THE USE OF COMPENSATION PACKAGES IN NIGERIA FOR employee PERFORMANCE AND RETENTION
1.1 Context of the Investigation
In addition to pay, bonuses, incentives, allowances, promotion, and recognition, compensation packages typically include other factors that tend to keep people satisfied with their jobs (Ezeh, 2014). All of these have a substantial impact on employee performance; nevertheless, to avoid misperception and disagreement among employees, the compensation system must be properly stated to employees in conjunction with job measurement, which will drive the much-required performance among employees (Ezeh, 2014). Concerns are raised about the attitudes of educators toward their jobs and their degrees of job satisfaction or discontentment (Steyn 2007). Other variables, such as allowances, compensation, incentives, fringe benefits, bonus, etc., might influence employee retention and satisfaction as independent variables. The purpose of this study is to examine the impact of remuneration packages on employee performance and retention in Nigerian Private universities. (Bob, 2011). This includes measuring job values, developing and maintaining pay structures, compensating for performance, competence, and skill, as well as offering employee benefits. Nonetheless, compensation administration is not limited to monetary matters. It also focuses on non-monetary compensation that provides intrinsic or extrinsic motivation for employees to improve their performance (Bob, 2011).
Compensation Administration involves the establishment and implementation of plans and policies designed to compensate individuals fairly, equally, and consistently in accordance with their contribution to the business (Armstrong, 2005). In terms of attracting, satisfying, maintaining, and possibly inspiring personnel, the objective of compensation administration is to design policies and practices that yield the most return per Naira invested (Anyebe, 2003). Historically, it has been the case in some firms that their personnel are undercompensated or that they lack effective compensation management processes. This may be the result of a delayed promotion or compensation that is not commensurate with the employee's contributions to the organization (Fein, 2010). Occasionally, this may be a purposeful attempt by management to frustrate employees, or it may indicate that management lacks the administrative skills necessary to execute a pay administration program efficiently (Dyer, & Schwab 2004).
1.2 Explanation of the Issue
At the core of the employment relationship are the ways in which employees are valued and compensated, which can have a significant impact on the organization's effectiveness. Failure to establish adequate incentive structures can have a substantial negative impact on the performance and retention of personnel, as well as their dedication and morale, resulting in a reduction in organizational effectiveness. Numerous firms endure significant turnover rates and declines as a result of their failure to provide pay that may require less work (Aktar, Sachu & Ali, 2012). Moreover, despite the fact that organizations are devoting more resources to enhancing organizational performance, there is widespread ignorance regarding how employee performance could increase when managers and human resource personnel use compensations on employees, the relationship between the type of compensation and performance, and how effectively they can be used within an organization. Moreover, the high cost of monetary compensation forces companies to give to employees sparingly, because they fail to recognize that little offerings such as acknowledgment and open communication may be made at any time for very little cost and can significantly improve employee performance. This demonstrates that the majority of firms have yet to recognize the significance of non-financial pay or awards; as a result, they continue to provide employees with monetary remuneration that is never sufficient. Employees prefer non-monetary presents and incentives for motivation in the workplace, despite the fact that money is required to purchase even the most basic necessities.
1.3 Purpose of the Research
The primary objective of this study is to explore the utilization of compensation packages in relation to employee performance and retention. Specifically, the study aims to:
Determine how employee performance and retention are affected by remuneration packages.
Determine the impact of utilizing non-monetary incentives to motivate staff performance.
Determine the difficulties of employee compensation in an organization.
1.4 Investigational Issue
Is there a relationship between employee performance and retention and salary packages?
What impact does providing non-financial incentives to promote employee performance have?
Are there any difficulties associated with rewarding staff in a business?
1.5 hypothesis for Research
There is no relationship between employee performance and retention and salary packages.
There is no connection between employee performance and retention and salary packages.
THE USE OF COMPENSATION PACKAGES IN NIGERIA FOR EMPLOYEE PERFORMANCE AND RETENTION