Authors : Anyumba Margaret Achieng; Dr. Yasin Gabon

Volume/Issue : Volume 11 - 2026, Issue 4 - April

Google Scholar : https://tinyurl.com/58mtar9r

Scribd : https://tinyurl.com/mtvtu2ha

DOI : https://doi.org/10.38124/ijisrt/26apr357

Note : A published paper may take 4-5 working days from the publication date to appear in PlumX Metrics, Semantic Scholar, and ResearchGate.

Abstract : This study investigates the effect of staff remuneration on organizational performance, specifically focusing on the transition to the Salaries and Remuneration Commission (SRC) payment framework. Despite the implementation of standardized wage structures in Kenya, a gap persists where employees under extensive supervision remain financially vulnerable, leading to organizational risks such as high turnover, absenteeism, and "quiet quitting." The study is grounded in Stakeholder, Expectancy, Equity, Agency, and Reinforcement theories, which collectively explore the link between financial rewards, perceived fairness, and productivity. Key objectives include assessing changes in organizational performance and employee wages post-SRC implementation, evaluating staff decision-making behavior, and examining the relationship between wage adjustments and professional conduct. Preliminary empirical reviews for 2025–2026 indicate that while the SRC framework aims to link pay to Key Performance Indicators (KPIs), the rising statutory deductions (SHIF, NSSF, and Housing Levy) have eroded net disposable income, creating a "take-home pay illusion." The study seeks to bridge the research gap regarding how these modern financial pressures and "shadow remuneration" (such as workplace flexibility) influence the psychological contract between employers and employees. The findings will provide critical evidence for policymakers, hospital directors, and payroll managers to design scalable, impactful remuneration strategies that enhance both employee welfare and national GDP.

Keywords : Staff Remuneration, Organizational Performance, SRC Framework, Net Disposable Income, Employee Motivation.

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