IMPACT OF COMPENSATION ON EMPLOYEE’S PERFORMANCE: A STUDY OF NASCO FOODS

Abstract

A pilot study prior to this study, revealed that compensation is an integral part of Nasco group of companies, in that packages have been instituted to enhance employees moral thereby enhancing their performance which should ripple on the general performance of the company yet, employees are observed not to perform as expected. This therefore inform this study. This study adopt a survey research design. The population of the study covers all staff of Nasco group of company but will be restricted to Nasco food Strategic Business Unit (SBU) which totals 84. The instrument employed for this study was structured questionnaire. The binary regression method was adopted to find out the linear relationship between Compensation and Employees Performance. The study showed that Bonuses has a significant relationship with Employee’s performance. As employees are constantly given bonuses, they are stimulated to perform. The bonuses accrued to employees is a major stimulant of performance in organizations. Secondly, it was observed from the analysis that commission has a significant relationship with Employee’s performance. The study thus recommends that in other to stimulate performance among its employees, Nasco Foods should maintain and keep reviewing there Bonus packages. Secondly, the management of Nasco Foods and SBUs of Nasco group should maintain and improve on their current commission package