COMPENSATION SYSTEM AND EMPLOYEES PERFORMANCE: A STUDY OF NON-ACADEMICS STAFF OF UNIVERSITIES

Abstract

This study explores the relationship between rewards system and employee performance in a public university in Nigeria. The study used descriptive research design. A sample size of 175 respondents was selected to participate in the study out of the population of 1745 employees using stratified sampling technique. Data from both primary and secondary sources were used for the study. Primary data was gathered from employees of Lagos State University with the help of the structured questionnaire to gather necessary and relevant data from the respondents. The data was analyzed using the Statistical Package for Social Sciences (SPSS). It was interpreted in frequencies, percentages and spearman’s rank correlations. The findings were presented using tables and figures. From the results of the tested hypothesis., It shows a strong positive correlation between the dependent and independent variable with the r value of 0.701 which implies that there is a significant relationship between compensation system and employees performance. Therefore, it can be concluded that there is a significant relationship between good compensation system and employees performance. It also demonstrated that a shift from a very narrow based reward structure involving only pay, to one which incorporates other rewards, both intrinsic and extrinsic, which are valued by the modern day workforce such as recognition and empowerment play an essential part in enhancing employee performance. The study recommends that to have a satisfactory and productive workforce, the management of Lagos State University should design and fashion out an effective compensation that is commensurate with the contribution of its non-academic staff as well as in agreement with what is obtainable by other employees in the country.