EFFECTS OF WAGE DIFFERENTIALS ON EMPLOYEE REMUNERATION IN THE JUDICIARY OF KENYA

Abstract

This research project sought to evaluate the effect of wage differentials in the remuneration of workforce in the Kenyan Judiciary. This study sought to establish the effect of wage differentials on employee remuneration in the Kenya’s Judiciary. The objectives of the study were to determine the effect of organization’s policies and procedures on employee remuneration in Kenya’s Judiciary, to find out how individual contribution has an effect on employee remuneration in Kenya’s Judiciary, to evaluate the effect of experience and skills on employee remuneration in Kenya’s Judiciary and to establish the effect of intra-firm differentials on employee remuneration in Kenya’s Judiciary. Various theories of remuneration were used to try and create a relationship between the dependent and independent variables. A critique of the theories was offered to provide an insight on why they can or cannot be used to dictate or explain the effect of wage differentials on remuneration of employees in the Kenya’s Judiciary. In order to ascertain the existence a correlation between variables, a descriptive research design will be adopted for the study. The target population comprised of employees in the Kenyan Judiciary who were subdivided into 3 subsectors. A sample of 368 employees was used in the study. A stratified random sampling method was used to ensure the sample is representative of the 3 subsectors of employees in the Kenyan Judiciary. Primary data was collected using structured close-ended questionnaires which were administered to the employee of the Kenyan Judiciary. To summarize the data, descriptive statistics such as mean and standard deviation will be used. To examine the effect of wage differentials on employee remuneration, multiple regression analysis was used and the results presented using charts and tables. The study found that organizational policies and procedures positively and significantly influence employee remuneration; individual contribution positively influences employee remuneration; experiences and skills positively and significantly influence employee remuneration in Kenya’s Judiciary and intra-firm differentials positively and significantly influences employee remuneration in Kenya’s Judiciary. The study therefore recommends the Kenya’s judiciary to adopt policies that are fair. It is also important for the organization to adopt written policies and procedures; this is because written policies and procedures are essential to effective and efficient operations in an organization. Once the policies and procedures have been developed, it is important for the organization to communicate them to all employees; clear communication is important in creating good internal controls and outlining the expectations of all individuals involved in the operations.

Keywords: Organization’s Policies and Procedures, Employee Remuneration, Individual Contribution, Experience and Skills and Intra-Firm Differentials.