Compensation, Employee and Organisational performance in Guarantee Trust Bank Plc: A Secondary Data Analysis.

Abstract

In this paper, we moved away from the questionnaire and interview data gathering approach to testing the fundamental assumption of human resource management (HRM) practices as they impact both the employee and organizational performance using financial data. We argued that performance is better appraised “a posteriori”. Thus, we extracted financial data from the annual financial report s from the year 2002 to 2017 and the Pearson Correlation method was used for analysis. The analysis reveals that there is a strong positive and statistically significant relationship between, (i) compensation and employee performance (0.815); (ii) compensation and organizational performance (0.666); and (iii) between employee performance and organizational performance (0.903). However, the findings should be treated with caution as these relationships do not imply a causal one. Importantly, the results strengthen the fundamental role of HRM practice of compensation as one of the important drivers of employee performance that culminates into the overall improved organizational performance.Keywords: Compensation, organization performance, employee performance, HRM Practices