Research Wage Bill and Financial Performance

Wage Bill and Financial Performance

Wage Bill and Financial Performance

Examining the Financial Performance of Faith-Based Hospitals in Kenya

This descriptive survey was conducted and comprised of six Level 5 faith-based hospitals, 30 staff members in the Finance departments, and six HR Managers. The findings showed that salaries affected the financial performance of the faith-based hospitals to some extent. It was also found that the majority of the hospitals were providing a wage bill of between 36-40%. This is fairly good because it is close to the internationally accepted wage bill percentage standard of 35%. The study recommends hospital wage bills should not exceed 40% of the total revenue because it may lead to delayed payment of salaries or compromise some expenditures due to financial pressure.