EFFECT OF COMPENSATION ON EMPLOYEE PERFORMANCE (A CASE STUDY OF FEDERAL MEDICAL CENTRE BIDA)
Abstract
This study focused on effect of compensation on employee productivity in Federal Medical Centre Bida. The study adopted a survey design which includes the distribution of a well-designed research instrument to 347 respondents. Primary data was collected by use of both structured and unstructured questions across the strata and secondary data was gathered from various sources. Responses were analyzed using both descriptive and graphical techniques. It was observed that compensation have impact on entrepreneurial willingness to discharging the responsibility. That wages and salaries influence organization compensation system. It was also shown that compensation increase workers’ productivity and commitment in the organization. That compensation have impact on employees moral and motivation. The study recommends that FMC Bida management should conduct periodic reviews of salary structures and allowances to ensure they align with inflation, cost of living, and workload demands. Competitive compensation will not only retain current staff but also attract skilled professionals. In addition to basic salaries, management should introduce a performance-based reward system where employees who exceed expectations are recognized through bonuses, promotions, or awards. This will encourage employees to work harder and be more innovative.
Keywords: - Employee, Compensation, Organization, Productivity, and Performance
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