EFFECT OF REWARD SYSTEM ON THE PERFORMANCE OF EMPLOYEES: A STUDY OF SELECTED COMMERCIAL BANKS IN OSOGBO METROPOLIS, OSUN STATE, NIGERIA

Abstract

The study investigated the effect of reward system on the performance of employees in selected commercial banks in Osogbo metropolis, Osun State, Nigeria. Structured questionnaire was used to collect data from 71 respondents out of 128 permanent staff through random sampling method. Multiple regression analysis was used to analyze the data collected in order to examine the effect of independent variable, reward system dimensions (salary, recognition and bonus), on dependent variable (employees’ performance). The result showed that the dimensions of reward system have significant effect on employees’ performance. Based on this, it is concluded that the predictor variables namely (salary (0.372); recognition (0.251); bonus (0.328)) are jointly 78.0 percent variance of employees’ performance. In line with this, the study therefore, recommended that management of organization should make use of every dimension of intrinsic and extrinsic reward system to encourage their staff for higher productivity.