising and communications, human resource, and programs departments in the 159 NGOs based in Nairobi County. The study used Slovin's Formula in the determination of the sample size. Stratified random sampling was used in the selection of the sample size. The study used primary data, which was collected by use of semi-structured questionnaires. Both quantitative and qualitative data were generated by the questionnaires. The study concluded that Monetary rewards are vital and significantly contribute to increased knowledge retention in NGOs in Nairobi County Kenya. If employees receive monetary rewards in the form of bonuses, compensation for overtime, and competitive salary, then knowledge retention will be maintained.