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Compensation Practices for Firm Productivity: Empirical Study at Multinational Tea Companies in Kericho County in Kenya

Multinational organizations face challenges in firm productivity in terms of quality, quantity of work, effectiveness and employee performance. The study assessed the effect of incentives on the performance of multinational tea companies in Kericho County. Expectancy theory was adopted. A descriptive research design was appropriate for the study which targeted 99 senior, middle and lower manager of James Finlays Kenya Limited, George Williamson Limited and Unilever Limited in Kericho County. A census of 99 managers was used as respondent. Data was obtained using questionnaires. The data was analyzed using descriptive especially the mean and standard deviation. While inferential statistics was utilized to test significance. The analyzed data was presented using percentages and frequency distribution tables and chart. The study result indicated that there was significant effect of monetary pay, allowance, fringe benefit and incentive on firm productivity. The study concluded that compensation practices significantly affected on firm productivity (p<0.05). The study recommended that other incentive should be explored based on employee performance which results in firm productivity.