Effects of Compensation Plan on Employee Performance in the Telecommunication Industry (A study of MTN and GLO Nigerian Ltd Umuahia Branch)
Melletus Uchechukwu Agbo
Department of Business Administration
Michael Okpara University of Agriculture, Umudike, Abia State, Nigeria
ABSTRACT:
This study examined the effects of compensation plan on employee performance in the telecommunication industry of MTN and Glo Nigerian, Umuahia. The research adopted the survey research design, using simple random sampling techniques, descriptive statistics and inferential statistics. A total number of eighty-eight (88) questionnaires were issued out by the researcher to the staff of MTN and GLO network providers. 17 respondents representing 21.3% strongly agreed that Prompt payment of salaries has influenced employee performance in the telecommunication industrys, 42 respondents representing 52.5% agreed the same, 7 respondents were undecided, 10 respondents disagreed, while 6 respondents strongly disagreed that the development of the enterprises has increased their access to credit from financial institutions. Also 18 respondents representing 22.5% strongly agreed that Commission has impacted employee productivity in the telecommunication industry, 35 respondents representing 43.8% agreed the same, 9 respondents were undecided, 3 respondents disagreed, while 15 respondents strongly disagreed that Commission has impacted employee productivity in the telecommunication industry. From the regression analysis, the coefficient of bonus and salary are positive and significant at 1%. The p-values of bonus and salary is 0.0064 and 0.0000 is less than the t-statistic value of 2.799 and 9.084 and the standard error value of 0.0785 and 0.0782 is less than the t-statistic value respectively. The adjusted R2 0.67 or 67% which revealed that the variables in the equation jointly explained 67% of the variations in the equation while the remaining 33% is explained by other variables not included in the equation. In other words, the R-square value of 67% expresses the percentage effect of remuneration dimension on employees’ performance jointly explained by salaries/wages and bonus/incentives on employees performance. Therefore, the findings indicates that, (i) Prompt payment of salaries has no significant effect on employee performance in the telecommunication industry. (ii) Commission has no significant effect on employee’s level of satisfaction in the telecommunication industry.
Keyword: Compensation, Compensation Plan, Employee Performance, Telecommunication Industry.
