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
: pwainaina@corporatestaffing.co.ke
: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
bonusesin the past, but we will not be
doingso 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
employeesonly
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.
Accountingand Finance
Salesand 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.
Determinedby a performance-based year-end bonus to
selectedemployees
Amount is determined by individuals’ contribution to
departmental and/or overallcompanys performance
The size of the monetary bonus awarded is determined
bythe company’s management discretion. No known
criteriafor 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
employeesmorale and loyalties to the company
Prevailingeconomic 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.

End of year employee rewards survey 2015 Kenya

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