Rewards and Employee Performance in Government Agencies: Evidence from Kampala Capital City Authority (KCCA), Uganda

Despite continued reforms in Uganda’s public service compensation framework, limited empirical evidence exists on how specific reward components shape employee performance in local government agencies. This study examined the relationship between rewards and employee performance at Kampala Capital City Authority (KCCA), with attention to compensation, performance recognition, career development opportunities, and fringe benefits. Guided by Herzberg’s Two Factor Theory and Maslow’s Hierarchy of Needs, the study adopted a mixed methods descriptive survey design. A sample of 85 employees was drawn from a population of 108 using Yamane’s formula at a 5% level of precision, with stratified and purposive sampling used to ensure representation across departments. Data were collected through structured questionnaires and interviews. Rewards were measured through compensation, recognition, career development, and fringe benefits, while employee performance was assessed using indicators such as service quality, task completion, teamwork, dependability, and creativity. Descriptive statistics, correlation analysis, and multiple linear regression were used to analyse the data. The findings showed that all reward dimensions were positively associated with employee performance. Fringe benefits emerged as the strongest predictor, followed by career development opportunities, compensation, and performance recognition. The model was statistically significant, although the findings should be interpreted with caution because the study was limited to one agency and a relatively small sample. The study concludes that both monetary and non monetary rewards matter, but a balanced reward system that strengthens employee welfare, growth, and recognition is more likely to improve performance in public institutions. Policy makers and managers in government agencies should therefore design integrated reward frameworks that combine fair compensation with career support, recognition, and benefits in order to improve motivation, retention, and service delivery.

Employee Performance; Reward System; Compensation; Performance Recognition; Career Development; Fringe Benefits; Employee Motivation; Job Satisfaction; Public Sector; Kampala Capital City Authority

1. Ali, B. J., & Anwar, G. (2021). An Empirical Study of Employees’ Motivation and its Influence Job Satisfaction. International Journal of Engineering Business and Management, 5(2), 21. [Google Scholar] [Crossref]

2. https://doi.org/10.22161/ijebm.5.2.3 [Google Scholar] [Crossref]

3. Ayi, T. D. (2023). The Relationship between Reward Management Practices and Employees’ Behavior. International Journal of Multidisciplinary Studies and Innovative Research, 11(5), 1727. [Google Scholar] [Crossref]

4. Berman, E. M., Bowman, J. S., West, J. P., & Wart, M. R. V. (2021). Human resource management in public service: Paradoxes, processes, and problems. Cq Press. [Google Scholar] [Crossref]

5. Cropanzano, R., Keplinger, K., Lambert, B., Caza, B. B., & Ashford, S. J. (2022). The organizational psychology of gig work: An integrative conceptual review. Journal of Applied Psychology, 108(3), 492. https://doi.org/10.1037/apl0001029 [Google Scholar] [Crossref]

6. Dunnette, M. D., & Herzberg, F. (1967). Work and the Nature of Man. Administrative Science Quarterly, 12(1), 170. https://doi.org/10.2307/2391218 [Google Scholar] [Crossref]

7. Elrayah, M., & Semlali, Y. (2023). Sustainable Total Reward Strategies for Talented Employees’ Sustainable Performance, Satisfaction, and Motivation: Evidence from the Educational Sector. Sustainability, 15(2), 1605. https://doi.org/10.3390/su15021605 [Google Scholar] [Crossref]

8. Hilton, S. K., Arkorful, H., & Martins, A. (2021). Democratic leadership and organizational performance: the moderating effect of contingent reward. Management Research Review, 44(7), 1042. https://doi.org/10.1108/mrr-04-2020-0237 [Google Scholar] [Crossref]

9. Holbeche, L. (2022). Aligning Human Resources and Business Strategy. [Google Scholar] [Crossref]

10. https://doi.org/10.4324/9781003219996 [Google Scholar] [Crossref]

11. Iddekinge, C. H. V., Arnold, J. D., Aguinis, H., Lang, J. W. B., & Lievens, F. (2022). Work Effort: A Conceptual and Meta-Analytic Review. Journal of Management, 49(1), 125. [Google Scholar] [Crossref]

12. https://doi.org/10.1177/01492063221087641 [Google Scholar] [Crossref]

13. Ihemereze, K. C., Eyo-Udo, N. L., Egbokhaebho, B. A., Daraojimba, C., Ikwue, U., & Nwankwo, E. E. (2023). IMPACT OF MONETARY INCENTIVES ON EMPLOYEE PERFORMANCE IN THE NIGERIAN AUTOMOTIVE SECTOR: A CASE STUDY. International Journal of Advanced Economics, 5(7), 162. https://doi.org/10.51594/ijae.v5i7.548 [Google Scholar] [Crossref]

14. Investigating The Impact of Organizational Culture on Employee Retention: Moderating Role of Employee Engagement. (2023). Journal of System and Management Sciences, 14(4). [Google Scholar] [Crossref]

15. https://doi.org/10.33168/jsms.2023.0429 [Google Scholar] [Crossref]

16. Katabalo, C. V., & Mwita, K. (2024). The Role of Compensation on Job Satisfaction, Employee Performance and Organisational Performance. Science Mundi, 4(1), 137. [Google Scholar] [Crossref]

17. https://doi.org/10.51867/scimundi.4.1.12 [Google Scholar] [Crossref]

18. Kavale, S. (2017). Correlation analysis with example. Global Journal of Science Frontier Research, 17(1). [Google Scholar] [Crossref]

19. Khairy, H. A., Baquero, A., & Al‐Romeedy, B. S. (2023). The Effect of Transactional Leadership on Organizational Agility in Tourism and Hospitality Businesses: The Mediating Roles of Organizational Trust and Ambidexterity. Sustainability, 15(19), 14337. https://doi.org/10.3390/su151914337 [Google Scholar] [Crossref]

20. Manjenje, M., & Muhanga, M. (2021). Financial and non-financial incentives best practices in work organisations: a critical review of literature. [Google Scholar] [Crossref]

21. Manzoor, F., Wei, L., & Asif, M. (2021). Intrinsic Rewards and Employee’s Performance With the Mediating Mechanism of Employee’s Motivation. Frontiers in Psychology, 12, 563070. https://doi.org/10.3389/fpsyg.2021.563070 [Google Scholar] [Crossref]

22. Maslow, A. H. (1943). A theory of human motivation. Psychological Review, 50(4), 370. https://doi.org/10.1037/h0054346 [Google Scholar] [Crossref]

23. Mohammad, S. S., & Mohammad, M. J. (2023). Impact of Monetary and Non-monetary Rewards on Employee Performance. Journal of Law and Social Sciences-University of Turbat, 1(2), 54. [Google Scholar] [Crossref]

24. Moonlight, B. (2020). Non-monetary reward and Employee performance in parastatal organisations in Uganda: a case study of Civil Aviation Authority. In University of Kisubi. [Google Scholar] [Crossref]

25. Mugenda, O. M., & Mugenda, A. G. (2013). Research Methods Quantitative and Qualitative Approaches. Acts Press. [Google Scholar] [Crossref]

26. Mustafa, B., & Lleshi, S. (2024). The impact of lifelong learning and investments in employee development on employee productivity and performance. Multidisciplinary Reviews, 7(8), 2024175. https://doi.org/10.31893/multirev.2024175 [Google Scholar] [Crossref]

27. Olum, S., Adyanga, A. F., & Ocan, J. (2024). Theoretical Review of Pay Restructuring in Uganda’s Public Service Health Sector. International Journal of Advanced Research, 7(1), 35. [Google Scholar] [Crossref]

28. https://doi.org/10.37284/ijar.7.1.1656 [Google Scholar] [Crossref]

29. Saks, A. M. (2021). Caring human resources management and employee engagement. Human Resource Management Review, 32(3), 100835. https://doi.org/10.1016/j.hrmr.2021.100835 [Google Scholar] [Crossref]

30. Sung, W., & Kim, C. (2021). A Study on the Effect of Change Management on Organizational Innovation: Focusing on the Mediating Effect of Members’ Innovative Behavior. Sustainability, 13(4), 2079. https://doi.org/10.3390/su13042079 [Google Scholar] [Crossref]

31. Widarko, A., & Anwarodin, M. K. (2022). Work Motivation and Organizational Culture on Work Performance: Organizational Citizenship Behavior (OCB) as Mediating Variable.Golden Ratio of Human Resource Management, 2(2), 123. https://doi.org/10.52970/grhrm.v2i2.207 [Google Scholar] [Crossref]

32. Yamane, T. (1973). Statistics: An Introductory Analysis. In Virtual Defense Library (Ministerio de Defensa). Ministerio de Defensa. [Google Scholar] [Crossref]

33. https://bibliotecavirtual.defensa.gob.es/BVMDefensa/es/consulta/registro.do [Google Scholar] [Crossref]

• A Decadal Overview of Welfare Schemes in Telangana (2014–2024)
• Ubuntu and the Missed Development Goals in the Global South: Rethinking MDGs and SDGs through an African Philosophical Lens
• Exploring the Factors of Obesity: Insights from Johor State Civil Servants
• Navigating the Nexus: Challenges Faced by Part-Time Postgraduate Government Employees in Malaysia
• The Lived Experiences of Skilled Filipino Women Immigrants in Denmark