Strategic compensation and employee commitment among commercial banks in Kano state, Nigeria

Abstract

This study, investigated the influence of strategic compensation (pay for knowledge and pay for performance) on employee commitment In particular, the study established relationship between pay for knowledge and employee commitment, pay for performance and employee commitment as well as the interaction of pay for knowledge and pay for performance (strategic compensation) with employee commitment among employees of commercial banks operating in Kano/ Nigeria. The study adopted descriptive correlational design and Cross Sectional Survey. The study also used both qualitative and quantitative data. That is/ Data was gathered through questionnaire and interview. Specifically, 291questionnaires were distributed out of which 257 were properly filled and returned Also ten interviews were conducted, with the respondents (interviewee). The data was further analyzed and interpreted using frequencies and percentages (for the respondents background informationJ means and standard deviation (for determining the extent of independent and dependent variables/ as well as Pearson s linear correlation coefficient and regression (for the relationships between the independent variable and dependent variable). Based on the analysis/ the research found high affective commitment, high continuance commitment, but low normative commitment The study also found high pay for knowledge/ but low pay for performance. The study also revealed significant and positive relationship between pay for knowledge and employee commitment, pay for performance and employee commitment and strategic compensation (pay for knowledge and pay for performance) and employee commitment among employees. Therefore/ based on the findings/ the study concluded that, the null hypotheses of no significant relationship between pay for knowledge and employee commitment, pay for performance and employee commitment and strategic compensation (pay for knowledge and pay for performance) and employee commitment among employees of commercial banks were rejected/ clearly indicating positive and significant relationship between them. The study also recommends that employees should enjoy more strategic compensation (pay for knowledge and pay for performance normative commitment should be given attention and employee commitment should always be best approached in a multidimensional way. Key words: strategic compensation employee commitment, pay for knowledge