EFFECT OF REMUNERATION SCHEMES ON EMPLOYEE’S PERFORMANCE IN FIRST BANK OF NIGERIA

Abstract

This study examined the effect of remuneration schemes on employees’ performance in First Bank of Nigeria. The study was motivated by the increasing importance of effective remuneration in promoting employee motivation, commitment, productivity and organisational effectiveness, particularly within the competitive and target-driven banking environment. The study specifically examined the effects of salary and wages, bonuses and incentives, allowances and other employee benefits, as well as the overall remuneration scheme on employees’ performance. The study adopted a descriptive research design based on secondary data. Relevant information was obtained from textbooks, peer-reviewed journal articles, conference papers, dissertations, institutional publications, annual reports and other reputable sources relating to remuneration and employee performance. Data were analysed using qualitative content analysis, through which findings from existing studies were systematically reviewed, compared and synthesised in line with the objectives of the study. The findings indicate that adequate and fairly administered salary and wages can improve employee morale, commitment and productivity. Bonuses and incentives were also found to have a positive influence on performance, particularly when their eligibility criteria are clear, measurable and consistently applied. Allowances and other employee benefits were found to contribute to employee well-being, job satisfaction and organisational commitment, although their influence may be more indirect than that of direct financial rewards. Overall, the study found that remuneration schemes can positively influence employee performance when they are adequate, equitable, transparent, competitive and consistently administered. The study concludes that First Bank of Nigeria should regularly review its remuneration structure, strengthen transparent performance-based incentive systems, maintain competitive employee benefits and ensure prompt and consistent payment of remuneration.