USE OF COMPENSATION PACKAGES FOR EMPLOYEES PERFORMANCE AND RETENTION IN NIGERIA
Need help with a related project topic or New topic? Send Us Your Topic
DOWNLOAD THE COMPLETE PROJECT MATERIAL
USE OF COMPENSATION PACKAGES FOR EMPLOYEES PERFORMANCE AND RETENTION IN NIGERIA
Chapter one
INTRODUCTION
1.1 Background for the Study
Salaries, bonuses, incentives, allowances, promotion, and recognition are some of the key characteristics of compensation packages that tend to keep employees satisfied with their jobs (Ezeh 2014).
All of these have a substantial impact on employee performance; nevertheless, to avoid employee misperception and controversy, the compensation system must be clearly explained to employees, together with job measurements, in order to drive the much-needed performance (Ezeh, 2014).
The preceding raises concerns about educators’ attitudes towards their work and their degrees of job satisfaction or discontent (Steyn 2007). Employee satisfaction and retention, as independent variables, can be controlled by allowances, compensation, incentives, fringe benefits, bonuses, and so on.
The purpose of this study is to assess the impact of remuneration packages on employee performance and retention in Nigerian private universities. (Bob, 2011). This includes assessing job values, developing and sustaining compensation structures, compensating for performance, competence, and skill, and offering employee benefits.
However, compensation administration involves more than just money. It also addresses non-monetary compensation that provides internal or extrinsic motivation for employees to improve their performance (Bob, 2011).
Compensation administration is focused with developing and implementing strategies and policies that attempt to compensate employees fairly, equally, and consistently in accordance with their contribution to the organisation (Armstrong, 2005).
The goal of compensation administration is to create policies and practices that would maximise the return on Naira spent in terms of attracting, satisfying, retaining, and possibly inspiring employees (Anyebe 2003).
Over time, it has been observed that some organisations’ employees are underpaid, or that some organisations lack effective compensation management programmes. This could be because employees are not promoted on time or their pay packages do not reflect the job they have done for the organisation (Fein, 2010).
This could sometimes be a purposeful attempt by management to frustrate employees, or it could be because management lacks the necessary managerial qualities to effectively administer a compensation administration programme (Dyer & Schwab 2004).
1.2 Statement of Problem
The ways in which employees are valued and compensated can have a significant impact on organisational effectiveness, and it is central to the employment relationship. Failure to establish adequate compensation schemes can have a substantial negative impact on staff performance and retention, as well as commitment and morale, resulting in a deterioration in organisational performance and effectiveness.
Many organisations suffer from high turnover rates and downturns because they do not provide compensation that may require little work (Aktar, Sachu, & Ali, 2012). Furthermore, while organisations are allocating more resources to improving organisational performance
there is widespread misunderstanding about how employee performance can improve when managers and human resource personnel use compensations on employees, the relationship that exists between the type of compensation and performance, and how effective they can be used in an organisation.
Most importantly, the high cost of monetary compensation forces companies to give to employees sparingly, because they fail to realise that simple offerings such as acknowledgment and open communication may be offered at any time, for very little expense, and can significantly improve employee performance.
This demonstrates that most organisations are still far from realising the value of non-monetary compensation or prizes, therefore they continue to provide monetary ones that are never adequate for their staff.
Although everyone requires money to attain even the most basic necessities of life, employees prefer the benefits of non-monetary presents and incentives for motivation at work.
1.3 Object of the Study
The primary goal of this research is to evaluate the usage of remuneration packages for employee performance and retention. Specifically, the study intends to:
1. Determine the influence of remuneration packages on employee performance and retention.
2. Determine the impact of utilising non-financial incentives to motivate staff performance.
3. Learn about the issues of rewarding people in an organisation.
1.4 Research question
1. Do remuneration packages have an impact on employee performance and retention?
2. What is the impact of utilising non-monetary incentives to motivate employee performance?
3. Are there any problems in rewarding personnel in an organisation?
1.5 Research Hypothesis.
Ho: pay packages have no impact on staff performance and retention.
Ho: There is no impact of remuneration packages on employee performance and retention.
Need help with a related project topic or New topic? Send Us Your Topic