THE EFFECT OF COMPENSATION ON EMPLOYEE PERFORMANCE IN NIGERIA

THE EFFECT OF COMPENSATION ON EMPLOYEE PERFORMANCE IN NIGERIA

CIVIL SERVICE: A STUDY OF RIVERS STATE BOARD OF INTERNAL REVENUE SERVICE

Okwudili, B. E.*, Edeh Friday Ogbu**

*Department of Industrial Relations & Personnel Management College of Management Sciences, Michael Okpara University of Agriculture, Umudike, Nigeria.

**Department of Industrial Relations & Personnel Management College of Management Sciences, Michael Okpara University of Agriculture, Umudike, Nigeria.

Email: edeh.ogbu@gmail.com

Abstract The present study examines the effect of compensation on employee performance in Rivers State Board of Internal Revenue. It adopted a cross-sectional research survey. Target population comprises employees of Rivers State Board of Internal Revenue Service. Accessible population for this study is 45. Sample size is 40 using Krejcie and Morgan (1970) sample size determination table. Only 32 questionnaires were completed and returned. Convenience sampling technique was adopted. Spearman Rank Order Correlation Coefficient was used with the aid of Statistical Package for Social Sciences (SPSS) version 20.0. The finding of this study revealed that direct compensation is positively associated with employee performance. Secondly, indirect compensation was found to significantly associate with employee performance. The study concludes that civil service should see compensation as a tool that will enhance employee performance. The study recommended that civil service commission should employ qualified human resource personnel that will oversee the affairs of employee compensation as this will remove the bottleneck surrounding the non-implementation of employees’ compensation. Secondly, allowances due to workers should be promptly paid to them to avoid ineffectiveness in the civil service.

Keywords: Compensation, Direct Compensation, Indirect Compensation, Extrinsic Rewards, Intrinsic Rewards, Employee Performance

 

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