Executive Compensation Management and Productivity Among Indigenous Small and Medium Enterprises (SMEs) in Nigeria

Abstract

The study was designed to evaluate the effect of executive compensation management on productivity among indigenous SMEs in Nigeria and make recommendations. Compensation is a primary motivator for employees. People look for jobs that not only suit their talents and creativity, but compensate them both in terms of salary and other benefits – accordingly. Traditional methods of compensation that involves set pay levels with regular annual increases are no longer fashionable. As businesses change their focus, their approach to compensation must change as well. This is necessary because traditional compensation methods may hold an enterprise back from adequately compensating its best employees. With about 17.3m SMEs in Nigeria good compensation management will provide the platform for executive manpower development in Nigeria. The survey research design was used for the study. Data generated were analyzed using the X2 statistics method. It was empirically found that executive compensation management correlates positively to productivity. Eleven (11) recommendations were made based on the findings of this study.