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EFFECTS OF COMPENSATION PRACTICES ON ACADEMIC STAFF’S JOB

PERFORMANCE IN FEDERAL UNIVERSITY OF AGRICULTURE, ABEOKUTA,
OGUN STATE, NIGERIA

Article in Journal of Humanities Social Science and Creative Arts · December 2021
DOI: 10.51406/jhssca.v15i1.2089

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EFFECTS OF COMPENSATION PRACTICES ON

ACADEMIC STAFF’S JOB PERFORMANCE IN
FEDERAL UNIVERSITY OF AGRICULTURE,
ABEOKUTA, OGUN STATE, NIGERIA
*Y. JOSHUA, S. O. AYANSINA, O. S. ALABI, M. O. OOSE AND O. S.
ADEGBOYEGA

Department of Agricultural Administration, College of Agricultural Management and

Rural Development, Federal University of Agriculture, PMB 2240, Abeokuta, Nigeria.
*Corresponding Author: yilajoshua@yahoo.com Tel: +2348039526718

ABSTRACT
The study examined the effect of compensation practices on academic staff’s job performance in Fed-
eral University of Agriculture, Abeokuta, Ogun State, Nigeria. Multi stage sampling technique was
used to purposively select 3 Agricultural base colleges followed by proportionate stratified sampling
technique where respondents were randomly selected. One hundred and three (103) respondents
from the three colleges of agriculture of the university were selected of which 92 questionnaires were
retrieved. Data obtained was analyzed using descriptive and inferential statistics such as mean, stan-
dard deviation, chi-square and Pearson Product Moment Correlation. Finding revealed that the mean
age of the respondents was 42.71 years, 71.7% of the respondents were male, 81.5% of them were
married and 79.3% of the respondents were PhD holders. The mean years of experience was 10
years while their mean income was ₦217447.29. Most (79.4%) academic staff perceived that there is
a pressing need to review and rationalize the pay structure to improve employee efficiency, some of
the compensation packages available were; retirement benefit (100%), study leave (91.3%), career
development opportunity (82.6%). The major constraints to compensation strategies identified were
poor insurance scheme (21.7%), inadequate welfare package (20.7%) and poor communication net-
work (19.6%). Furthermore, a significant relationship existed between respondents’ age (r= -0.204,
P<0.05), compensation packages (r= 0.26, P<0.05) and their job performance. The results concluded
that academic staff perceived a pressing need to review the compensation packages by involving
them in the compensation decision making process. Effective management and implementation of
compensation packages is highly recommended.

Keywords: Compensation Practices, Academic Staff, Job Performance

INTRODUCTION ployee (Akter and Moazzam 2016). Ardana

In the age of global competition, it is very (2012) defined compensation as everything
essential to identify and retain the efficient, received by employees as a reward for its
competent and knowledgeable employees in contribution to company or organisation.
organisation by developing and maintaining Compensation is everything that employees
an effective compensation program for get- receive as a reward for their work. Pang-
ting the best job performance from the em- gabean (2004) also explained compensation

J. Hum. Soc. Sci. Crtv. Arts 2020, 15: 1– 15 1

Y. JOSHUA, S. O. AYANSINA, O. S. ALABI, M.O. OOSE AND O.S. ADEGBOYEGA

as rewards and can be defined as any form that the degree to which employees are satis-
of reward given to employees for contribu- fied with their job and their readiness to re-
tions they provide to organisation. Sirait main in an organisation is a function of com-
(2006) explains that compensation is some- pensation packages and reward system of the
thing received by employees, whether in Organisation (Fadugba, 2012). Adeniyi
form of financial or non-financial reward (2013) posit that the fundamental tasks in
for employee's contribution to organisation. human resources management is compensa-
tion management. It is a complex task that
Management of compensation is a very im- occurs periodically, demand accuracy and
portant activity to make employees quite m u s t not be delayed.
satisfied in their work. Compensation is the
human resource management function that Compensation management requires inte-
deals with every type of reward individuals grating employees’ processes and informa-
receive in exchange for performing organ- tion with business process and strategies to
isational tasks (Ivancevich, 2006). It is con- achieve optimal organisational goals and ob-
sidered the major cost incurred by a busi- jectives (Adeniyi 2013). This can be attrib-
ness organisation. However, today the hu- uted to the fact that compensation manage-
man resource is considered as human capi- ment is an essential tool to "integrate indi-
tal and compensation hence is not cost but vidual efforts with strategic business objec-
rather investment. It is a systematic ap- tives by encouraging employees to do the
proach to providing monetary value to em- right things with ever improving efficiency.
ployees in exchange for work performed. (Adeniyi, 2013). In recent years, the inclusion
of non-financial measures has gained some
Compensation may achieve several pur- popularity in compensation management,
poses; assisting in recruitment, job perform- while some schools demonstrate positive
ance, and job satisfaction (Yamoah, 2013). effects of incorporating non- financial meas-
Compensation can acquire or create and ures in to the compensation management
maintain productivity. Without adequate system empirically. Human resources model
compensation, existing employees tend to of compensation generally assume that
leave the organisation and organisations will higher performance requires greater effort
have difficulty in replacement, especially in on the part of workers. According to Gupta
recruiting. Employees are the organisation’s and Shaw (2014), the design and implemen-
key resource and the success or failure of tation of compensation systems not only can
organisations center on the ability of the affect employee motivation, but also can be
employers to attract, retain, and reward ap- harnessed to improve safety, quality, creativ-
propriately talented and competent employ- ity, innovation and a myriad other outcomes
ees. Employees’ willingness to stay on the critical in a successful workplace. And that’s
job largely depends on compensation pack- exactly, what is needed from teachers to
ages of the organisation (Armstrong, 2003). build a lasting educational foundation for
In an attempt to ensure employees optimal students. By extension, what Gupta and
performance and retention, organisations Shaw mean to say is that any employee
need to consider appropriate ways to re- (teacher) who benefits from a properly de-
ward the employees to get the desired re- signed compensation system is likely to give
sults (Falola et al., 2014). It has been argued off their best to ensure a successful and ef-

J. Hum. Soc. Sci. Crtv. Arts 2020, 15: 1– 15 2

 EFFECTS OF COMPENSATION PRACTICES ON ACADEMIC STAFF’S JOB...

fective performance. And it should not be important part of every employee’s compen-
overlooked that people look for jobs that sation. Other terminology such as fringe
not only suit their creativity and talents, but benefits, employee services, supplementary
compensate them in terms of salary and compensation and supplementary pay are
other benefits accordingly (Osibanjo, used. Indirect compensation or Employee
Adeniji, Falola & Heirsmac, 2014). benefits are elements of remuneration given
in addition to the various forms of cash pay.
Types of Compensation They also include items that are not strictly
Direct Compensation: According to remuneration such as annual holidays. Man-
Dessler (2013), direct compensation is usu- agement uses it ostensibly to facilitate its re-
ally limited to the direct cash benefits that cruitment effort or influence the potential of
the employees receive on monthly, bi- employees coming to work for a company,
monthly or weekly basis for the services influence their stay or create greater commit-
they render as employees of a particular or- ment, raise morale, reduce absenteeism in
ganisation. It could also be in the form of general and improve the strength of the or-
stock bonus compensation, where employ- ganisation by instituting a comprehensive
ees of the organisation are given the oppor- programme in this area Dessler (2013).
tunity to own shares in the organisation
they work for and at the end of every year Ivancevich (2006) mentioned Paid Holidays,
they have the opportunity again to gain Workers’ Compensation, retirement and
some dividend in the form of equity on pension plans, and paid vacations as some of
their shares. Ivancevich (2006) states that the more popular indirect compensations.
direct compensation includes Base and vari- From the ongoing discussions, it could be
able. Base Pay refers to the basic compensa- concluded that compensation packages entail
tion that an employee receives, usually as a some basic features that tend to make em-
wage or salary. Base Pay may be hourly and ployees satisfied on their job amongst which
salaried, which are identified according to includes salaries, bonuses, incentives, allow-
the way pay is distributed and the nature of ances, promotion, recognition (Werner,
the jobs. Hourly pay is the most common 2001; Martineau, Lehman, Matwa, Kathyola
means of payment based on time while peo- and Storey, 2006). And as indicated by Ya-
ple paid salaries receive consistent payments moah (2013), all these have significant im-
each period regardless of the number of pact on employees’ performance. However,
hours worked. Variable Pay, another type of as indicated by Osibanjo et al., 2014), to
direct pay is compensation linked directly to avoid wrong perception and controversy by
individual, team, or organisational perform- employees, compensation system must be
ance. The most common types of variable clearly communicated to employees with job
pay for most employees take the form of measurement which will drive the much
bonuses and incentive program payments. needed performance in the employees. Osi-
banjo, Adeniji, Falola and Heirsmac (2014),
Indirect Compensation: Dessler (2013) indicate that compensation package must be
refers to indirect compensation as the indi- attractive enough to prevent employees from
rect financial and nonfinancial payments becoming dissatisfied and looking elsewhere
employees receive for continuing their em- for better salary, career development oppor-
ployment with the company which are an tunities, fringe benefits, bonuses and incen-

J. Hum. Soc. Sci. Crtv. Arts 2020, 15: 1– 15 3

Y. JOSHUA, S. O. AYANSINA, O. S. ALABI, M.O. OOSE AND O.S. ADEGBOYEGA

tives. Thus, an organisation’s compensation cational institutions. Even those studies that
package could be referred to as a total re- touched on compensation are few; hence the
wards program and includes all the methods plea by some (Gupta & Shaw, 2014) for
(cash, equity, and benefits) used by employ- more research to be carried out on this all-
ers to pay employees for the work they pro- important human resource practice. More
vide for the organisation. An effective com- interestingly, the few that have been con-
pensation package or total reward package ducted are found in other contexts other
therefore, includes a variety of components than the Nigerian context and also focused
that attract and retain employees who have on industry rather than the educational sec-
skills needed by the organisation. Because tor. And further, the few conducted on the
people have different needs, based on their sector placed emphasis on teachers at the
individual circumstances, the components Secondary levels (Bozeman & Gaughan,
included in the package should be suffi- 2011; Muguongo, Muguna & Muriithi, 2015).
ciently varied to address the different re- Since most studies (Mugongo, Muguna &
quirements of people at different stages in Muriithi, 2015) in the area laid much empha-
their lives. For example, employees with sis on secondary levels, it is not very clear,
young children may be looking for benefits the state of the Nigerian employee,
that help them raise their children such as (especially, at the tertiary school level), in
day care or time off to attend to school ac- respect of whether compensation plays a role
tivities. Though the review discusses com- in their performance on the job. This study
pensation in its various forms, the study will therefore, is poised to assess compensation
focus more on monetary compensation. at the tertiary level of education, in the Nige-
rian context, to assess teacher perceptions
Statement of the problem about compensation practices and to deter-
It has been said that a nation’s prosperity mine whether compensation, in its various
cannot be better than the quality of the forms influence the performance of teachers,
teachers. And quality to a large extent de- with a view to establishing the real state of
pends so much on the motivation and satis- affairs.
faction of the teacher. Teachers are funda-
mental to the success of any nation, of Broad objective
which Nigeria is not an exception. It has The general objective of the study is; to ex-
also been indicated that the foundation amine the effect of compensation practices
upon which Nigeria’s educational super- on academic staff job performance in Fed-
structure is built is at the higher level of eral University of Agriculture, Abeokuta,
education. Hence, the need to ensure that Ogun State, Nigeria.
teachers at that level are kept motivated and
satisfied in order to help build a proper edu- Objectives of the study
cational foundation. In spite of the numer- i) describe the socio economic characteris-
ous studies conducted in the area of job tics of respondents in the study area;
performance, compensation which is at the ii) examine the compensation packages in
core of any employment relations exchange the study area.
and serves as a defining characteristic of any iii) determine respondents’ perception of
employment relationship seems not have compensation in the study area;
received much emphasis, especially in edu- iv) determine the level of job performance

J. Hum. Soc. Sci. Crtv. Arts 2020, 15: 1– 15 4

 EFFECTS OF COMPENSATION PRACTICES ON ACADEMIC STAFF’S JOB...

in the study area. 30 respondents from COLAMRUD, 38 re-

v) identify the various constraints affecting spondents from COLANIM and 35 respon-
compensation in the study area. dents from COPLANT. At the third stage,
the specified number of respondents from
Hypotheses of the study each of the colleges was selected using sim-
The hypotheses of this study were stated in ple random sampling technique. In all, 103
null form; respondents were selected for the study.
Ho1: There is no significant relationship
between respondents’ socio-economic Data was collected using a well-structured
characteristics and academic staff’s and valid questionnaire. The questionnaire
job performance. had five sections based on the specific objec-
Ho2: There is no significant relationship tives of the study. Section one contained
between compensation and academic items on the socioeconomic characteristics
staff’s job performance. of the academic staff. The personal charac-
teristics of the respondents were measured at
METHODOLOGY both nominal and interval levels. Section two
The study was carried out in the Federal contained questions on the respondents’ per-
University of Agriculture, Abeokuta, Nige- ception of compensation in the study area
ria. The university is one of the three spe- measured using researcher-made tool having
cialized universities of agriculture in the 11 items on a five-point scale of strongly
country. The university became operational agree (5), agree (4), undecided (3), disagree
during the academic session of 1988. The (2) and strongly disagree (1). Section three
university has nine colleges, a postgraduate contained questions on the availability and
school and some specialised institutes and desirability of compensation packages in the
centres. The population for the study com- study area using A researcher-made tool with
prised of the total academic staff of the uni- 15 items on a four-point scale of Available
versity. A multi-stage sampling procedure (A)=1, Unavailable(UA)=2, Very desirable
was used to select respondents for the (VD)=5, Desirable(D)=4, Neutral(N)=3,
study. At the first stage, a purposive selec- Undesirable(U)=2, Very undesirable(VU)=1.
tion of the three colleges (COLAMRUD, Section four measures the level of job per-
COLANIM and COPLANT) offering formance of respondents in the study area
Bachelor of Agriculture (B.Agric.) pro- using a 5-point likert scale which is Strongly
gramme was made. This is because by de- Agree(SA)=5, Agree(A)=4, Undecided(U)
sign, the three colleges run similar curricula =3, Disagree(D)=2, Strongly Disagree(SD)
and students from the three colleges jointly =1. Section five: This was used to measure
participate in the Farm Practical Year pro- the various constraints affecting compensa-
gramme in their 400 level, the programme tion in the study area using a 3-point which
which is also supervised and coordinated by is Not a constraint(NC)=1, Mild constraint
selected academic staff members within the (MC)=2, Severe constraint(SC)=3. Data col-
colleges as part of the requirement for the lected were analyzed using specific descrip-
award of the B.Agric. Degrees in the three tive statistics such as frequency, percentage,
colleges. At the second stage, a proportion- mean and standard deviation. Inferential sta-
ate sampling of 50 per cent of the academic tistics such as Chi-square and Pearson Prod-
staff in the colleges was carried out to give uct Moment Correlation was used for analy-
sis, to test the hypothesis of the study.
J. Hum. Soc. Sci. Crtv. Arts 2020, 15: 1– 15 5
Y. JOSHUA, S. O. AYANSINA, O. S. ALABI, M.O. OOSE AND O.S. ADEGBOYEGA

RESULTS AND DISCUSSION dents were divorced, also a few of (3.3%) of

Respondents’ socio-economic charac- the respondents were widowed. Fapojuwo
teristics (2010) asserts that marriage confers some
The results in Table 1 shows the age of the level of responsibility and commitment on
respondents, Majority (47.8%) of the re- the individual. Findings revealed that major-
spondents were between 35-44 years, ity (57.6%) of the respondents earn between
(17.4%) were between 45-53 years and also, 90,000 - 197,000 naira, (18.5%) earn between
(17.4%) of the respondents were between 198,000 - 305,000 naira, (17.4%) earn be-
54-62 years. Minority (1.1%) of the respon- tween 306,000 - 413,000 naira and minority
dents were above 63 years. The mean age of (6.5%) earn 414,000 naira and above. Less
the respondents is 42.7 years. This implies than half of the respondents (43.5%) had
that most of the respondents are agile and less than 8 years of working experience,
active individuals who can handle institu- 34.8% had 8-15 years working experience,
tional responsibilities properly. Majority (16.3%) had 16-23 years of working experi-
(71.7%) of the academic staff were male ence, 3.3% had 24-31 years of experience
while (28.3%) were female. This indicates while (2.2%) had more than 32 years of ex-
that the number of male in the institution is perience. Findings revealed that 22.8% of the
more than the female counterpart. The re- respondents were Professors, 6.5% were
sult showed that majority (79.3%) of the Readers, 15.2% were Senior Lecturers, 8.7%
respondents were PhD holders, (17.4%) were Lecturer 1, 28.3% were Lecturer 2,
were M.Sc holders while (3.3%) were B.Sc 10.9% were Assistant Lecturer, while 10.6%
holders. Majority (81.5%) of the respon- were Graduate Assistants. Most (78.3%)
dents were married, less than half (10.9%) were Christians, 20.7% were Muslims and
were single, a few (4.3%) of the respon- 1.1% were traditional worshippers.
Table 1: Distribution of respondents by socio-economic characteristics. N=(92)
VARIABLES FREQUENCY PERCENTAGE MEAN S.D
Age
25-34 15 16.3 42.71 9.195
35-44 44 47.8
45-53 16 17.4
54-62 16 17.4
>63 1 1.1

Sex
Male 66 71.7
Female 26 28.3

Marital Status
Single 10 10.9
Married 75 81.5
Divorced 4 4.3
Widowed 3 4.3
J. Hum. Soc. Sci. Crtv. Arts 2020, 15: 1– 15 6
 EFFECTS OF COMPENSATION PRACTICES ON ACADEMIC STAFF’S JOB...
Academic Qualifications
BSc 3 3.3
M.Sc 16 17.4
PhD 73 79.3

Years Of Experience
1-7 40 43.5 10.01 8.051
8-15 32 34.8
16-23 15 16.3
24-31 3 3.3
>32 2 2.2

Religion
Islam 19 20.7
Christianity 72 78.3
Traditional 1 1.1

Rank
Professor 21 22.8
Reader 6 6.5
Senior Lecturer 14 15.2
Lecturer I 8 8.7
Lecturer II 26 28.3
Assistant Lecturer 10 10.9
Graduate Assistant 7 7.6

Income
N90,000 - N 197,000 53 57.6 217447.29 107921.05
N 198,000 - N 305,000 17 18.5
N 306,000 - N 413,000 16 17.4
N 414,000 And Above 6 6.5

Source: Field Survey, 2019. S.D: Standard Deviation

Perception of compensation sion process, (34.8%) disagree that the cur-

The findings in Table 2 shows the percep- rent compensation package is motivating and
tion of compensation by the academic staff provide incentive for better policy.
in the study area. About 34.8% of the re- From the findings, it can be deduced that the
spondents strongly agree that there is press- academic staff of the Federal University of
ing need to review the pay structure, 68.5% Agriculture, Abeokuta perceive that the cur-
agree that the compensation package in FU- rent compensation packages in the institu-
NAAB is fair, (63.0%) agree that they know tion is not fair and there is a pressing need to
where to go for information related to review the packages by involving the them in
benefits. (29.3%) of the respondents dis- the compensation decision making process.
agree that the amount of pay they currently The result shows that there is a high level
receive is comparable to what they think (56.5%) of perception towards compensa-
should be, (40.2%) strongly disagree that tion.
they participate in the compensation deci-

J. Hum. Soc. Sci. Crtv. Arts 2020, 15: 1– 15 7

Y. JOSHUA, S. O. AYANSINA, O. S. ALABI, M.O. OOSE AND O.S. ADEGBOYEGA

Table 2: Perception towards compensation. N=(92)

S/N VARIABLES SA A U D
1 Compensation and benefit package of FUNAAB is 4(4.3) 63(68.5) 17(18.5) 8(8.7)
fair
2 The current compensation and benefit package is 5(5.4) 51(55.4) 15(16.3) 19(20.7)
motivating and provide an incentive for better per-
formance
3 The current compensation and benefit package of 3(3.3) 17(18.5) 29(31.5) 32(34.8)
FUNAAB is adequate to cope with the ongoing cost
of living
4 FUNAAB has a written compensation and benefit - 37(40.2) 42(45.7) 9(9.8)
policy
5 FUNAAB periodically evaluates the effectiveness of 1(1.1) 37(40.2) 23(25.0) 14(15.2)
compensation and benefit packages.
6 The current compensation and benefit package pro- 9(9.8) 50(54.3) 10(10.9) 14(15.2)
vides appropriate payment for the work related ex-
perience and qualification I have
7 The compensation provides the opportunity to attain 13(14.1) 35(38.0) 14(15.2) 28(30.4)
self- interests like building my own house, buy a car,
etc.
8 There is availability of information on compensation 9(9.8) 58(63.0) 4(4.3) 17(18.5)
benefits in FUNAAB that builds me.
9 The amount of pay I currently receive is comparable 4(4.3) 16(17.4) 22(23.9) 27(293)
to what I think it should be
10 There is a pressing need to review and rationalize the 32(34.8) 41(44.6) 12(13.0) 6(6.5)
pay structure to improve employee efficiency
11 There is a pressing need to review and rationalize the - 10(10.9) 14(15.2) 31(33.7)
pay structure to improve employee efficiency
Source: Field Survey, 2019.
S.A= Strongly Agreed, A=Agree, U= Undecided, D=Disagree, S.D= Strongly Disagree
Table 3: Perception Compensation Index. N=(92)
VARIABLE CATEGORIZATION FREQUENCY PERCENTAGE
Low 11-33 40 43.5
High 34-55 52 56.5
Source: Field Survey, 2019.

Compensation availability availability of free transportation and

Table 4 shows available compensation (79.3%) indicated unavailability of extra duty
packages in the study area. allowance. This implies that of compensation
All (100.0%) the respondents indicated packages such as: retirement benefits, sick
availability of retirement benefits, (83.7%) leave, regularity of promotion is available in
availability of sick leave. Furthermore, the study area. This means the compensation
(91.3%) indicated availability of regularity of packages are very limited in number, it there-
promotion, (8.7%) indicated availability of fore calls for the institution to put more ef-
regularity of promotion, (16.3%) indicated fort to make additional packages which will
availability of sick leave. Furthermore, serve as the motivating factor for the em-
(95.7%) of the respondents indicated un- ployees to do their best at work. Packages

J. Hum. Soc. Sci. Crtv. Arts 2020, 15: 1– 15 8

 EFFECTS OF COMPENSATION PRACTICES ON ACADEMIC STAFF’S JOB...

such as free transportation and extra duty to avoid not coming to work or late coming
allowance needs to be put in place in order and closing before time.
Table 4: Compensation Package Availability. N= (92)
S/N VARIABLE A UA
1 Vehicle maintenance allowance 4(4.3) 88(95.7)
2 Free recreation 9(9.8) 83(90.2)
3 Retirement benefit 92(100.0) -
4 Career development opportunity 76(82.6) 16(17.4)
5 Free medical insurance 57(62.0) 35(38.0)
6 Vacation leave 49(53.3) 43(46.7)
7 Extra duty allowance 19(20.7) 73(79.3)
8 Creche for children 72(78.3) 20(21.9)
9 Casual allowance 38(41.3) 54(58.7)
10 Free medical services 37(40.2) 55(59.8)
11 Study leave 84(91.3) 8(8.7)
12 Regularity of promotion 84(91.3) 8(8.7)
13 Long service awards 49(53.3) 43(46.7)
14 Free training workshop 79(85.9) 13(14.1)
15 Sick leave 77(83.7) 15(16.3)
16 Free transportation 4(4.3) 88(95.7)
Source: Field Survey, 2019.
A= Available UA= Unavailable
Compensation Packages Desirability that career development opportunity
Based on findings, Table 5 shows the result (6.65%), free medical insurance (10.9%), va-
of the desirability of compensation pack- cation leave (1.1%), extra duty allowance
ages in the study area. (3.3%) and free medical services compensa-
Most (46.7%) of the respondents indicated tion packages (12.0%) are undesirable.
that career development opportunity, free
medical insurance (45.7%), vacation leave This implies that majority of the respon-
(63.0%), extra duty allowance (43.5%) and dents’ desires career development opportu-
free medical services compensation pack- nity, free medical insurance, vacation leave,
ages (41.3%) are very desirable. Most extra duty allowance, free medical services
(35.9%) of the respondents strongly agree compensation packages while minority of
that free training workshop is desirable. On the respondents do not desire the same
the other hand, the respondents indicated stated compensation packages.

J. Hum. Soc. Sci. Crtv. Arts 2020, 15: 1– 15 9

Y. JOSHUA, S. O. AYANSINA, O. S. ALABI, M.O. OOSE AND O.S. ADEGBOYEGA

Table 5: Compensation Packages Desirability. N= (92)

S/N VARIABLE VD D N U VU
1 Vehicle maintenance allowance 4(4.3) 42(45.7) 38(41.3) 8(8.7) -
2 Free recreation 12(13.0) 23(25.0) 46(50.0) 10(10.9) 1(1.1)
3 Retirement benefit 50(54.3) 27(29.3) 14(15.2) - 1(1.1)
4 Career development opportunity 43(46.7) 30(32.6) 13(14.1) 6(6.5) -
5 Free medical insurance 42(45.7) 8(8.7) 31(33.7) 10(10.9) 1(1.1)
6 Vacation leave 58(63.0) 19(20.7) 14(15.2) 1(1.1) -
7 Extra duty allowance 40(43.5) 27(31.5) 20(21.7) 3(3.3) -
8 Creche for children 35(38.0) 24(26.1) 27(29.3) 6(6.5) -
9 Casual allowance 25(27.2) 26(28.3) 35(38.0) 6(6.5) -
10 Free medical services 38(41.3) 15(16.3) 26(28.3) 11(12.0) 2(2.2)
11 Study leave 54(58.9) 21(22.8) 11(12.0) 6(6.5) -
12 Regularity of promotion 52(56.5) 20(21.7) 20(21.7) - -
13 Long service awards 24(26.1) 37(40.2) 24(26.1) 7(7.6) -
14 Free training workshop 31(33.7) 33(35.9) 26(28.3) 1(1.1) 1(1.1)
15 Sick leave 15(16.3) 37(40.2) 30(32.6) 10(10.9) -
16 Free transportation 19(20.7) 23(25.0) 32(34.8) 9(9.8) 9(9.8)
Source: Field Survey, 2019.
VD= Very desirable D= Desirable N= Neutral U= Undesirable VU= Very undesirable

Respondents’ job performance work increases (59.8%),

Table 6 shows the results on the findings on iii) makes employees feel appreciated and
academic staff job performance in the study they give their best (56.5%),
area. The respondents indicated that a well- iv) rewarding hardworking employees to sus-
designed compensation policy and its effec- tain high performance (52.2%) and
tive management and implementation has v) improves employee willingness to extra
an effect on employee performance in the work and go the extra mile (57.6).
following ways:
i) increases employees’ readiness to learn This implies that a well-designed compensa-
new skills and preparedness to transfer skills tion policy and its effective management and
onto the job (62.0%), implementation has an effect on employee
ii) makes employee committed to the or- performance. This result shows that there is
ganisation and therefore commitment to a high level (80.4%) of job performance.

J. Hum. Soc. Sci. Crtv. Arts 2020, 15: 1– 15 10

 EFFECTS OF COMPENSATION PRACTICES ON ACADEMIC STAFF’S JOB...

Table 6: Distribution of respondents by their level Job Performance

S/N VARIABLES SA A U D
1 Motivates employees to perform better 57(62.0) 35(38.0) - -
2 Improves employee willingness to extra work 53(57.6) 37(40.2) - 2(2.2)
and go the extra mile
3 Makes employee committed to the organisation 55(59.8) 37(40.2) - -
and therefore commitment to work increases
4 Increases employees’ readiness to learn new 57(62.0) 34 1 -
skills and preparedness to transfer skills onto (37.0) (1.1)
the job
5 Creates a healthy environment for work and 42(45.7) 48 - 2
improves the health (soundness) of employees (52.2) (2.2)
6 Creates very good working relationship be- 46(50.0) 46 - -
tween management and employees to improve (50.0)
performance
7 Makes employees feel appreciated and they give 52(56.5) 40 - -
their best (43.5)
8 Attracts and motivates qualified personnel to 50(54.3) 42 - -
work better (45.7)
9 Improves employees punctuality to work and 45(48.9) 42 3 2
reduces employee absenteeism (45.7) (3.3) (2.2)
10 Rewarding hardworking employees to sustain 48(52.2) 42 - 2
high performance (45.7) (2.2)

Source: Field Survey, 2019.

S.A; Strongly Agree A; Agree U; Undecided D; Disagree S.D; Strongly Disagree

Categorization of respondents’ job per- low job performance. This is expected as

formance in the study area many of the respondents score above the
Results in Table 6 reveal the categorization weighted grand mean in job performance
of respondents’ job performance in the expectation in the organisation. It may be as
study area. Findings reveal that 80.4% of a result of positive organisational culture
the respondents score above the mean possessed in the organisation and this could
score, indicating they had high job perform- directly influence the success of the organisa-
ance while 19.6% of the respondents score tion.
below the mean score, indicating they had

Table 7: Level of employee’s job performance

VARIABLE CATEGORIZATION FREQUENCY PERCENTAGE
Low 10-30 18 19.6
High 30-50 74 80.4

J. Hum. Soc. Sci. Crtv. Arts 2020, 15: 1– 15 11

Y. JOSHUA, S. O. AYANSINA, O. S. ALABI, M.O. OOSE AND O.S. ADEGBOYEGA

Constraints affecting academic staff job are problems that needs to proffer solutions
performance in the study area to, in order to make the employees perform
The result in Table 8 shows that the major their job effectively and efficiently, adequate
challenges identified in the study area were equipment, welfare package and good com-
inadequate equipment (38.0%), poor insur- munication network must be provided if not
ance scheme (21.7%), inadequate welfare workers will just be coming to without utiliz-
package (20.7%), poor communication net- ing their ability, also the working conditions
work (19.6%) while mild constraints are must be safe so that they can feel protected
poor or unsafe working conditions (78.3%), from any infection, attack and other things
ethnic preference (68.5%). This means there that may harm them at work.

Table 8: Distribution of respondents by constraints faced by the academic staff

S/N VARIABLES NC MC SC WM
1 High cost and poor quality of ICT facilities 25(27.2) 52(56.5) 15(16.3) 1.9
2 Inadequate equipment 10(10.9) 47(51.1) 35(38.0) 2.3
3 Poor communication network 6(6.5) 68(73.9) 18(19.6) 2.1
4 Delay promotion 52(56.6) 26(28.3) 14(15.2) 1.6
5 Poor or unsafe working Condition 10(10.9) 72(78.3) 10(10.9) 2.0
6 Inadequate welfare Package 12(13.0) 61(66.3) 19(20.7) 2.1
7 Poor insurance scheme 12(13.0) 60(65.2) 20(21.7) 2.1
8 Ethnic preference 17(18.5) 63(68.5) 12(13.0) 2.0
9 Job insecurity 34(37.0) 40(43.5) 18(19.6) 1.8
Source: Field Survey, 2019.
NC= Not a constraint MC= Mild constraint SC= Severe constraint WM: Weighted mean
HYPOTHESIS TESTING considered were sex, marital status, academic
Test of association between respon- qualification, rank and religion. Sex (χ=
dents’ socio-economic characteristics 0.403, P< 0.05), Marital Status (χ= 1.853, P<
and their job performance 0.05), academic qualification (χ= 1.037, P<
The significance of the association was de- 0.05), rank (χ= 8.327, P< 0.05), religion (χ=
termined at 0.05 levels. The Chi-square 0.898, P< 0.05). This implies that despite the
analysis showed that there is no significant sex, marital status, academic qualification,
association between the respondents’ socio- rank and religion of the academic staffs, aca-
economic characteristics and job perform- demic staffs still carried out their respective
ance. The socio-economic characteristics task in the institution.

J. Hum. Soc. Sci. Crtv. Arts 2020, 15: 1– 15 12

 EFFECTS OF COMPENSATION PRACTICES ON ACADEMIC STAFF’S JOB...

Table 9: Association between socio-economic characteristics and job performance

VARIABLE CHI-SQUARE DF P-VALUE DECISION
SEX
Male 0.403 1 0.526 NS
Female
MARITAL STATUS
Single 1.853 3 0.603 NS
Married
Divorced
Widowed
ACADEMIC QUALIFICATION
B.Sc 1.037 2 0.595 NS
M.Sc
PhD
RELIGION
Islam 0.898 2 0.638 NS
Christianity
Traditional
RANK
Professor 8.327 6 0.215 NS
Reader
Senior Lecturer
Lecturer I
Lecturer II
Assistant Lecturer
Graduate Assistant
Source: Field Survey, 2019.
Note: S-Significant, NS-Not significant
P-value>0.05=Not significant P-value<0.05=Significant DF=Degree of freedom
Test of relationship between socio- plies that as academic staff gets older, their
economic characteristics and academic level of job performance reduces.
staff job performance The correlation analysis also showed that
PPMC was used to test variables measured there was no significant relationship between
at interval level. The socio-economic char- income (r= -0.195, P>0.05), years of work-
acteristics considered were: age, income and ing experience (r= -0.156, P>0.05). This im-
years of experience. The significant relation- plies that despite the income and years of
ship was determined at 0.05 levels. The cor- working experience of the academic staff,
relation analysis showed that a significant they still don’t perform better as a result of
and negative relationship existed between old age, inadequate equipment, unsafe work-
the respondents age (r= -0.204, P< 0.05) ing condition and poor communication
and the level of job performance. This im- skills.

Table 10: Test of relationship between socio-economic characteristics and academic

staff job performance
VARIABLE R-VALUE P-VALUE DECISION
Age -0.204 0.051 S
Income -0.195 0.062 NS
Years of experience -0.156 0.139 NS

J. Hum. Soc. Sci. Crtv. Arts 2020, 15: 1– 15 13

Y. JOSHUA, S. O. AYANSINA, O. S. ALABI, M.O. OOSE AND O.S. ADEGBOYEGA

Source: Field Survey, 2019.

Note: S-Significant, NS-Not significant
P-value>0.05=Not significant P-value<0.05=Significant
Test of relationship between compensa- This result implies that academic staff will
tion packages and job performance work better if there is a well-designed com-
The result in Table 10 indicated that there pensation packages, compensation policy,
was a positive relationship between com- effective management and implementation
pensation packages of the academic staff of the compensation packages.
(r=0.264, P=0.011) and job performance.
Table 11: Test of relationship between compensation package and job performance
Variable R-value P-value Decision
Compensation package and job performance 0.264 0.011 S
Source: Field Survey, 2019.
Note: S-Significant, NS-Not significant
P-value<0.05=Significant

CONCLUSION AND Osun State, South-Western Nigeria. African

RECOMMENDATIONS Journal of Food, Agriculture, Nutrition and Devel-
The study concluded that academic staff’s opment.
work better when given good compensation
packages, there is significant relationship Akter, N., Moazzam, H. 2016. Effect of
between the respondents’ age and the level compensation on job performance: An em-
of job performance and that the manage- pirical study. International Journal of Engineering
ment of compensation packages also en- Technology, Management and Applied Science. 4(8)
hances performance. Based on the conclu- America‟s Best-Run Companies, Harper-
sion of this study, the findings recommend Collins Publishers, London.
that;
 Proper compensation packages and Ardana, I., Komang dkk. 2012. Manajemen
policies should be established to ensure Sumber Daya Manusia. Yogyakarta.GRAHA
proper execution of task. ILMUWalker, James. 2009. Human Re-
 The institution should involve the aca- source Planning. New York: McGraw-Hill
demic staff in the compensation deci- Book Co. Pp 95.
sion making process.
 Institution should make effective man- Armstrong, M. 2003. A Handbook of Hu-
agement and implementation of com- man Resource management practice, Hand-
pensation packages so as to enhance book of strategic HRM, Crest Publishing,
their job performance. UK.

Bozeman, B., Gaughan, M. 2011. Job Sat-

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(Manuscript received: 3rd July, 2020; accepted: 19th November, 2020 )

J. Hum. Soc. Sci. Crtv. Arts 2020, 15: 1– 15 15