EFFECT OF REWARD AND COMPENSATION ON EMPLOYEE PERFORMANCE AT MODERN SHELTER SYSTEMS AND SERVICES LIMITED, ABUJA
Abstract
The primary aim of this research is to assess the effect of compensation on Employee efficiency at
Modern Shelter Limited in Abuja, Nigeria. Modern Shelter Limited, Abuja, is the case study in the
investigation of the effect of compensation on Employee efficiency. The study aims to unravel the
complex dynamics between compensation packages and Employee efficiency within Modern
Shelter Limited, a real estate company situated in Abuja. Primary data for the study was gathered
directly from Modern Shelter Limited, and in the initial chapter, three hypotheses were formulated
to facilitate a comprehensive examination. These hypotheses were subsequently tested using
Regression analysis. Chapter two is dedicated to presenting a theoretical framework that
incorporates diverse perspectives from previous studies on the topic, encompassing evolving
theories related to Employee efficiency. Chapter three outlines the research design and
methodology employed in the study. To undertake a comprehensive study, four hypotheses were
developed in the first chapter. The linear regression method was used to examine the hypotheses.
To gather data from Modern Shelter Limited's employees, 77 questionnaires were administered,
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with closed-ended questions ensuring clarity and facilitating ease of analysis. The study focused on
employees in Abuja, Nigeria, with a total of 96 employees (50 males and 46 females) spanning
various job levels. The sample size, determined using the Taro Yamani formula, suggested 77
respondents, and the study opted for a representative sample of 77 participants across different job
levels and experience. In Chapter 4, The examination of the respondents' responses, the application
of linear regression to the data, and the interpretation of the results were covered The data was
analyzed using SPSS software, revealing noteworthy findings. The first analysis established a
significant relationship between salaries and Employee efficiency. This underscores the idea that
when employees receive adequate compensation in the form of salaries, it has a positive influence
on their work output. The second analysis identified a significant relationship between bonuses and
Employee efficiency. This suggests that the presence of bonuses have a direct impact on the day-
to-day work performance of employees. The third analysis demonstrated a significant relationship
between promotion and Employee efficiency.
This implies that the prospect of career advancement and progression within the organization is a
motivating factor that positively influences how employees approach their roles. In summary, the
study highlights the multifaceted nature of the relationship between compensation and Employee
efficiency. While salaries, bonuses,
promotions, and rewards each contribute uniquely to the overall motivational landscape, they
collectively influence employees' dedication, commitment, and performance within the
organization
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