Compensation Management and Employee Performance of Mortgage Banks in Abuja
Simon Ojonimi Ogwu *
University of Port Harcourt, Rivers State, Nigeria.
Emeka J. Okereke
University of Port Harcourt, Rivers State, Nigeria.
Mgbataogu Ifeanyi
University of Port Harcourt, Rivers State, Nigeria.
*Author to whom correspondence should be addressed.
Abstract
We studied how compensation management impact on employee performance, considering mortgage banks that operate in Abuja, Nigeria. Seven of these banks were picked in this cross-sectional study. One hundred and seventy-one (171) staff of these 7 banks were selected randomly to provide opinion of this investigation. We used questionnaire to solicit for these opinions which are crucial for our study. We subjected the perception of all 171 employees to descriptive and inferential analysis, after recoding them. To capture compensation management, we opt for performance-based, seniority-based and skill-based pay, correlating them with our measure of employee performance (employee commitment and creativity). We showed that employees will be inclined to commit to working for the banks when compensation is performance-, seniority-, and skill-based. Compensation on the basis of performance, seniority, and skill will increase the creativity level of employees. Our result speaks to compensation management determining employee performance in the banks. We recommend, therefore, that banks ensure the practice of employee compensation is performance-, skill- and seniority-based and should make the climb up the corporate ladder flexible.
Keywords: Compensation management, employee performance, performance-based, skill-based, seniority-based