End of year employee rewards survey 2015 Kenya

End of Year Employee Rewards Corporate Staffing Services Talent Report Q4 2015

Talent Report – Quarter Four 2015

Topic: End Of Year Employee Rewards Survey

Contact Person : Managing Partner

:Perminus Wainaina : [email protected] :0722 495 107

December 2015

End of Year Employee Rewards Corporate Staffing Services Talent Report Q4 2015 Page i

TABLE OF CONTENTS

1. EXECUTIVE SUMMARY ........................................................................................................ III

2. INTRODUCTION ................................................................................................................... 1

3. KEY SURVEY FINDINGS ........................................................................................................ 2

4. CONCLUSIONS AND RECOMMENDATIONS ......................................................................... 14

End of Year Employee Rewards Corporate Staffing Services Talent Report Q4 2015 Page ii

LIST OF FIGURES

Figures Figure 3.1: Organizations Core Business ............................................................................................. 2

Figure 3.2: How Organizations will Award Year-End Perks/Gifts to Employees in 2015 .................... 3

Figure 3.3: Type of Year-End/Holiday Perks Employers will be Awarding Employees in 2015 .......... 4

Figure 3.4: To Whom The Year-End/Holiday Awards will be Granted ................................................ 5

Figure 3.5: Specific Department to Receive Holiday Awards .............................................................. 6

Figure 3.6: Criteria Used to Determine Amount/Value of Year End/Holiday Awards ........................ 7

Figure 3.7: Amount/Value (Kshs) of Year End/Holiday Awards Per Staff ........................................... 8

Figure 3.8: Motive for Awarding Year-End/Holiday Bonuses/Perks/Gifts .......................................... 8

Figure 3.9: Comparison Between 2015’s Value of Year End/Holiday Awards and Past Year ............. 9

Figure 3.10: Reasons for Not Awarding Cash Bonuses/Perks/Gifts to Employees in 2015 .............. 10

Figure 3.11: Ideal Methods to Show Appreciation to Employees .................................................... 11

Figure 3.12: Year-End Awards Currently Given to Employees by Employers ................................... 12

Figure 3.13: Preferred Year-End Awards by Employees in 2015 ...................................................... 12

End of Year Employee Rewards Corporate Staffing Services Talent Report Q4 2015 Page iii

1. EXECUTIVE SUMMARY

Corporate Staffing Services Ltd commissioned the consultant to carry out a survey on End of Year

Employee Rewards for the year 2015. The survey was carried out in the month of November through an

online survey.

The survey tool was sent to employers, employees, Human Resource Managers (members of IHRM –

Institute of Human Resource Management) and Business Owners/entrepreneurs. The information

gathered was then analyzed and compiled into this report.

Findings

Non-monetary gifts to employees will be the most offered form of reward to employees this year-end

standing at 44%, which is followed by monetary awards at 33%. This may be attributed to the flexibility

and variety of non-cash incentives and recognition programs in responding to diverse employee needs.

Overall, out-of town retreats to a holiday destination e.g. Mombasa, Naivasha etc are the least popular

recognition and rewards programs by employers at 1%. This is only common for senior level

management.

When it comes to which employees will be receiving gifts or awards this year end, 80% of employers

will be rewarding all employees while only a small fraction of the employers will be awarding a

department or a list of best performing employees. As such, employers who are not able to award

every single employee will have to select the departments that are key to the business. For example, in a

medical practice, doctors will be rewarded and in an accounting firm, Accountants are most likely to be

rewarded, etc.

On criteria used by employers to determine the value of year end awards, the survey found that a

majority of organizations (45%) will determine the amounts/value of their reward and recognition

programs through management’s discretion (i.e. No known criteria for its determination are used). This

can be attributed to various factors, including the need to maintain privacy and confidentiality as well as

to avoid contractual agreements that may lead to legal battles.

In comparison to past years, the amount/value of year-end bonuses/gifts/perks in 2015 is expected

to decrease; an occurrence that is backed by 40% of employees. This is credited to the current

economic state that is plaguing many organizations’ bottom-lines and profitability.

As employers choose to reward through gifts instead of cash this year, most organizations are

expected to give gifts or awards valued between Kshs 1,000 to 5,000 per employee. Only a small

fraction (13%) of the employers intends to reward employers with an award valued 10,000 and above.

The survey also finds that most of the organizations award holiday gifts/perks and bonuses as a

tradition/norm of the organization. Others give holiday awards as a means to share profits when the

company experiences an increase in profitability, to appreciate their employees’ performances through

the year and as a means of retaining them.

End of Year Employee Rewards Corporate Staffing Services Talent Report Q4 2015 Page iv

40% of employers not rewarding employees this year attributed their decision to the prevailing

economic conditions in the country which have affected their bottom-line, while 20% say they have

adopted a year-round recognition and awards programs rather than a one-off year-end/holiday award.

The survey also defines a clear difference between employee and employer expectations when it

comes to end of year rewards. A Majority of the employers (40%) are of the opinion that a year-round

reward and recognition program other than a one-off end-year/holiday award is better, followed by gift

cards/items rather than cash bonuses at 22%. On the other hand, 55% of the 2, 702 employees in the

survey would rather receive a pay increment and 28% prefer cash bonuses. Only 10% were of the same

opinion as that of majority employers to give gifts.

Currently, 34% of employers offer their employees an office (end-of-year) party/lunch/meal and

following closely at 33% are employers that give gift cards i.e. gift vouchers and items. The employees,

however, would prefer a pay raise, followed by a cash bonus.

Recommendations

Given the current economic climate, employers, and especially small-business owners may hesitate to

award year-end bonuses. However, financial uncertainty should give them even more reason than ever

to make the effort. Non-monetary rewards are especially useful when times are lean and business is

down.

Although different employers have varying budgetary allocations for end of year reward and recognition

programs, it’s essential that employers exercise some holiday cheer around their workplace through

creative and thoughtful end-of-year benefits and rewards to celebrate a workforce that has dutifully

taken on extra work and stress during trying economic times. Whether it’s giving a small gift or throwing

a holiday bash, a reward and recognition program shows that the employer cares about his employees’

welfare. When it comes to gifts, it’s the thought rather than the amount/value of the award that counts.

Rewards and incentives in the workplace have benefits for both employees and employers. When

recognized for stellar performance and productivity, employees have increased morale, job satisfaction

and are more engaged. As a result, employers experience greater efficiency and an increase in

productivity.

Reward and recognition programs need to be ongoing to be effective. If an employer only offers

sporadic rewards, then employees become frustrated rather than be motivated.

Employers should give the employees a chance to select the gift of their choice as they are all different

and vary in tastes and preferences. A “one-size fits all” kind of reward and recognition program will not

work.

End of Year Employee Rewards Corporate Staffing Services Talent Report Q4 2015 Page 1

2. INTRODUCTION

As Kenyan workers enter the heart of the holiday season, many will be in a festive mood and expecting

something from their employers; be it year-end gifts, office party, or bonuses (hard cash).

But considering the tough economic environment, what are employers planning? This survey aims to

find out the plans and perception of employers when it comes to rewarding employees. This survey

establishes the incentives and recognition programs that employers in Kenya intend to use to appreciate

employees for work well done in the year 2015.

This End of Year Rewards survey 2015 was commissioned by Corporate Staffing Services Ltd, a leading

recruitment firm in Kenya providing recruitment and human resource consultancy services to both local

and international firms interested in hiring Kenyan staff.

Objectives of the Survey

1. To examine the rewards and recognition programs employers in Kenya intend to use to appreciate

their employees for a year of work done in 2015.

2. To establish the types of monetary and non-monetary programs employers in Kenya will use to

appreciate their employees for work well done in 2015.

3. To establish the motives behind the choice of reward and recognition programs employers will use

to appreciate their employees in 2015.

4. To examine the preferred rewards and recognition programs for employers and employees.

Audience

• Employers

Employees

Business Owners/Entrepreneurs

• Human Resource Managers

Methodology and design

Survey period: November 2015

Sample size:

402 employers (312 Human Resource Managers, 90 Business Owners/Entrepreneurs) and 2,702

employees spread across the country.

Data collection: An online survey was carried out, targeting employers, employees, Business Owners and

HR Managers (members of IHRM – Institute of Human Resource Management). Responses were

collected and findings analyzed and compiled into this report.


3. KEY SURVEY FINDINGS

The survey respondents are drawn from various sectors, including banking & finance, retail,

manufacturing, media & communication, agriculture, hospitality, logistics, healthcare, education,

professional practice (i.e. audit, engineering etc.), energy, consulting, parastatal, NGO and the Public

Service (National & County Govts).

This is as outlined in the figure 3.1 below.

Figure 3.1: Organizations Core Business

10%

15%

15%

5%

10%

2%

5%

5%

2%

2%

8%

5%

2%

2%

12%

0% 2% 4% 6% 8% 10% 12% 14% 16%

Banking/Financial

Retail

Manufacturing

Health Care

NGO

Media/Communication

Education

Consulting

Public Service (National and County Govts)

Parastatal

Professional Practice (Accounting, Engineering)

Hospitality

Logistics

Energy

Agriculture

Respondents were selected upon consideration on various factors i.e. the different sectors, years of

doing business and size of organization(including start ups and fully established organizations) and the

type of ownership.

3.2 How Organizations will Award Year-End Perks/Gifts to Employees in 2015

The survey found the majority (44%) of the employers will provide a non-cash gift, 33% will grant a

monetary award, 8% of the organizations will not award any type of year-end/holiday monetary or non-

monetary perks or gifts and 15% will not give a holiday/year-end bonus/gift this year though they have

awarded in the past. This is illustrated in Figure 3.2 below.


Figure 3.2: How Organizations will Award Year-End Perks/Gifts to Employees in 2015

15%

8%

33%

44%

0% 10% 20% 30% 40% 50%

No, we have awarded year-end/holiday bonuses in the past, but we will not be doing so this year due to the economy

No, we do not award any type of year-end/holiday monetary or non-monetary

bonus/perks/gift.

Yes, we will award a monetary award to all employees

Yes, we will provide a non-monetary gift to all employees

Monetary rewards are incentives given to employees in the form of money. They include bonuses, salary

increment, the 13th pay (equivalent to a month’s pay), employee stock options, profit sharing plans and

paid time off. These incentives encourage friendly competition between associates when linked to job

performance and are a great motivator for employees.

Non-monetary rewards on the other hand, are offered through perks or gifts, no cash is involved. These

can be through leave, shopping vouchers, lunches and outings,extended leave days, recognition through

various awards or even gifts. When rewards for performance are not based upon money, the culture of

a company tends to value recognition instead of the drive for money. Simultaneously, companies that

use non-monetary reward systems spend less money motivating their employees and more money on

other areas of the business.

In the case where employers do not reward their employees in either of these two ways (8%of

employers surveyed), this is usually a result of various things. Some employers lack the budget to do so,

they don’t know how to go about it, sometimes it’s just the norm (like for government and parastatals)

and others choose to award employees throughout the year instead of every end of the year. For the

15% employers not awarding employees for this particular year, they highlighted the economy as one of

the reasons(as portrayed in figure 3.2 above), increase in the costs of doing business, high staff cost and

the current high cost of foreign exchange.


3.3 Type of Year-End Perks or Gifts Employers Will Be Awarding In 2015

35% of the employers will award their employees through gift items or cards, 34% will hold office

outings, including office parties, lunches etc, 20% of the employers will award their employees cash

bonus/a salary increase or give a 13th cheque, 10% will grant extra days off to their employees which

translates to longer holiday period break and 1% will organize a retreat in an out-of-office/town

destination. This is illustrated in figure 3.3 below.

Figure 3.3: Type of Year-End/Holiday Perks or Gifts Employers will be Awarding Employees in 2015

1%

34%

10%

35%

20%

0% 5% 10% 15% 20% 25% 30% 35% 40%

A retreat in a holiday destination (Mombasa, Lukenya, Nanyuki, Naivasha etc)

Office outings including office parties/lunches/meals etc

Extra days off (Breaks from 13th December - 1st week in January)

Gift items or cards

Cash bonus/salary increase/13th Cheque

With the highest number of employers prefering to reward non-cash incentives this year through cards,

gifts and office outings, it is clear that employers consider bonding and team work that is achieved from

outings a great motivator. Through lunches, parties and outings, employees are able to bond among

each other which is great for team work.

The 20% employers giving cash to employees this year will be doing so either as a result of a contractual

obligation, such as is the case with sales and marketing, increased revenue this year or will be solely

rewarding individual performance.

Under retreats that accounted for 1% of the respondents, this is common across Senior level

management positions and is not a preference for most employers.

3.4 To whom year end awards will be awarded

While some employers award their employees as a way to show appreciation for individual performance

and to improve morale, other employers grant year-end/holiday gifts/cash bonuses/perks to their staff

simply because of established practice; the norm. Other employers will award cash bonuses solely on

the overall performance of the organization rather than on individual input.


The findings of the survey indicate that 80% of the organisations will award all employees with the

holiday bonus/perks/gifts, 10% will award only the best performing employees and the rest 10% will

award the best performing departments only. Illustrated in figure 3.4 below.

Figure 3.4: To Whom The Year-End/Holiday Awards will be Granted

10%

10%

80%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Award will be given to the best performing department only

Award will be given to the best performing employees only

Award will be given to every employee of the company



and involvement in organizational functions. As a result, employers experience greater efficiency and an

increase in productivity. This efficiency and productivity is experienced more when every employee in

the organization receives a reward, instead of just a select few. This is because it increases morale and

develops teamwork better, explaining the 80% outcome.

3.5 Specific Departments That Will Be Receiving Rewards

The organizations intending to award only the best performing departments were asked to mention

these departments. About 30% of the employers mentioned sales and marketing departments, which

could be attributed to contractual agreements that come with sales jobs, 18% mentioned the Technical

departments (e.g. Engineering, Quality Assurance and Control departments), 8% mentioned Accounting

and Finance, 12% mentioned Administration and Customer Service department, 19% mentioned other

departments, including the core business departments e.g. Research and development. Others

mentioned included operations IT, Human Resource, Procurement and Logistics and the Legal

department. Illustrated in figure 3.5 below.


Figure 3.5: Departments Receiving End of Year/Holiday Awards

19%

2%

18%

5%

2%

2%

2%

12%

8%

30%

0% 5% 10% 15% 20% 25% 30% 35%

Others (e.g. R&D, Nursing, Training etc)

Legal

Technical Departments (Engineers, QS etc.)

Procurement & Logistics

Human Resources

IT - Information Technology

Operations

Administration, Customer Service etc.

Accounting and Finance

Sales and Marketing

The type of departments chosen by employers varies across different organizations and their core

business. If an organization’s core business is IT, then the IT department would logically be rewarded if

everything runs smoothly that year. The same is the rationale when employers choose to reward specific

individuals. It is usually dependent on the input of the individual or department in the realization of

company goals.

3.6 Employers’ criteria in determining the amount of bonuses or type of awards

The majority, 45% of the organizations mentioned that the amount or value of the award were

determined through management’s discretion (no known criteria for its determination are used), 5%

mentioned that the amount or value of gift/award is determined by the individual’s contribution to the

department or company’s overall performances, 10% described that the determination of the amount

or value of the award is determined through a performance based approach and 40% mentioned that

the value or size of the award is determined by the company’s overall annual performance. Illustrated in

figure 3.6 below.


Figure 3.6: Criteria Used to Determine Amount/Value of Year End/Holiday Awards

40%

10%

5%

45%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Company’s overall performance throughout the year.

Determined by a performance-based year-end bonus to selected employees

Amount is determined by individuals’ contribution to departmental and/or overall companys performance

The size of the monetary bonus awarded is determined by the company’s management discretion. No known

criteria for its determination are used.

As determined by the survey, a management role in determining reward varies considerably from firm

to firm in much the same way as the overall design of the reward system. Management may use

discretion to determine the amount/value of the awards, organizations would like to maintain

confidentiality on disclosure of the financial status and lack of know-how on how to calculate a bonus.

Other factors would include the need for employers to maintain privacy and avoid any legal ties by

excluding any form of contractual agreement. Restrictions for Government offices and parastatals on

public expenditure, which places emphasis on cost reduction would also mean that the design of reward

systems will be affected.

Ultimately, when it comes to awarding gifts/bonuses/perks, it’s the thought that counts and that

thought is decided by management.

3.7 Amount of cash bonuses & values of Gift items employers are intending to award employees

Employers were asked to mention the amount or value of award this year’s office budget would allow

per staff. A Majority, 40%, of the employers budget will allow for an award that is valued between Kshs

1,000 to 3,000 and 20% of the employers will grant an award valued between Kshs 3001 to 5,000. These

could cater for gifts in the form of shopping vouchers, wallets, lunches, office parties, household stuff,

airtime and any other gifts in that range.

27% of the employers said they will grant an award to their employees valued between Kshs 5001 to

10,000, which could cater for a retreat, salary increase, vouchers to a spa, electronics and even home

appliances. The rest 13% said they will reward their employees with a bonus or gift valued at Kshs

10,001 and above. This category could mean a bonus, salary increment, a getaway or 13th pay for the

employees. The results are illustrated in figure 3.7 below.


Figure 3.7: Amount/Value (Kshs) of Year End/Holiday Awards Per Staff

40%

20%

27%

13%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

1,000 – 3,000 3,001 – 5,000 5,001 – 10,000 10,001 and above

Amount (in Kshs) Per Staff

3.8 Employer’s Motive For End of Year Awards

40% of the organizations award holiday gifts/perks and bonuses as a tradition/norm of the organization,

15% of the employers award holiday bonuses/perks/gifts to their employees as a means to share profits

when the company experiences an increase in revenue, 20% offer employees bonuses/perks/gifts to

their employees to appreciate their contribution and 25% award their employees through the holiday

season as a means to retaining them. Illustrated in figure 3.8 below.

Figure 3.8: Motive for Awarding Year-End/Holiday Bonuses/Perks/Gifts

25%

20%

15%

40%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Employee retention

Employees performance appreciation

Increase in after-tax corporate profits

Tradition/norm of the organisation

By bringing employees together to celebrate what they have accomplished that year, employers not

only motivate their employees but also promote team work. Holiday gifts are an important key to

employee retention and overall job satisfaction. When people are rewarded for a job well done and

recognized at the end of the year, they will remember the experience and feel the need to stay in the


organization. With employee retention, organizations are able to cut on recruitment costs, improve

morale as employees don’t have to bear working with a new colleague every now and them, caters for

business continuity and reduces costs in training new staff.

3.9 Change in Amount/Value of This Year’s End of Year Rewards From Past Years

17% of the employers will increase this year’s monetary value of the holiday award to their employees,

40% of the organizations will decrease the value or amount of this year-ends bonus or value of the

gifts/perks, 30% of the employers will award their employees bonuses/gifts/perks at about the same

value or amount as last year’s, while 13% will be awarding a cash bonus/perks/gifts to their employees

this holiday season after not offering any award to their employees in the last one or more years.

Illustrated in figure 3.9 below.

Figure 3.9: Comparison Between 2015’s Amount/Value of Year End/Holiday Awards and Past Years

Awards

13%

30%

40%

17%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

We are instituting year-end bonus/perk/gift after one or more years of not offering such awards

The monetary value of this year’s-end bonus will be about the same as last year

The monetary value of this year’s-end bonus will decrease

The monetary value of this year’s-end bonus will increase

23% of the employers will not be awarding a monetary or non-monetary reward to their employees this

year. This could be as a result of the current economy woes affecting various organizations, for example

hospitality industry has been affected by the travel advisories and insecurity leading to low business.

Some startups will also not be rewarding employees.

Our survey sought to find out the motives for the non-award from the employers who mentioned they

will not be granting these rewards.


3.10 Employers’ Motive for Not Giving End of Year Awards This 2015

With the current economy, some organizations have been forced into layoffs and a stall in new hires, it

is not surprising that this has affected end of year rewards. The majority 40% of the employers

mentioned that the prevailing economic conditions in the country have affected the bottom-line. But

some employers still see value in retaining their employees through rewards even in a tough economy.

At 20%, employers mentioned that their organizations have adopted a year-round recognition and

awards programs rather than a one-off year-end/holiday award, while 15% mentioned that the

organization has adopted more effective ways of boosting employees morale and loyalties rather than

the holiday awards.

Through an all year round recognition program, this may be a better motivator for employees and good

strategy to retain employees. Employees see one year as a long time to wait for an appraisal. On the

other hand, it could also save costs avoiding stress every end of year, which could be the reason 15% of

employers prefer other forms of employee motivation. They want to save on costs.

9% mentioned that the organization has realized that year-end/holiday bonuses do not or are

temporary morale boosters and 8% mentioned that year-end/holiday awards are not their company’s

norms/traditions. This is illustrated in figure 3.10 below.

Figure 3.10: Reasons for Not Awarding Cash Bonuses/Perks/Gifts to Employees in 2015

8%

8%

20%

15%

40%

9%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Other (Specify)

It is not the company’s norm to award year -end bonuses

The company has adopted year-round efforts rather than a one off end-year bonus award

There are more effective ways of boosting employees morale and loyalties to the company

Prevailing economic conditions have affected the performance of the company

Realized the year-end bonuses are not/temporary morale boosters

3.11 Employee Ideal Methods To Show Appreciation

The survey sought to establish the employers’ opinions on the ideal recognition and reward programs

that would best show their appreciation to their employees. 40% of the employers prefer an year-round


reward and recognition program to a one-off end-year/holiday awards, 22% would prefer gift

cards/items rather than cash bonuses, 18% would prefer cash bonuses, 8% would prefer the employers

offered end-of-year office parties/outings and lunches, 5% would prefer the employers offered annual

pay rises and 2% would prefer the employers granted more off days to their employees during the

holiday season. Findings are illustrated in figure 3.11 below.

Figure 3.11: Ideal Methods to Show Appreciation to Employees

5%

40%

8%

22%

2%

5%

18%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Other (Specify)

Year-round efforts rather than a one off end-year bonus awards

Holiday party/office outing/lunch

Gift cards/items other than money

Days off

Annual Pay raises

Bonuses & Cash Payments

3.12 End of Year Awards Currently Offered To Employees

The survey further assessed employees to find out the current recognition and reward programs their

employers use to appreciate them at their workplaces. The majority, 34% mentioned that employers

offered them a holiday party/lunch/meal , 33% mentioned they were awarded gift cards, i.e. gift

vouchers, 20% were given cash bonuses, 4% were given pay raises, 2% were given days off or an early

holiday break and the rest 7% were not given any monetary or non-monetary award. The Figure 3.12

below illustrates this finding.


Figure 3.12: Year-End Awards Currently Given to Employees by Employers

7%

4%

2%

33%

34%

20%

0% 5% 10% 15% 20% 25% 30% 35% 40%

None

Pay Raises

Days off or early Holiday Break

Gift Cards i.e. Shopping vouchers

A holiday party/lunch/meal

Cash Bonuses

3.13 Preferred End of Year Awards By Employees

To establish how employees would prefer their employers showed them their appreciation for work

done, the employees were asked, “How do you wish your company showed appreciation to

employees?” In response, 55% of the employees said pay raises, 28% said cash bonuses, 10% said gift

cards, 2% said a holiday/lunch/office party, 2% mentioned days off or early holiday breaks and the rest

mentioned other rewards and recognition items. Finding illustrated in figure 3.13 below

Figure 3.13: Preferred Year-End Awards by Employees in 2015

3%

2%

10%

2%

28%

55%

0% 10% 20% 30% 40% 50% 60%

Other

Days off or early Holiday Break

Gift Cards i.e. Shopping vouchers

A holiday party/lunch/meal

Cash Bonuses

Pay Raises


While it’s no surprise that employees say they value cold, hard cash, the amount of a typical holiday

reward—especially for small businesses—often is modest. So employers may be justified in thinking of

non-cash rewards to appreciate their employees.

Likewise, a holiday party may not be what employees would select if offered the price of the meal in

cash instead, but employers are probably not mistaken in thinking the conviviality of a party has greater

benefits in terms of fostering engagement with the company and bonding among employees.

Employers should give the employees a chance to select the gift of their choice and presenting them

with a year-end ceremony. Employees are different with varying tastes and preferences. A “one-size fits

all” kind of reward and recognition program will not work. High-performing employees that value

money and other monetary perks might find non-monetary reward systems lacking the incentives

needed to bolster motivation and increase their productivity.

Not all employees value handwritten notes or walls that display the employee of the month. Some

employees might also feel that their company is not willing to pay for their hard work. Additionally, if a

competing business offers monetary rewards to its employees, the company that offers non-monetary

rewards risks losing employees to the competition.


4. CONCLUSIONS AND RECOMMENDATIONS

Non-cash gifts to employees will be the most offered type of reward to employees this year-end. This

will be followed by monetary awards. Given the current economic crisis, employers, and especially

small-business owners may hesitate to award year-end bonuses. However, financial uncertainty should

give them even more reason than ever to make the effort. Non-monetary rewards are especially useful

in these times. Employers should applaud their employees and promote a positive office culture, by

bringing their employees together to celebrate what they have accomplished together professionally, as

well as on a personal level.

Employee reward and recognition programs need to be ongoing to be effective. If an employer only

offers sporadic rewards, then employees become frustrated rather than motivated. Almost all of the

organisations that intend to award their employees this coming holiday/year-end will award all the

employees. Only a small fraction of the employers will be awarding a department or a list of best

performing employees. About a third of the organizations intending to award only the best performing

departments will award the sales and marketing departments.

The Majority of organizations determine the amounts/value of their reward and recognition programs

through management’s discretion (no known criteria for its determination are used). The amount/value

of this year-ends bonus/gifts/perks is expected to decrease as compared to previous years. This may be

attributed to the current economic state that is affecting many organizations bottom-lines and

profitability.



and engagement. As a result, employers experience greater efficiency and an increase in productivity.

Through workplace rewards and incentives, employers and workers enjoy a positive and productive

work environment. This year-end awards to the employees by employers are expected to be valued

between Kshs 1,000 to 5,000. Only a small fraction of the employers intends to award employers with

an award valued 10,000 and above.

Employers should give the employees a chance to select the gift or award of their choice as they are

different with varying tastes and preferences. A “one-size fits all” kind of reward and recognition

program will not work.

The employers not rewarding employees this year attributed their decision to the prevailing economic

conditions in the country which have affected the bottom-line of the company. Others have adopted a

year-round recognition and awards programs rather than a one-off year-end/holiday award.

The Majority of the employers are of the opinion that a year-round reward and recognition program

other than a one-off end-year/holiday award is a better option. This is followed by awarding gift

cards/items rather than cash bonuses. Why? Gift cards/vouchers are considered as an original gift idea


and they perfectly suit different people regardless of their individual need. They offer Freedom to

choose, wide reach and flexibility.

Most employers offer their employees an office (end-of-year) party/lunch/meal, followed by gift cards

i.e. gift vouchers and cash bonuses. The employees, however, would prefer pay raises, followed by cash

bonuses.

Although different employers have varying budgetary allocations for end of year reward and recognition

programs, it’s essential that employers exercise some holiday cheer around their workplace through

creative and thoughtful end-of-year benefits and rewards. Whether it’s giving a small gift or throwing a

holiday bash, a reward and recognition program shows that the employer cares about their employees’

welfare.

Ultimately, when it comes to awarding gifts/bonuses/perks, it’s the thought that counts. Appreciation

awards don’t need to cost a fortune; employees will relish a simple celebration if it’s thoughtful and

everyone can participate.

Date post:	13-Apr-2017
Category:	Recruiting & HR
Upload:	corporate-staffing-kenya
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End of year employee rewards survey 2015 Kenya

Recruiting & HR