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FINANCIAL REWARD AND PERFORMANCE OF HEALTH WORKERS IN GOVERNMENT HOSPITALS IN UGANDA: A CASE OF KIRUDDU HOSPITAL, KAMPALA DISTRICT, UGANDA

The study examined the effect of financial rewards on performance of health workers in Government Hospitals in
Uganda. A case of Kiruddu hospital. The study was anchored on two specific objectives, namely: to examine the
effect of direct financial rewards on the performance of health workers at Kiruddu hospital and to examine the
effect of indirect financial rewards on the performance of health workers at Kiruddu hospital. A cross-sectional
research design using a convergent parallel mixed methods approach was used to answer the study questions. A
sample size of 169 respondents was considered for the study, 155 respondents participated, giving a response rate
of 92%. The study established that financial reward practices (direct financial rewards and indirect financial
rewards) have a statistically significant relationship and significantly positively affect performance of health
workers at Kiruddu Hospital. The study found out salary at Kiruddu Hospital is paid promptly and on time and
that Kiruddu Hospital offers a wide range of indirect financial rewards to health workers ranging from health
insurance, housing and transport allowances. However, health workers are not satisfied with their salaries because
it does not match with either their level of education nor their work load, earn less compared to their colleagues
in private hospital, It was further discovered that the idea of bonuses is new to health workers and working
overtime does not qualify them for anything and allowances paid to health workers at Kiruddu Hospital are not
attractive. It was also revealed that health insurance is only given to few family members of health workers,
leaving out majority of the family members from benefiting, paid training opportunities at Kiruddu hospital are
discriminative hence not all staffs benefit from them . The study recommends that; Top leadership of Kiruddu
Hospital and the Ministry of Health to review the existing direct financial reward systems by benchmarking with
private hospitals and other Government Hospitals in the region, introduce performance based pay system that
clearly and directly links direct financial rewards to performance, increase salaries of health workers annually,
prioritize recruitment of more health workers and equip all Government hospital with all sorts of medicine so that
patients are not asked to buy anything. Finally, there is need for Government to revisit the insurance policy for all
health workers to make sure it pays for medical bills for all dependents of health workers and increase transport
and housing allowances given to health workers to make it more competitive.

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