IMPACT OF FINANCIAL REWARD ON EMPLOYEES JOB PERFORMANCE IN NIGERIAN POST-CONSOLIDATED BANKS
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Date
2017-04-17
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Uniosun International Journal of Business Administration (UIJBA)
Abstract
Human resources are the pivot of organization effectiveness and the greatest asset that an organization can possess. The banking reform in Nigeria has definitely posed some challenges to management of the newly consolidated banks and the reward system. This paper assessed the relationship of direct financial rewards and employee performance in Nigeria post-Consolidated banks. The population of study covered 19 banks quoted in the Nigerian stock exchange market out of which four banks were chosen as sample size using convenience sampling techniques. The stud employed the use of correlation analysis as a parametric statistic to validate hypothesis in the study. Finding of the study revealed that r=0.340 or 34.0%, indicating that direct financial rewards contribute 34.0% to employee performance, thus establishing a significant relationship between direct financial reward and employee performance (at 0.05 significant level). The study then concluded that since there exist a weak positive relationship between financial reward and employee performance, other forms of rewards like non-financial reward should be factored into the total reward package of the employees. This will assist the banking industry to be able to attract and retain highly qualified employees in today competitive Nigeria banking environment. The study therefore recommends that the reward system in the Nigerian banking industry must be functional in order to define relationship between pay, performance and job satisfaction which will reflect in organizational productivity
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Keywords
Banking reforms,, consolidated banks,, direct financial rewards, reward system,, compensation