IMPACT OF SALARY INCREASE ON EMPLOYEES’ PERFORMANCE IN BENUE STATE TERTIARY INSTITUTIONS (A STUDY OF BENUE STATE UNIVERSITY, MAKURDI)

Abstract The study examine the impact of salary increase on employees performance in Benue State University Makurdi, it look at how poor and inconsistent pay has been identified as a source of frustration to some employees and has caused dissatisfaction, consequently lead to decline in their performance which eventually can endangers the survival of the institution, decrease motivation, increased absenteeism, grievance and turnover tensions in the institutions. The main objective of this study is to examine salary increase and its impacts on employee performance in Benue State University, Makurdi. The study adopt equity theory by Jay Stacey Adam (1965) The total population of the study is (1,500)) which comprises of Academic Staff non academic Staff of different carders, the sample size for this study is (316) through the use of Yaro Yemari formula, the instrument used for collecting data from the respondents is the questionnaire, and the data gathered from the respondent was analyzed using percentage analysis. The result shows that there is significant and positive relationship between variables of the study (r= 0.778, 0.565 and 0.865, P< 0.05). Also the findings revealed that salary increase has significant impact on employee effectiveness, employee teamwork and employee creativity in Benue State University Makurdi; employees are very capable of developing new ideas if given high salary. The study therefore, recommends that management of Benue State University Makurdi, should consider motivating their employee through introduction of new salary scheme; giving high salary will help employees to develop new ideas in discharging their duties. Also employees should be giving adequate freedom to make effective decision on their job.