COMPENSATION MANAGEMENT: A TOOL FOR ORGANIZATIONAL GROWTH AND EMPLOYEE PERFORMANCE

Abstract

This study examines compensation management as a tool for organizational growth and employee performance. The rationale behind the use of various components of compensation to employees’ is that motivated employees’ become satisfied in terms of fulfilling their wants; both financial and non-financial thus demonstrate improved performance. Failure to do so, employees’ will be tempted to leave the organization (Azasu, 2017). The objectives of the study are to examine the relationship between performance-based compensation with organizational growth and employee performance in organizations. Determine the relationship between equity-based compensation with organizational growth and employee performance in organizations. Investigate the relationship between competency- based compensation with organizational growth and performance in organizations. Survey research design was adopted. The study was carried out in Anambra State of Nigeria. The population of the work was 1648. The study investigated the relationship between compensation management as a tool for organizational growth and employee performance. The data used for the study was generated from primary and secondary sources. The data generated were tested using Pearson’s product moment correlation coefficient. The study investigates the relationship between compensation management with organizational growth and employee performance. The correlation result shows that there is a significant relationship between all the variables of compensation management with organizational growth and employee performance. The study concludes that compensation management had a positive significance relationship with organizational growth and employee performance. Recommendations were made that every organization should have performance-based compensation plans at program at every level of an organization. Equity-based compensation should be base on job out of individual contribution to the organization in other to ensure that employee put in their best performance and increase employee productivity and every organization should formulate competency-based compensation policy.