Effect of Compensation Administration on Employee’s Performance of
Private Universities in North Central Nigeria
OGBONNAYA SIMEON CHIZOBA, CROSS OGOHI DANIEL, SAJI GEORGE
Department of Business Administration, Faculty of Management Sciences,
Nile University of Nigeria,
Plot 681, Cadastral Zone C-OO Research & Institution Area Nigeria, Airport Rd, Jabi 900001, Abuja,
NIGERIA
Abstract: - Compensation has a significant impact on employee job satisfaction and performance. The impression
of being paid what one is worth predicts job satisfactions. However, it is unclear how compensation affects
employee performance, which may have led to many disagreements. This concentrate subsequently looked to lay
out the impacts of remuneration on workers' exhibition in private universities in north-central, Nigeria. The study's
objective was to investigate how compensation administration affects employee performance at private universities
in the central part of Nigeria. The review utilized an engaging exploration plan. Defined irregular examining was
utilized to choose an example size of 1290 representatives drawn from the objective populace of 1312. Reactions
were gathered through the organization of a poll. The legitimacy and unwavering quality of the survey were
improved through a pilot concentrate on completed in chosen private universities. Both face and content legitimacy
were utilized to guarantee the legitimacy of the instruments. SPSS was used to classify and code the collected data
before tabulating it. Means frequency tables, percentages, and descriptive statistics were used to analyze the
qualitative data. Competitive salaries were established, and the study came to the conclusion that incentive plans
motivate workers to work at a higher level of efficiency and productivity, as well as increase productivity and
reduce employee turnover. It can work on the work process and work techniques, The review suggests that the
college organization can impact Representative execution by conveying to the workers that they esteem their
commitment and furthermore reassuring representative cooperation in the dynamic course of the pay organization
framework at the universities. At the point when representatives feel that their viewpoints are esteemed at their
employers, they will generally show unwaveringness and responsibility because of the feeling of belongingness
and trust from the administration.
Key-Words: - Compensation, compensation administration, employee performance, direct financial compensation,
private universities.
Received: May 19, 2023. Revised: March 4, 2024. Accepted: March 21, 2024. Published: April 19, 2024.
1 Introduction
The present associations are working in an extremely
unique and exceptionally serious climate. They need
to be able to quickly respond to the changing needs
and demands of every client and stakeholder in order
to remain relevant in the market. Pay organization is
one of the techniques involved by associations for
drawing in and holding reasonable workers, as well
as, working with them to work on their presentation
through inspiration and to follow business
regulations and guideline, [1].
Accordingly, representatives are compensated for
their commitment to the association and the three
goals of the remuneration organization framework
are to draw in great specialists from the work market;
commit them to the association, hold the best
representatives the association as of now has, and
rouse representatives to work harder and to assist the
association with accomplishing high efficiency in its
essential objectives. Taking into account this,
workers are viewed as quite possibly of the main
resource in the association; subsequently, they ought
to be expertly and superbly made due, [2].
One of the apparatuses that the organization is
utilizing to tempt, keep, and energize individuals or
representatives is pay and advantages organization.
By and large, the pay framework is joined by a few
activities both from the view point of the company
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Ogbonnaya Simeon Chizoba,
Cross Ogohi Daniel, Saji George
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and the person. It has prompted strains for the
company. Representatives can be
redressed/compensated in two fundamental ways for
the gig they do. They can be compensated monetarily
and non-monetarily, [3]. Monetary prizes are those
prizes which are communicated in crude money like
expansion in compensations, compensation, and
other monetary motivators. Representatives can
likewise be compensated utilizing non-monetary
means like acknowledgment, preparing programs in
type of short courses, classes, and studios.
In Canada, as per [4], organizations will more
often than not start remuneration procedures in the
parts of direct monetary pay as well as advantages
that rouses and eventually further develops
execution. The monetary remuneration, for example,
wages, compensations, or execution related
installments is obviously stuck to in numerous
associations to hold workers and outmaneuver their
adversaries. In Africa with explicit regard for
Nigeria, greater part of representatives who change
starting with one work then onto the next move
because of tracking down better compensation, [5].
The creators demonstrate that in excess seven out of
ten individuals in Nigeria that are over 70% of
representatives who are keen on changing their
manager typically gave the explanation of low pay in
their current work that makes them look for new
business climate.
A few creators like [6], are of the assessment that
workers possibly stay in an association to give their
best when they accept the compensation cycle is
equivalent to their feedback. This has comprised a
high pace of workers leaving their bosses, at times
getting away from their city or the country just to
track down greener fields. Clearly, in the country,
numerous associations actually wrestle with issues
connecting with legitimate remuneration of
representatives to build their presentation norms.
[7], tracked down that a company's capacity to
draw in, persuade, and hold representatives by
offering cutthroat compensations and fitting prizes is
connected to firm execution and development.
According to [8], and numerous other studies, there
is a non-significant correlation between executive
compensation and performance. According to a study
by [9], a combination of financial and non-financial
rewards boosts company performance.
Accordingly, concentrates on exploring the
connection between pay organization variables and
worker execution have uncovered to some degree
unique outcomes. In the radiance of these
discoveries, this study features the requirement for a
more profound examination of the relationship
between compensation administration and employee
performance with particular reference to selected
private universities in North-central Nigeria.
The major aim of this research is to explore the
impact of compensation administration on
employee’s performance in Private Universities in
North Central Nigeria in respect of Job Satisfaction
and employee productivity.
2 Literature Review
2.1 Compensation Administration
Pay organization is an essential part of human asset
the board. It comprises of fundamental components,
for example, individuals, cycles, decisions, and
necessary guidelines to accomplish the targets of any
association in the space of giving sufficient
compensation for the commitments of workers in the
association. From this, it implies that remuneration
organization covers every one of the exercises that
are engaged with figuring out what is to be given to a
worker, who is to give it, the way things are to be
given, and when it is to be given. Thus, it envelops
the entirety of all that is engaged with perceiving the
presentation of a representative, [10].
Remuneration organisations from the above
relationship can likewise be worried about the plan
and execution of procedures and approaches
equipped towards compensating individuals decently,
fairly, and reliably as per the upsides of the
association, [11]. Concurring with the view
communicated by [12], [13], augmented the extent of
pay organization by expressing that it comprises of
ways of thinking, techniques, approaches, core
values, practices, designs, and methodology which
are concocted and figured out how to give and keep
up with proper sorts and levels of pay, benefits and
different types of remuneration.
As a result, [14], based on the aforementioned
opinions of the authors came to conclusion that
compensation and rewards are used to determine
employees' performance in order to determine
whether or not they are paid appropriately. [15],
characterizes remuneration organization as a segment
of human asset the executives that spotlights on
arranging, sorting out, and controlling the immediate
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installments to workers consequently to the work
they put in the association. Pay incorporates direct
structures, for example, fundamental compensation,
merit pay, and motivator pay. The association
concern itself in remuneration organization
determined to keep an effective work-force,
evenhanded compensation, and consistence with
administrative specialists of the public authority.
Employees frequently become dissatisfied with
their benefits and compensation when they begin to
believe they are an essential part of the business. At
long last, when workers feel they are a predominant
piece of an association, they regularly accept that the
association owes them substantially more than
whatever they are now getting. As of now, pay is
basically the paste which holds numerous dis-
fulfilled workers set up.
In addition, this does not imply that there is a
positive correlation between higher compensation
and higher performance, [16]. Instead, employers and
business owners must establish organizations in
which high-performance results in competitive
compensation for all employees. Without
remunerations, an association is sowing seeds for
high turnover, low efficiency, and long-haul
disappointment. In any case, remunerate workers that
are not performing burden an association with higher
finance cost and urges unfortunate entertainers to
remain while deterring the representatives that blow
away assumptions, [17].
To give pay, models foresee the advancement of
remuneration frameworks that orchestrate
compensation so a laborer's anticipated utility
improves with noticed efficiency. These prizes can
take numerous different structures, including acclaim
from managers and colleagues, unsaid commitments
of future advancement prospects, healthy identity
regard that come from prevalent achievement and
recognition, and current and future cash rewards
related to performance, [18].
Monetary trained professionals, while seeing that
nonmonetary prizes for execution can be critical, will
commonly focus in monetary awards since
individuals will substitute nonmonetary for cash
related rewards and considering the way that money
tends to a summarized ensure on resources and is
thusly generally preferred over an identical dollar-
regard portion in kind, [19].
2.2 Employee Performance
Repaying representatives is related with the
inspiration of the labor force of association for better
execution. Notwithstanding, what type and blend of
remuneration methodologies to utilize is difficult for
the associations. A few examinations emphatically
affect the representative's wellbeing and work place
security. One of the variables looked for increment
representative's commitment to the work place,
which is the vital component in the work execution
among representatives, [3], [7], [12].
The reasoning behind the utilization of different
parts of pay to workers is that roused representatives
become fulfilled as far as satisfying their needs, both
monetary and non-monetary accordingly show
further developed execution. Inability to do as such,
workers will be enticed to leave the association, [20].
On one hand, representatives favor getting natural
awards concerning acclaim and acknowledgment for
specific work achievements, while different workers
are content with outward compensation as far as pay
rates, reward and impetus proposed to representatives
to upgrade their presentation, [21].
Any business's market performance is directly
correlated with the output of its employees. In this
way, the most pivotal element that emphatically
impacts the inspiration of the colleagues is the wages
that the association pays them. Therefore, it is
imperative that different organizations create
different organizations must create a comprehensive
compensation practice that correctly rewards the
efforts of their employees in a bid to increase their
productivity, [22].
An affiliation's compensation practice
incorporates arranging and directing a pay structure
which contemplates both the show and the ongoing
money related conditions. Furthermore, there are real
responsibilities that all of the affiliations ought to
meet while cultivating their compensation strategies.
Then again, an association lays out execution
objectives for every representative and the
association all in all determined to diminish
squander, expanding client esteem, and expanding
productivity. Representative execution might allude
to work quality, proficiency, and viability on an
individual level. For instance, execution of a sales
rep could include completing a specific piece of calls
to likely leads in a solitary hour with a particular
level of those calls changing over into shut calls,
[22].
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Basically, execution for a creation expert
incorporates meeting creation necessities for hourly
outcome and thing quality. As a general rule,
individual execution has direct effect in the entire
gathering and progressive execution. The presence of
a delegate that performs at disgraceful extends the
probability of various specialists hurrying up or
having the work patched up. Neglecting to live up to
assumptions agents also effect on buyer reliability
and could provoke loss of business for a really long
time expecting the organization to fails to determine
the secret issues. To shield the business and lift
worker inspiration, associations are committed to
further develop representative execution consistently.
At the same time, affiliations require solid execution
improvement intends to meet their show targets
totally, [23].
The game plan will zero in on perceiving the
principal factors that hold laborers back from
meeting their presentation suspicions. Hence, the
arrangement will proceed to figure out proper
measures, based on the identified factors, to work on
the general execution of the association, [22].
Moreover, the arrangement ought to likewise set an
unmistakable guide on how the distinguished
advances will be carried out too how to accomplish
and upgrade supportability with respect to
representative execution. Through and through,
representative execution stays a basic part of the
association as it straightforwardly decides the level of
outcome of the association.
2.3 Compensation Administration and
Employees Performance
Compensation is the remuneration received by an
employee in return for their contribution to the
organization. It is an organized practice that involves
balancing the work-employee relation by providing
monetary and non-monetary benefits to employees.
Compensation includes payments such as bonuses,
profit sharing, overtime pay, recognition rewards,
and sales commission. Compensation weighs
significantly in job performance, [24].
An organization's performance management
system begins long before the employee reports for
her first day on the job. Performance management
starts with discussing the job duties, responsibilities,
and expectations with candidates during the
recruitment and selection process. Ideally, a job
posting should contain a summary of the job, the
qualifications the company is looking for, and what
the company expects from employees in that
particular role, [25]. Consequently, when a recruiter
hands a job applicant the full job description,
essentially saying, "This is what we expect from the
person we hire to fill this position and if you accept
this, we can move forward with the selection
process".
Employees today are not willing to work only for
the cash alone, they expect 'extra'. This extra is
known as employee benefits. Also known as fringe
benefits, Employee benefits are non-financial form of
compensation offered in addition to cash salary to
enrich workers’ lives. Employee benefits as a whole
have no direct effect on employee performance,
however, inadequate benefits do contribute to low
satisfaction level and increase truancy and turnover
in workers, [26].
So you would need to painstakingly plan your
arrangement for assistance. Your package might
include giving each worker a cell phone, taking them
to a seminar or training workshop, giving them a few
days off each month, etc. While settling on the
advantages bundle, do think about the related
expenses. A very much planned pay and advantages
plan assists with drawing in, propel and hold ability
in an association. A company or employee will
benefit in the following ways from a well-designed
compensation and benefits plan:
Job Satisfaction: Representatives would be content
with their positions and couldn't want anything more
than to work for such an association on the off
chance that they get fair remunerations in return of
their administrations.
Motivation: We as a whole have various types of
requirements, [27]. Employees work for companies
that pay more because some of us want money. Some
worth accomplishment more than cash, they would
connect themselves with firms which offer more
prominent possibilities of advancement, learning, and
improvement. A remuneration plan that hits laborers'
requirements is bound to propel them to act in the
ideal manner.
Absenteeism is low: at the point when specialist’s
remunerations are enough made due, representatives
will have the energy and excitement to be customary
working as opposed to with nothing to do at
home.Albeit some will quite often remain inactive at
work place likewise, however when they are dealt
with well, they will offer incentive for it, [28].
Low Turnover: representatives cannot work for some
other association for however long they are dealt
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with well and get their pay brilliantly and measure.
So, there will be a low pace of representative
turnover.
2.4 Theoretical Framework
Theoretical framework is the ‘blueprint’ or guide for
research, [29]. It is a structure in view of a current
hypothesis in a field of request that is connected as
well as reflects the speculation of a review. An
outline is frequently 'acquired' by the specialist to
construct his/her own home or exploration request. It
is the basis upon which research is built.
Consequently, with the end goal of this review, the
Herzberg Two-Component hypothesis and Vroom
Hope hypothesis of work inspiration were embraced
in this study since they make sense of and best suit
the reason or objective for which this study is secured
upon.
Our comprehension of how monetary and non-
monetary incentives can motivate employees to
perform in an organizational setting is facilitated by
reviewing these motivational theories. Fredrick
Herzberg Two-Variable hypothesis of representative
inspiration is one of the broadly talked about need-
based speculations of worker inspiration, [30].
As per [31], Herzberg guaranteed that individuals
have two arrangements of fundamental requirements,
one zeroing in on endurance and one more zeroing in
on self-awareness. Herzberg fought that elements in
the working environment that fulfill endurance
requirements or cleanliness factors, can't give work
satisfaction however just forestall disappointment.
These cleanliness factors are pay and security,
working circumstances, relational relationship,
organization strategy, and oversight. The self-
improvement factors he considered as inspirations
are accomplishment, acknowledgment, the actual
work, obligation, progression, and development.
Herzberg contended that the inspiration factors
make sensations of occupation satisfaction yet their
nonattendance won't be guaranteed to prompt work
disappointment. According to the Herzberg two-
factor model, management must provide not only
hygiene factors to prevent dissatisfaction but also
motivators (intrinsic factors) for the job itself to have
potential for motivation. The argument that non-
monetary incentives can be just as effective as
monetary incentives in motivating employees is
supported by the motivation-hygiene theory.
Hope hypothesis was first proposed by Victor
Vroom who states that inspiration is a cognizant-
decision process, [31]. As indicated by this
hypothesis, individuals decide to invest their energy
into exercises that they accept they can perform and
that will deliver wanted results. Hope hypothesis
contends that choices about which exercises to take
part in depend on the blend of three arrangements of
convictions: anticipation, instrumentality, and
valence. Hope is worried about apparent connection
between how much exertion a worker places in and
the subsequent result. Instrumentality alludes to the
degree to which the results of the specialist's
presentation, whenever saw, brings about a specific
outcome. Valence implies the degree to which a
worker esteems a specific result.
The ramifications of this hypothesis are that
assuming a representative accepts that regardless of
how hard he functions he won't ever arrive at the
fundamental degree of execution, then, at that point,
his inspiration will presumably be low in regard of
hope. As respects instrumentality, the worker will be
roused provided that his conduct brings about some
particular outcome. Assuming he works additional
hours, he hopes to be boosted while for valence, in
the event that if a representative is compensated, the
motivations should be something he esteems. An
inexorably huge number of associations have made
sense of how impetuses, especially cash could be
connected to wanted conduct and execution results to
further develop viability, [32].
Over time, it has been widely acknowledged that
monetary incentives can have a significant impact on
behavior. Early inspiration speculations, for example,
anticipation hypothesis have exhibited instinctive
allure and its fundamental parts have gotten exact
help. Throughout the long term, authoritative
exploration has exhibited that representatives are
roused by something other than by money related
motivators alone. In any case, numerous associations
depend entirely on monetary motivators. There are an
entire host of elective inspirations that can impact
worker conduct and improve inspiration, [33].
3 Methodology
According to this constructivism perspective which is
quantitatively disposed, review research
configuration will be embraced in this review; this is
on the grounds that the idea of the review requires
direct data for examination and thus sufficient
philosophical establishing. Information will be
gathered from the chose private universities in north
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Ogbonnaya Simeon Chizoba,
Cross Ogohi Daniel, Saji George
E-ISSN: 2224-2899
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Volume 21, 2024
central Nigeria as the review required firsthand data
from the review firms.
The specialist will utilize the review research
configuration in this review. Review research
permitted the analyst to have firsthand data over the
information that is gathered and utilized for
examination in this review. Overview research
configuration is considered fitting, effective, and
adaptable in light of the fact that it empowers the
analyst to limit predisposition and amplify
unwavering quality of information that is gathered
and further utilized for examination. Review research
includes the utilization of essential instruments like
poll, meetings and perceptions. This study will use
the instrument of five-point Likert Scale poll. The
survey things depend on the examination questions
which likewise concur with the exploration goals and
examination speculations.
The review people comprises of showing staff of
the review associations/universities. Baze University,
Nile University of Nigeria, Veritas University, the
African university for science and technology,
Bingham University, Salem University, University of
Mkar, Landmark University, Al-hikmah University,
Summit University, and Anan University are the
eleven private universities in north central Nigeria
included in the study organizations.
The analyst will utilize the non-likelihood
examining technique; Thus, non-likelihood
examining depicts a gathering of inspecting methods
that help scientists to pick units from a craving
concentrate on populace. Therefore, judgmental
(purposive) non-probability sampling methods will
be used by the researcher in the study. The specialist
utilized essential wellsprings of information
assortment. This assisted with expanding the
substance of the work. The essential wellspring of
information assortment is survey. The duplicates of
the survey will be conveyed to eleven (11) private
universities in North central Nigeria under study with
help from a portion of the staff of the review firms.
In this study, only the quantitative data collection
methods were utilized for the instruments. In this
study, the scientist will utilize five focuses Likert
scale surveys. Consequently, the review embraced
the utilization of a poll as the instrument of
information assortment.
In this examination, a combination of elucidating
and inferential technique was used. Demographic and
quantitative data will be presented using descriptive
methods. In contrast, inferential is used for
hypothesis testing and organizational clarity. Clear
insights are helpful to enquire in a superior
comprehension of information however are not
suitable to give valuable data on research
circumstances and various connections between
numerous inert factors, [34].
In contrast, inferential statistics is a statistical
analysis tool that focuses on the interference and
evaluation of sample-based information regarding the
level of confidence in the population, [35]. It is
helpful to test speculations and calculated models
about the connections in the populace based on
estimations made on examples, [36].
3.1 Model Specification
This study adopted the model specified by [37], in
their study on effect of compensation administration
on employee Performance in Higher Educational
Institutions with modifications as thus;
EP = f(CA) (i)
EP= f(EP, JS) (ii)
CA= f(DFC) (iii)
Model 1
JS = f (DFC)
EP = β0+ β1DFC
Model 2
EP = f (DFC)
JS = β0+ β1DFCWhere:
CA = Compensation Administration
EP = Employee performance
JS = Job satisfaction
EP = employee productivity
DFC = Direct financial compensation
3.2 Test of Significance
The null hypothesis will be rejected if p-value < 0.05,
hence the alternative hypotheses will be accepted.
Also, if 0.05 > p-value, the hypothesis null will be
agreed upon and the alternative hypothesis will be
declined.
4 Data Analysis
4.1 Overview of the Data Collection
According to the population's sample determination
formula, a total of one thousand three hundred and
twelve (1312) people were required to respond to the
survey. The surveys were properly circulated yet
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Ogbonnaya Simeon Chizoba,
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E-ISSN: 2224-2899
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1,000 200 and ninety (1290) polls were accurately
filled and returned. Making around 98% reaction rate
for the poll organization. [34], states that base
exactness of 10% is satisfactory. Thus the
investigation was completed in view of the quantity
of surveys gathered.
After information assortment, the information is
coded, introduced, and furthermore dissected. The
analyst originally introduced tables that are produced
from the PC as the result. Descriptive research;
frequencies and percentages were gathered to explain
characteristics of the research in the organizations.
Pearson correlation coefficient was used to
determine how the variables under study relates with
each other, while regression analysis was used to
determine the effect on employee’s performance of
eleven selected private universities in North central
Nigeria.
4.2 Research Questions Analysis
Table 1 presents the results of the effect of direct
financial compensation on Job satisfaction in Private
Universities in North Central Nigeria.
Table 1. Research Question 1: Does direct financial compensation have effect on Job satisfaction in Private
Universities in North Central Nigeria?
Sn
Research
Question
Item
SA (%)
A (%)
UD (%)
D (%)
SD (%)
n (%)
Fx
Mean
1
RQ1: Direct
financial
compensation
and Job
satisfaction
Do you agree that the basic pay is
sufficient to make one desire working
for this University
544
(37%)
493
(29.2%)
87
(13.2%)
59
(4.6%)
107
(16.2%)
1290
(100%)
2420
3.66
2
The salary and remuneration paid reflect
the skills, competence, and the work
output offered.
410(
31.8%)
525
(35.1%)
111
(16.8%)
67
(5.1%)
91
(7%)
1290
(100%)
2446
3.70
3
Direct financial compensation have
effect on employee Job satisfaction in
your University
549
(37.6%)
546
(37.3%)
87
(11.7%)
28
(2.8%)
80
(10.9%)
1290
(100%)
2563
3.88
4
Direct financial plays a primary role in
determining the overall performance of
employees.
579
(44.8%)
569
(44.1%)
52
(4%)
54
(4.1%)
42
(3.2%)
1290
(100%)
2722
4.12
5
Direct financial compensation does not
have effect on employee Job satisfaction
in your University
618
(43.8%)
555
(38.6%)
60
(9.1%)
14
(2.2%)
43
(6.6%)
1290
(100%)
2716
4.11
Sectional Mean
3.89
Source: Researchers compilation, 2023
Table 2 shows the results of the effect of direct
financial compensation on Employee productivity in
Private Universities in North Central Nigeria.
Table 2. Research Question 2: How does direct financial compensation influence Employee productivity in Private
Universities in North Central Nigeria?
Sn
Research
Question
Item
SA (%)
A (%)
UD (%)
D (%)
SD (%)
n (%)
Fx
Mean
1
RQ 2: Direct
financial
compensation
and Employee
Productivity
The attraction of direct financial
compensation is a major driver of
employee productivity in your
university
619
(43.9%)
519
(33.2%)
89
(13.5%)
10
(0.7%)
53
(4.1%)
1290
(100%)
2666
4.03
2
Direct financial compensation
Influence employee productivity in
Private Universities
530
(41%)
631
(48.6%)
62
(4.8%)
10
(0.7%)
57
(4.4%)
1290
(100%)
2642
4.00
3
Subjecting employees to various
compensation strategies motivates
them and consequently a replica to
an improved performance
477
(26.8%)
603
(41.5%)
94
(14.3%)
33
(5%)
83
(12.6%)
1290
(100%)
2412
3.65
Sectional Mean
3.89
Source: Researchers compilation,2023
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From the research survey on the item “Do you
agree that the basic pay is sufficient to make one
desire working for this University”, it was observed
that 544 (37%) of the respondents strongly agreed,
493(29.2%) of the respondents agreed, 87 (13.2%) of
the respondents are not sure/ undetermined, 59 (4.6%)
of the participants disagreed, while 107 (16.2%) of the
participants strongly disagreed. The general mean
response for this item is 3.66, that form agreed on the
likert scale and it implies that the respondents agreed
that the basic pay is sufficient to make one desire
working for the University.
From the examination review on the thing 2 "The
compensation and compensation paid mirror the
abilities, capability and the work yield offered", it was
seen that 410 (31.8%) of the respondents
unequivocally concurred 525(35.1%) of the
respondents concurred, 111(16.8%) of the respondents
are don't know/unsure, 67 (5.1%) of the members
deviated, while 91 (7%) of the members firmly
conflicted. The general mean reaction for this thing is
3.70 that structure settled on the likert scale and it
suggests that the respondents concurred that
compensation and compensation paid mirror the
abilities, capability, and the work yield advertised.
From the examination overview on the thing
3"Direct monetary pay affects worker Occupation
satisfaction in your College", it was seen that 549
(37.6%) of the respondents emphatically concurred,
546(37.3%) of the respondents concurred, 87(11.7%)
of the respondents are don't know/dubious, 28 (2.8%)
of the members deviated, while 80 (10.9%) of the
members unequivocally conflicted. The general mean
reaction for this thing is 3.88 which address settled on
the likertscale and it infers that the respondents
concurred that immediate monetary remuneration
significantly affects representative Work satisfaction
From the examination overview on the thing 4
"Direct monetary assumes an essential part in
deciding the general exhibition of representatives". it
was seen that 579(44.8%) of the members
unequivocally concurred, 569(44.1%) of the
respondents concurred, 52(4%) of the members didn’t
know/were unsure, 54 (4.1%) of the members
dissented, while 42 (6.4%) of the members firmly
conflicted. The general mean reaction for this thing is
4.12 that depict settled on the Likert scale and it
suggests that the respondents concurred that direct
monetary assumes an essential part in deciding the
general exhibition of representatives.
From the examination overview on thing the 5
"Direct monetary pay doesn't have effect on employee
Job satisfaction in your university ". It was seen
that 618(43.8%) of the members unequivocally
concurred, 555(38.6%) of the members concurred,
60(9.1%) of the respondents are don't know/unsure,
14 (2.2%) of the members deviated, while 43 (6.6%)
of the members firmly conflicted. The general mean
reaction for this thing is 4.11 which address settled on
the likert scale and it suggests that the members
concurred Direct monetary remuneration doesn't
significantly affect representative Work satisfaction.
The sectional mean for all things is 3.89 that
depict settled on the likert scale, and this shows that
the respondents concurred with the previously
mentioned assertions about Direct monetary
remuneration and Occupation satisfaction. A few
creators, like [36], are of the assessment that direct
financial compensation have significant effect on Job
satisfaction in organisations.
From the examination study on the thing 1 "The
fascination of direct monetary remuneration is a
significant driver of representative efficiency in your
college" it was seen that 619(43.9%) the respondents
emphatically concurred 519(33.2%) of the
respondents concurred, 89(13.5%) of the respondents
are don't know/dubious, 10 (0.7%) of the members
deviated, while 53 (4.1%) of the members
unequivocally conflicted. The general mean reaction
for this thing is 4.03 that depict settled on the Likert
scale and it suggests that the respondents concurred
that immediate monetary pay is a significant driver of
representative efficiency.
From the exploration review on the thing 2
"Direct monetary pay impact Representative
efficiency in Private Universities". It was seen that
530(41%) of the respondents unequivocally concurred
631(48.6%) of the respondents concurred, 62(4.8%)
of the respondents don't know/dubious, 10 (0.7%) of
the respondents deviated, while 57 (4.4%) of the
respondents strongly disagreed. The general mean
reaction for this thing is 4.00 that address settled on
the Likert scale and it suggests that the respondents
concurred that immediate monetary pay impact
Representative efficiency.
From the examination review on the thing 3
"Exposing worker to different pay systems propels
them and thusly an imitation to a better exhibition" it
was seen that 477(26.8%) of the members
emphatically concurred 603(41.5%) of the members
concurred, 94(14.3%) of the respondents are don't
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DOI: 10.37394/23207.2024.21.82
Ogbonnaya Simeon Chizoba,
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E-ISSN: 2224-2899
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Volume 21, 2024
know/unsure, 33(5%) of the respondents deviated,
while 83(12.6%) of the respondents unequivocally
clashed.
Table 3. Correlational Analysis of Study Variables
Correlations
DFC
EP
JS
EMPER
DFC
R
1
EP
R
-0.036
1
JS
R
-0.004
0.047
1
EMPER
R
0.061
.258**
-.117**
1
N
1290
1290
1290
1290
*. Correlation is significant at the 0.05 level (2-tailed).
**. Correlation is significant at the 0.01 level (2-tailed).
Key: Variable Definition
DFC
Direct financial
compensation
EP
Employee productivity
JS
Job satisfaction
EMPER
Employee Performance
Source: Researcher’s compilation, 2023
According to the Likert scale, the general mean
response for this question is 3.65, which indicates that
exposing employees to various compensation
strategies inspires them to perform better.
According to the Likert scale, the sectional mean
for all items is 3.89, indicating that respondents
agreed with the aforementioned statements regarding
direct financial compensation and employee
productivity. This is in line with [36], that direct
financial compensation have significant influence on
employee productivity in organizations.
Table 3 portrays the correlation coefficient
(Compensation Administration and employee’s
performance) for the extent of relationship measure
within the variables recognized in this study. The
value of correlation ranges from -1 to +1, where 0.75 -
0.99 indicates a very strong connection between the
intersecting variables, 0.5 - 0.74 implies strong
relationship within the intersecting variables, 0.35-
0.49 indicates a weak association among variables as
presented above
4.3 Test of Hypothesis
Regression model analytical techniques were adopted
to test the six null hypotheses so as to provide answers
to the research questions and achieve the research
objectives. Table 4 presents the regression model
coefficients and shows how direct financial
compensation, affect dependent variable job
satisfaction and shows how they affect dependent
variable, employee productivity.
Table 4. Model Summary
Model
R
R
Square
Adjusted R
Square
Std Error of
the Estimate
1.
.398a
.158
.155
1.06145
a. Predictors: (Constant), direct financial compensation
As seen from Table 4, the R-square of 15.8%
shows the joint explanatory strength of compensation
administration variable (direct financial
compensation) and employee performance (job
satisfaction). Leaving about 84% impact to other
extraneous variables not featured in the model.
Table 5. Regression ANOVAa
ANOVAa
a. Dependent Variable: job satisfaction
b. Predictors: (Constant), direct financial compensation
Also, from the Table 5 of the regression model
ANOVA. The F-test p-value is observed to be 0.000
which is less than 0.05 (5%) significant level and thus
simplifies that all the compensation administration
variables are jointly having a significant impact on
employee job satisfaction.
Table 6. Regression Model Coefficientsa
Coefficients
Model
Unstandardi
zed
Coefficients
B
Std.
Err
or
Standardi
zed
Coefficien
ts
t
Sig
Constant
1.476
.16
7
8.82
8
.00
0
Direct
financial
compensati
on
.044
.03
3
.048
1.32
9
.18
4
a. Dependent Variable: job satisfaction
Note: Regression Model coefficients is used to interpret
Research Hypotheses 1.
Model
Sum of
Squares
df
Mean
Square
F
Sig.
Regression
144.157
3
48.052
42.650
.000b
Residual
766.140
680
1.127
Total
910.297
683
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4.3.1 Research Hypothesis One
H01: There is no significant impact of direct
financial compensation and Job satisfaction
in Private Universities in North Central
Nigeria.
The primary variable is utilized to enact the
principal invalid speculation - H01: There is no
critical effect of direct monetary pay and Job
satisfaction in Private Universities in North Central
Nigeria. The variable direct monetary pay has a
relapse coefficient 0.044. This suggests that the direct
monetary pay decidedly affects the job satisfaction of
the chose private universities in North-central Nigeria.
Hence, proposing that, with an expansion in direct
monetary remuneration of the chose private
universities in North-central Nigeria could result to
around 0.044-unit expansion in job satisfaction of the
foundations as seen by the administration. Besides,
direct monetary pay has a p-worth of 0.184 which is
more prominent than 0.05 (5%) level of importance in
this way suggests that the coefficient isn't measurably
critical. Consequently, the invalid speculation "There
is no critical effect of direct monetary pay and Job
satisfaction in Private Universities in North Central
Nigeria" isn't dismissed. We thusly infer that the
relationship saw between the direct monetary
remuneration and job satisfaction is not generalisable
although a positive relationship is observed.
Table 7. Model Summary
Model
R
R
Square
Adjusted R
Square
Std. Error of the
Estimate
1
.437a
.191
.188
1.17099
a. Predictors: (Constant), direct financial compensation
As seen from Table 7, the R-square of 19.1%
shows the joint explanatory strength of the
compensation administration variables (direct
financial compensation). Leaving about 81% impact
to other extraneous variables not featured in the
model.
Table 8. Regression ANOVAa
Model
Sum of
Squares
df
Mean
Square
F
Sig.
Regression
220.458
3
73.486
53.591
.000b
Residual
932.435
680
1.371
Total
1152.893
683
a. Dependent Variable: employee productivity
b. Predictors: (Constant), direct financial compensation
Also, from the Table 8 of the regression model
ANOVA. The F-test p-value is observed to be 0.000
that less than 0.05 (5%) significance level and thus
implies that all the compensation administration
variables are jointly having a significant impact on
employee productivity.
Table 9. Regression Model Coefficientsa
Model
Unstandardiz
ed
coefficients B
Std.
Erro
r
Standardiz
ed
Coefficient
s Beta
t
Sig
.
Constant
1.367
.184
7.41
3
.00
0
direct
financial
compensati
on
.077
.037
.074
2.09
1
.03
7
a. Dependent Variable: employee productivity
Note; Regression Model coefficients is used to interpret
Research hypotheses 2.
4.3.2 Research Hypothesis Two
H02: Direct financial compensation does not
significantly impact on Employee productivity in
Private Universities in North Central Nigeria.
The second variable serves as the trigger for the
activation of the second null hypothesis, H04: direct
monetary pay doesn't fundamentally affect on Worker
efficiency in Private Universities in North Central
Nigeria. The regression coefficient for the variable
direct financial compensation is 0.077. This suggests
that the direct monetary remuneration decidedly
affects the Worker efficiency of the Private
Universities in North Central Nigeria. Thus implying
that an increase in private universities' direct financial
compensation could result in approximately 0.077 unit
increases in employee productivity as perceived by
employees. Moreover, direct monetary remuneration
has a p-worth of 0.037 which is under 0.05 (5%) level
of importance hence suggests that the coefficient is
genuinely huge. Consequently, the null hypothesis
states that "direct financial compensation does not
significantly impact Employee productivity in Private
Universities in North Central Nigeria” is rejected. We
therefore, conclude that the relationship observed
between the direct financial compensation and
Employee productivity is generalisable.
4.4 Discussion of Findings
Two (2) unmistakable exact outcomes have risen up
out of the approval of speculations above. In the first
place, it was found that there is no huge connection
between direct monetary pay and Job satisfaction in
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Ogbonnaya Simeon Chizoba,
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Private Universities in North Central Nigeria, despite
the fact that it has positive relationship as displayed in
Table 6. This finding supports with the review did by
[23], researched the effect of direct monetary pay in
the presentation of representatives in client assistance
organizations in the Republic of Ghana. The
investigation discovered that prize aspects affect
employees‟ execution. Specifically, they observed
that compensation, execution reward,
acknowledgment, and recognition are the apparatuses
that administration can use to persuade representatives
for them to perform successfully and proficiently. In
this way, laborers reward bundle matters a great deal
and ought to be a worry of both the businesses and
workers.
The concentrate in this manner recommends that
for the chose Private Universities in North Central
Nigeria to really and effectively accomplish job
satisfaction they need to decisively consolidate direct
monetary pay to remunerate their representatives
The second speculation from this concentrate likewise
shows that immediate monetary remuneration
altogether and emphatically relates with direct
monetary pay and worker efficiency in the Private
Universities in North Central Nigeria. In his study
titled "Compensation and Performance," [38], found
that pay decisions have an impact on a wide range of
HR value chain activities, such as employee detention,
development, and recruitment. Additionally, pay is a
significant component for the inspiration and
satisfaction of representatives.
According to [39], 6 out of 10 laborers showed
that pay in sort of pay was fundamental to their
general business execution, putting it just three rate
communities under conditions that use aptitudes and
cutoff points and essentially a lone rate point under
capable strength in 2018. It is moreover conveyed
pay, nearby business security, has reliably stayed on
the outline of the best five development satisfaction
factors commonly vital for workers.
The findings then suggest that private universities
in the central and northern parts of Nigeria ought to
make certain that their staff members receive adequate
compensation in order to boost organizational
performance by increasing employee productivity.
5 Conclusion
Therefore, the findings of the study demonstrate that
direct compensation; affect worker execution of
private universities in north-central, Nigeria.
Concerning direct pay, the respondents concur that the
universities organization endeavors to further develop
worker’s immediate pay have impacted the
representative execution. The examination presumes
that there was a beneficial outcome of direct
remuneration on worker execution of private
universities in North-central, Nigeria. The concentrate
likewise finishes up, a cutthroat compensation bundle
can further develop representative inspiration,
decrease worker turnover, and increment efficiency.
Businesses incur a significant cost from employee
turnover, which can be reduced with motivation.
While pay isn't the main inspiring component for
representatives, it can assist laborers with feeling
esteemed by the business. Pay plans propel laborers
for higher effectiveness and efficiency. It can further
develop the work process and work techniques. Costs
associated with supervision can be reduced when
employees are committed. The prizes for the most part
connect with the accomplishment of specific
objectives, either private, group or hierarchical, or a
blend of these. The review presumes that
representatives become more drawn in when their
presentation is appropriately perceived by their
manager. Through remunerations, the association can
guarantee that the job satisfaction level of your
employee increases, hence would result to better
employee retention
6 Recommendations
Based on the findings, the researcher recommended
thus:
i. Worker execution can be affected by the universities
organization by conveying to the representatives that
they esteem their commitment and furthermore
reassuring worker cooperation in the dynamic course
of the pay organization framework at the association.
At the point when representatives feel that their
viewpoints are esteemed at the associations they work,
they will generally show dependability and
responsibility because of the feeling of belongingness
and trust from the administration.
ii. According to the findings, a company's ability to
attract and keep top talent depends on offering a
competitive salary. Salary ranges that are consistent
with all job descriptions ought to be established by the
organization. To decide pay ranges, research and
dissect the cutthroat compensation ranges for all
significant positions in view of geographic area.
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Contribution of Individual Authors to the Creation
of a Scientific Article (Ghostwriting Policy)
The authors equally contributed in the present
research, at all stages from the formulation of the
problem to the final findings and solution.
Sources of Funding for Research Presented in a
Scientific Article or Scientific Article Itself
No funding was received for conducting this study.
Conflict of Interest
The authors have no conflicts of interest to declare.
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