ABSTRACT

The objectives were Io: .determine the effect ofcompensation policy on employee performance, To ascertain the compensation packages available, To identify the challenges associated with compensation policy, To examine the relationship between compensation policy and employee performance in Tonimas group Aba. Primary and secondary sources were used. The use ofquestionnaire was employed to gather necessary and relevant data from the respondents. The methods were used in order to minimize the problems associated with data collection and to ensure that the results are visible and biasfree as expected. The data was analyzed using inferential and descriptive statistics. The descriptive statistics involvesfrequency table, likert scale while the hypotheses were tested using Analysis of Variance (ANOVA). The results ofthe findings show the f— statistics ofthere is effect ofcompensation policy on employee performance in Tonimas group, Aba (r = 0.920; p < 0.05); there is significant effect on compensation packages available in Tonimas group Aba (r = 0.935; p < 0.05); there are challenges associated with compensation policy in Tonimas group Aba (X2cat = 51.326 > X2Criticai = 7.815; p < 0.05); and there is relationship between compensation policy and employee performance in Tonimas group Aba (R - 0.920; p < 0.05). From the results ofthe study, it can be concluded that there is a significant relationship between good welfare service and employees performance. More so, there is a significant relationship between compensation policy and improved productivity. Aside from these, there is a significant relationship between compensation policy and retirement of staff. Conclusively, there is a positive significant relationship between compensation policy and employees performance