COMPENSATION MANAGEMENT AND EMPLOYEE PERFORMANCE IN THE HOSPITALITY INDUSTRY IN DELTA STATE
Abstract
This study investigated the effect of compensation management practices on employee performance in selected hospitality industries in Delta State, Nigeria. The study focused on three key components of compensation: bonuses, recognition, and basic pay. The objectives were to examine the effect of bonuses, assess the impact of recognition, and determine the influence of basic pay on employee performance. The research adopted a descriptive survey design, and data were collected through structured questionnaires administered to a sample of 100 employees across selected hospitality firms. Descriptive statistics and multiple regression analysis were used for data analysis. The findings revealed that bonuses, recognition, and basic pay each have significant positive effects on employee performance. The regression results showed that these compensation variables collectively explained 52.7% of the variation in employee performance (R² = 0.527), with all three predictors statistically significant (p < 0.05). The study concludes that effective compensation strategies—monetary and non-monetary—are essential for enhancing employee motivation, satisfaction, and productivity in the hospitality sector. It recommends the implementation of fair bonus structures, regular employee recognition, and timely, adequate basic pay to improve performance outcomes.
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