COMPENSATION MANAGEMENT AND EMPLOYEE PERFORMANCE IN THE SERVICE INDUSTRY: A CASE OF THE HOSPITALITY INDUSTRY IN NIGERIASaleeman, Sheu Ibrahim Department of Economics,
Kwara State College of Education, Ilorin
The study explored the relationship between compensation management and employee performance in the service industry with a specific reference to the hospitality industry in Kwara state. The study was anchored on three (3) main theory, Economic Theory of Minimum Wage, Vroom’s Expectancy Theory Herzberg-motivation-hygiene Theory. The study employs a survey research design that allows for the use of questionnaires to elicit information from respondents. The study's real population is the entire staff of hotels and resorts in the service industry's sub-sector. The findings show that the impact of the reward system on employees’ performance in the Hotels and resorts in Kwara state is significant at (R2 = 0.98; P=0.000). This shows that intrinsic rewards proxies such as salaries, wages, bonus and incentives contribute significantly to employees’ performance in Hotels and resorts in Kwara State. As a result, it is important to state that salary management is a crucial and essential question for the organization's operation and control. Because workers take pay equity at work seriously, companies of labour should make sure that their pay is equitable when compared to other sectors in the same or comparable industries.
Keywords: compensation management, employees’ performance, hospitality industry, Kwara state. .