EFFECT OF COMPENSATION ON EMPLOYEE PERFORMANCE AT BILAAD REALTY ESTATE, ABUJA, NIGERIA

Abstract

In modern business practices, compensation serves as a crucial tool for attracting, retaining, and motivating employees. This study explores the effect of compensation on employee performance, focusing on salaries, bonuses, promotions, and rewards as proxies for compensation.  Taro Yamani formula was used to determine the sample size of 77 respondents from the total population.  Data collected were presented, interpreted and analyzed  using descriptive statistics. Statistical Package for Social Sciences (SPSS) version 2.1 was  employed to analyze the data obtained. Through a thorough analysis, it was found that these components of compensation exhibit a positive relationship with employee performance. Specifically, competitive and satisfactory salary packages are associated with enhanced employee output. Bonuses are found to contribute positively to employee performance, indicating that their presence leads to improved productivity. Similarly, promotions demonstrate a positive relationship with employee performance, suggesting that career advancement opportunities enhance employee dedication and effectiveness. Furthermore, a well-structured reward system is shown to positively impact employee performance, emphasizing the importance of recognizing and incentivizing employee contributions. These findings hold significant implications for organizations, including Bilaad Realty estate Abuja, highlighting the need for effective compensation strategies to motivate and retain a high-performing workforce. By understanding the nuanced relationships between specific compensation components and employee performance, organizations can tailor their approaches to achieve overall organizational success.