Valuing employee performance through compensation management practice in Nigerian banks

Abstract The study’s general objective is to determine the influence of compensation management practices on the employee performance of Banks. The main research instrument used for the study was a questionnaire. A cross-sectional research design was employed. The population of the study comprises 700 employees of selected Banks, while a sample size of 255 was derived using Taro Yamani's formula but 253 were returned and used for analysis. The reliability of the questionnaire showed a Cronbach Alpha value above 0.8 for all the constructs. Simple regression was used to test the hypotheses with the aid of Stata version 13 software. Correlation analysis showed that the constructs were positively correlated. Single regression was conducted to the formulated hypotheses and post-regression diagnostics tests were carried out to certify the regression model. The study finds that: Recognition has a significant effect on employees' performance in banks (Coef. = 0.587, p = 0.000). Pay has a significant effect on employees' performance in selected banks in Delta State (Coef. = 0.551, p = 0.000). The study concluded that fringe benefit is one of the ways to promote and retain an employee in the organization and management should be able to sense the active employees and create ways of appreciating the employee's effort put into action in the organization. The study provided that recognition is a form of compensation that boosts employee performance in the banking sector.