ABSTRACT

The study examined the effect of compensation on employees performance in Nigeria Universities; a study of Michael Okpara University of Agriculture, Umudike and University of Nigeria Nsukka. Five specific objectives and research questions guided the study. The study employed the use of description survey design with a population of 11040 comprising of MOUA U and UNN academic and non-academic staffs. The sample for the study was 726 which comprises of 345 and 381 randomly selected skiffs of MOUA U and UNN employees respectively. The instrument for the study was a researcher structured questionnaire. The research questions were answered using mean, standard deviation, percentage and frequency which are descriptive statistics, while the five hypotheses were tested using Z-test. The result shows that adequate salary payment is an undeniable factor in employee motivation and performance. The mean responses of MOUAU and UNN respondent used for this study show that the importance of employee 's recognition can never be overemphasized. Employee recognition when properly managed can have a significant effect on employee performance. The findings of this study shows a positive significant influence of medical insurance on employee productivity the mean responses were all above the benchmark of 3, 00, while the Z test result shows a Z-test value less than the Z-critical thus showing that the respondents of the two institution do not differ significantly in their mean responses. Finally, the challenges facing compensation in Nigeria Universities have been identified which includes. inadequate capital resources affect employee compensation, high inflation rate, in appropriate disbursement of employee funds, wrong deployment and other government policies are challenges faced by compensation of employee in Nigeria Universities. The Z-test analysis carried out on this result shows that there is no significant difference in the mean responses of MOUAU and UNN staff on the challenges of compensation in Nigeria Universities. The study among other things recommended that Nigeria government should redesign compensation strategies for public offices and make jobs more interesting and competitive,' ensuring the availability of the primary motivational factors identified by this dissertation as well as ensures they address intrinsic motivation of their employee. It is not only important to satisfying employee's needs but also very necessary to maintain performance and ensuring the long term survival of the Nigeria Universities