Compensation and Employee Performance of Bank in Port Harcourt, Nigeria

International Journal of Research and Innovation in Social Science (IJRISS) | Volume III, Issue V, May 2019 | ISSN 2454–6186

Compensation and Employee Performance of Bank in Port Harcourt, Nigeria

Fubara, Ibim Favour

Department of Management, Faculty of Management Sciences, Rivers State University, Port Harcourt, Nigeria

Abstract:-This study was designed to examine the relationship between compensation and Employee Performance of banks operating in Port Harcourt. Among the statement of the problem is the need to explore how banks could leverage on compensation as a strategy to remain competitive in business by retaining high performing staff. This is at a time when there exist other lucrative industries both locally and globally capable of absorbing such staff, especially with the ongoing advocacy and support programmes aimed at encouraging creative young minds to become their own boss. It was based on this backdrop that the reinforcement and expectation theory was adopted as the theoretical foundation for this study. Then utilized a cross sectional survey design as the research methodology as structured questionnaire was distributed to one hundred and forty nine staff of five selected banks and one hundred and twenty were retrieved from the field. With the aid of mean, standard deviation and Pearson Product Correlation Coefficient were utilized as the analysis technique, aided by statistical package for social sciences. Findings from the research revealed that compensation relates positively and significantly with employee performance, as it has significant impact on job satisfaction, employee productivity and employee efficiency. Therefore, it was recommended that compensation is a strategic tool management can leverage on to enhance employee performance and it should be positively utilized as a veritable tool to improve motivation to work better.

Keywords: Compensation, employee performance, job satisfaction, employee productivity, employee efficiency.

I. INTRODUCTION

Generally, firms should rely on strategy as one of the means to remaining competitive. Although, there are lots of strategies which could be leveraged on by firms, but compensation being one of such, have been perceived to have direct impact on the employee performance. So for an industry like the banking sector amidst other industries like the oil and gas, telecommunication, entrepreneurship and agriculture, which are available for grab by high flying employees both locally and globally, it becomes necessary for the banking sector to consider its compensation plan for their employees, seeing that the industry plays a pivotal role in ensuring proper distribution of funds within the economy and as such require performing staff to accomplish this all important responsibility to the Nigerian economy.

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