Effect of compensation on employee job performance: the case of Holy Family Nursing and Midwifery Training College-Berekum

Abstract

The study was conducted to assess the effect of compensation on employee performance after controlling for the effect of perceived external equity. It was conducted in Holy Family Nursing and Midwifery Training College in the Brong Ahafo Region of Ghana. Explanatory research design was adopted in this study with much reliance on quantitative research approach. The study adopted census as the sampling techniques since the population size was relatively smaller (84 permanent staff) and highly accessible. Structured questionnaire was used to collect the primary data. The primary data were collected through self-administration. Statistical Package for Social Sciences was configured with the SPSS Process Macro Package for the primary data processing. Statistical technique such as multiple regression, Perason product moment correlation, independent sample t-test (parametric techniques) and descriptive statistics such as mean, standard deviation, frequency and percentage were used to ascertain the findings relating to the specific objectives and hypothesis. The analysis data revealed that, there is a moderate positive correlation between compensation and employee performance. However, perceived external equity failed to mediate the predictive relationship between compensation and employee performance. Based on the findings it was recommended to management to pay more attention to their performance-based pay, staff involvement in compensation setting and salary audits to promote efficient employee performance.