International Journal of Research and Innovation in Social Science (IJRISS) | Volume VI, Issue VI, June 2022 | ISSN 2454–6186
Osho, Olayinka Kayode
Department Of Management, Faculty of Business Studies, Ignatius Ajuru University of Education, Rumuolumeni, Port Harcourt.
Abstract: The issue of compensation have been neglected by many organizations, thus leading to both high rate of turnover and a decrease in both organizational and employees performance. The objective of this study is to examine the impact of human resource management compensation on employee’s performance. The population of this study comprises of 170 employees from twenty one (21) Pension Fund Management Organizations in Rivers State. The study used a well-structured questionnaire to obtained data from 110 business respondents. Statistical package for social sciences (SPSS) version 23.0 was utilized for data analysis. Findings from the study disclosed that there is a positive significant relationship between compensation and employee’s performance.it was recommended that to improve employee’s efficiency and general performance in the work place, Pension fund management organizations should ensure adequate compensation is being giving to staff, this will serve as a motivation to improve performance.
Keywords: compensation, employees, performance
I. INTRODUCTION
One of the most important considerations in every business is the human resource. This is due to the important function it plays in other organizational resources, since they enable the organization achieve its lofty goals by leveraging other resources. Organizational performance is improved by the combination of these resources. Effective compensation is one of the most strategic human resource management tools that has been used to boost productivity inside the firm. Compensation is determined by a variety of things. While some businesses pay more attention to the following elements than others, virtually all employ some type of analysis to determine remuneration. They seek to reward employees properly in order to promote positive morale, strong motivation, and minimal attrition. Compensation is an important tool for attracting customers and retention of talented employees that are dedicated to their responsibilities within the firm (Chiekezie et al., 2017). Compensation management aims to promote the achievement of business goals through attracting, motivating and retaining hard working employees (Shieh, 2018; Petera, 2016). Compensation management is a crucial component of the overall management of an organization. It refers to the process by which employees are remunerated for their input at the workplace (Khan 2012). However, it is also worthy to note that without effectual compensation and performance of employees’ organizational performance cannot be enhanced.