JOURNAL OF LIAONING TECHNICAL UNIVERSITY

INFLUENCE OF COMPENSATION PACKAGES ON THE PERFORMANCE OF PERSONNEL IN FUNDED HIGHER INSTITUTIONS

Adebowale, Israel Olukayode

Abstract

This study explores the impact of compensation packages, with a specific focus on salary and allowances, on staff performance within selected Higher Institutions in Ekiti State. The research employs regression analysis to investigate the relationships between these components and staff performance, providing insights into the critical role they play in higher education institutions. The findings reveal that salary exerts a significant positive influence on staff performance, with a coefficient of 0.780 and a p-value of 0.000. This underscores the importance of competitive salaries in motivating and enhancing the performance of university staff. These results align with established theories and prior research, emphasizing the value of competitive compensation in attracting, retaining, and inspiring employees. Similarly, allowances were found to significantly impact staff performance, supported by a coefficient of 0.832 and a p-value of 0.000. The study reaffirms the well-established principle that supplementary benefits and allowances contribute to employee job satisfaction and, consequently, heightened job performance. These findings carry practical implications for higher education institutions. To foster a motivated, committed, and high-performing workforce, institutions are encouraged to establish and maintain competitive salary structures, regularly review and adjust allowances, and implement performance-linked incentives. Additionally, a systematic performance appraisal system, ongoing professional development programs, and initiatives to enhance employee engagement are recommended.By implementing these recommendations, higher Institutions can optimize their human resource management strategies, cultivate a culture of excellence, and contribute to academic success, institutional growth, and the attainment of educational objectives.

Keywords: Compensation Packages, Salary, Allowances, Staff Performance, Motivation, Employee Benefits