Compensation Packages and Organizational Sustainability of Nigerian National Petroleum Company Limited, 2014 – 2025.

The impact of compensation packages on organisations has continued to draw attention of organizational policy makers and scholars. This study examined the relationship between compensation packages and organizational sustainability in the Nigerian National Petroleum Company Limited (NNPCL) between 2014 to 2025. The study was instituted to achieve a specific objective. The Resource-Based View (RBV) was adopted as the analytical guide. The descriptive research design was employed as an approach. The study population comprised 615 managerial, permanent, and contract staff of the Port Harcourt, Warri, and Kaduna refineries. A sample size of 242 respondents was determined using the Taro Yamane formula, while Bowley’s proportional allocation and stratified random sampling techniques were employed. Primary data were collected using a structured questionnaire validated by experts, while the instrument yielded a Cronbach’s alpha coefficient of 0.87, confirming its reliability. Out of the 242 questionnaires administered, 220 valid copies were retrieved and analysed using the Statistical Package for the Social Sciences (SPSS) version 27, while Spearman Rank Order Correlation was employed to test the hypothesis at the 0.05 level of significance. The findings revealed that respondents agreed that competitive salaries, performance-based incentives, equitable reward systems, and comprehensive monetary and non-monetary benefits significantly enhanced employee motivation, commitment, retention, and productivity, thereby promoting organizational sustainability. The hypothesis test further revealed a strong positive and statistically significant relationship between compensation packages and organizational sustainability (r = 0.733, p = 0.000), leading to the rejection of the null hypothesis. The study concluded that competitive and equitable compensation packages are essential for improving workforce stability, reducing employee turnover, enhancing productivity, and ensuring the long-term sustainability of NNPCL. The study recommended that NNPCL should periodically review its compensation structure to ensure alignment with industry standards and employee expectations.

Compensation, Package, Organization, Sustainability, Resource-Based.

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