The study examined the influence of compensation on workers performance. This is imperative because the success and the survival of any organization are determined by the way the workers are remunerated and rewarded. The rate at which employees’ turnover is increasing in organizations in Nigeria has become a thing of concern and it is obvious that the steps taken by the managements and stakeholders have not solved this problem. The evolving competition in the business environment in Nigeria evident from the increasing number of new firms has called for good formulation, administration and implementation of good compensation policies that would allow organizations to retain their best hands. In order to achieve the broad objective of this study, two hypotheses were raised for validation and a sample of fifty (50) workers of small and medium scale firms in Sagamu, Ogun State. The data for the analysis of the model were collected by the researcher through a well structure designed questionnaire. Regression analysis and sample independent student t-test techniques were adopted for the analysis and the result of the estimation was facilitated using the statistical package for social and management sciences (SPSS). The result of the analysis showed that compensation has an insignificant positive influence on employee performance. It was also found that there is a significant difference in performance among male and female workers based on compensation. Hence it was concluded that male workers performance is significantly higher than female workers based on compensation. The study concluded that compensation does not have a signifcant influences on workers performance. The study recommended that organizations must make sure that there is friendly and positive relationship between employers and employees in the organization. Management creates good and friendly working conditions that will aid employees’ performance. It also adds that organizations should ensure the provision of good welfare packages that will encourage and promote employees performance. Finally it recommended that, every organizations to constantly increase productivity, thereby necessitating the need to motivate employees through comprehensive compensation policies and friendly working conditions.
TABLE OF CONTENTS
CHAPTER ONE – INTRODUCTION
1.1 Background of the Study
1.2 Statement of the Problem
1.3 Objectives of the Study
1.4 Research Questions
1.5 Research Hypothesis
1.6 Scope of the Study
1.7 Significance of the Study
1.8 Scope and Plan of the Study
CHAPTER TWO – LITERATURE REVIEW
2.1 Conceptual Review
2.1.1 The Concept of Employee Compensation
2.1.2 Compensation Packages
2.1.3 Workers Performance
2.2 Theoretical Framework
2.2.1 Reinforcement and Expectancy Theories
2.2.2 Equity Theory
2.2.3 Agency Theory
2.3 Empirical Review
CHAPTER THREE – METHODOLOGY
3.1 Research Design
3.2 Population of the Study
3.3 Sample Size and Sampling method
3.4 Research Instrument
3.5 Validity and reliability of research Instrument
3.6 Procedure of Data Collection
3.7 Procedure of Data Analysis
CHAPTER FOUR – DATA PRESENTATION AND ANALYSIS
4.1 Introduction
4.2 Analysis of Demographic Data
4.3 Test of Hypotheses
4.4 Summary of Findings
CHAPTER FIVE – DISCUSSION, CONCLUSION, AND RECOMMENDATIONS
5.1 Discussion of Findings
5.2 Conclusion
5.3 Recommendations
REFERENCES
APPENDIX
