Performance-Based Compensation and Employee Performance of the Selected First Banks in Enugu Metropolis Nigeria

Abstract

The Study focuses on performance-based compensation and employee performance of the selected first banks in Enugu metropolis Nigeria. Specifically the study aimed to pursue the following objectives To determine the effect of individual performance-based bonus on employee commitment of  the selected first banks in Enugu metropolis,  Nigeria,  ascertain the relationship between merit increase and job satisfaction of  the selected first banks in Enugu metropolis,  Nigeria,  determine the effect of piece-rate-scheme and manpower utilization  of  the selected first banks in Enugu metropolis,  Nigeria, ascertain the relationship between promotion-based incentive and career growth of  the selected first banks in Enugu metropolis,  Nigeria, . The study had a population size of (540) of employees of the selected first banks, and sample of 230 were derived using taro Yamane sample size determination formula. The total number of 230 copies of the questionnaire was distributed while 202 copies were properly filled/returned & used while 28 copies were not properly filled. Survey research design was adopted for the study. Four hypotheses were tested using Pearson product moment correlation coefficient and simple linear regression tool. The findings indicated Individual performance-based bonus had a significant effect on employee commitment of the selected first bank in Enugu metropolis, Nigeria (r = 0.909; F= 946.974; t = 30.773; p< 0.05). There was a positive relationship between merit increase and job satisfaction of the selected first bank in Enugu metropolis, Nigeria (r = 0.904; p< 0.05). Piece-rate-scheme had a significant effect on manpower utilization of the selected first bank in Enugu metropolis, Nigeria (r = 0.770; F = 291.045; t = 17.060; p< 0.05). There was a positive relationship between promotion-based incentive and career growth of the selected first bank in Enugu metropolis, Nigeria (r = 0.713; p < 0.05). The study recommends that First bank Plc. should always use individual performance based bonus to encourage and motivate employees to be committed to their job that will at same boost organizational goal at large.