Compensation Strategies and Employees’ Performance in Commercial Banks
Evidence from First Bank of Nigeria (FirstBank) in Calabar, Cross River State
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Abstract
This research examined the effect of compensation strategies on employees’ performance in commercial banks in Calabar, with emphasis on performance incentive programmes, recognition reward systems, and work-life balance frameworks. The study was prompted by the observed decline in employee performance within the Nigerian banking sector, often driven by poor compensation practices, unrealistic performance targets, high turnover rates, and workplace stress. The specific objectives were to determine the effect of performance incentive programmes, recognition reward systems, and work-life balance frameworks on employees’ performance. Primary data were obtained from 246 customer-facing employees of First Bank Nigeria Limited in Calabar through a structured questionnaire. A census sampling technique was employed to include the entire target population, ensuring complete representation. Data were analysed using descriptive statistics, while multiple regression analysis was employed to test the study’s hypotheses. Findings revealed that performance incentive programmes, recognition reward systems, and work-life balance frameworks each had significant positive effects on employees’ performance. The study concluded that well-structured and employee-centered compensation strategies are crucial in enhancing productivity, motivation, and organisational commitment while reducing turnover rates. Guided by these findings, the study recommended that commercial banks should expand their performance incentive programmes with tiered rewards, strengthen recognition reward systems through transparent and frequent acknowledgments, and enhance work-life balance frameworks by introducing flexible work arrangements and wellness support initiatives. These measures are expected to improve job satisfaction, boost performance, and promote long-term operational efficiency in the banking sector.
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