INFLUENCE OF CONTINGENT PAY AND VARIABLE PAY ON EMPLOYEES PERFORMANCE OF PUBLIC TERTIARY INSTITUTIONS

This study was to examine the influence of contingent pay and variable pay on employee performance in selected public universities. The study was anchored on social exchange theory. A cross sectional survey research design was employed for the study. Stratified sampling techniques were used to obtain a sample of 354 out of a target population of 4658 using Krejcie and Morgan (1970) formula. Data were collected using a structured questionnaire. The study used expert judgment method to determine content validity. Data were analyzed using Pearson’s product moment correlation coefficient at 5% level of significance. The findings revealed that there was a significant positive relationship existing between contingent pay and altruism and there was a significant positive relationship existing between variable pay and employee retention. The study concluded that contingent pay and variable pay has a significant positive relationship with employee performance variables (altruism and employee retention) in the public universities studied. The study recommended that universities administration should take into account the performance of people when granting pay system, as this will help them to motivate employees to try their best and stay longer in organizations.