The Effect of Financial Compensation on Employees’ Performance in Achievers University, Owo, Ondo State

To remain in today’s turbulence and competitive business environment, organization must strive hard to retain its employee, boost their morale and offer them good compensation and incentives in order to keep them on the job and enhance organizational performance. The challenges of poor implementation of financial compensation policies have been the major issues militating against turnover rate of employees in Achievers University, Owo. The study therefore, examined the effect of financial of compensation on employee performance in Achievers University Owo, Ondo State, Nigeria. The specific objectives of the study were (i) to investigate the effect of pension scheme on employees’ performance in Achievers University, Owo (ii) to what extent does salaries and wages influences employee’s performance in Achievers University, Owo and (iii) to examine the relationship between overtime and excess workload and performance of the employees in Achievers University, Owo. The population of the study consisted all staff of Achievers University, Owo. The total staff strength was 491. A sample size of 220 respondents was arrived at using the Taro Yamane (1967) formula. A total of 220 copies of questionnaire were administered on the respondents. The study found that (i) the calculated T-score of 0.74, which falls within the acceptance region ±1.96, implied that salaries and wages have significant influence on employees’ performance in Achievers University, Owo. (ii) the calculated T-score of 2.90, which was outside the acceptance region ±1.96, implied that overtime and excess work-load have significant influence on employees’ performance in Achievers University, Owo. The study concluded that a good financial compensation will improve significantly, employees’ performance in Achievers University, Owo. It recommended among others, that management of Achievers University, Owo, should formulate and structure clear pension scheme that will boost the morale of employees and hence, their performances on job.