Compensation Strategies and Performance of Commercial Banks in Anambra State, Nigeria
Abstract
This study examined compensation strategies and performance of commercial banks in Anambra State, Nigeria. The specific objectives were to determine the relationship between promotion and quality service delivery, investigate the relationship between job security and business advantage, examine the relationship between training and employee productivity. Data were collected using a structured questionnaire, which was randomly distributed among employees of twelve selected commercial banks across the three senatorial districts of Anambra State. The total study population was 1,559 employees, from which a sample size of 301 was determined using the Borg and Gall formula. The data were analyzed using correlation analysis at a 0.05 significance level, with results presented through descriptive statistics, including tables, frequencies, and percentages. Findings revealed that promotion had a significant positive relationship with quality service delivery (r = 0.712, p = 0.000), indicating that employees with clear career advancement opportunities demonstrated improved service delivery. Job security was found to significantly enhance business advantage (r = 0.689, p = 0.000), suggesting that employees with stable job conditions contributed more effectively to business growth. A strong positive correlation was observed between training and employee productivity (r = 0.753, p = 0.000), demonstrating that structured training initiatives significantly enhance workforce efficiency. The study concludes that compensation strategies play a crucial role in enhancing employee motivation, performance, and overall organizational success in the banking sector. Hence, recommended that commercial banks adopt transparent promotion policies, implement job security measures and invest in continuous training, to enhance employee satisfaction and business competitiveness.
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