The Effect of Compensation on Employee Performance in Nigeria Civil Service: A Study of Rive

The Effect of Compensation on Employee Performance in Nigeria Civil Service: A Study of River … 9

Sometimes the government will argue that they are short of money due to a fall in the oil price therefore, workers should be patient and wait with empty stomach pending when the price of oil increases. Even the issue of minimum wage that government claims they will be paying the civil servants is forthcoming. In 2016, most state government owed their workers for good six months arguing that it is as a result of a fall in the oil price. The president of the Nigerian Labour Congress, Aliyu Wahid on Monday 22 August, 2016 after meeting with its executives on the issue of non-payment of salaries to workers across the country pointed out that since most states are owing workers for five to six months, they have decided to embark on “no pay no work policy” which is the same thing with “no work no pay” on the side of the government.One question that needs to answer is that “is a worker entitled to his/her wages?” If the answer is yes, then federal and state government should endeavour to ensure that workers are being compensated for their effort.

Objectives of the Study

The aim of this study is to examine the effect of compensation on employee performance in the Rivers State Board of Internal Revenue Service. However, the specific objective is to:

Examine the association between direct compensation and employee performance in the Rivers State Board of Internal Revenue Service.

Examine the association between indirect compensation and employee performance in the Rivers State Board of Internal Revenue Service.

Research Hypotheses

From the specific objectives, the following null hypotheses were formulated.

HO1: Direct compensation does not significantly associate with employee performance in the Rivers State Board of Internal Revenue Service.

 

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