COMPENSATION AND EMPLOYEE PERFORMANCE AMONG SELECTED DEPOSIT MONEY BANKS INBENIN CITY

ABSTRACT This study examines the relationship between compensation and employee performance in selected deposit money banks in Benin City, Nigeria, with a focus on both junior and senior employees. The research aims to investigate the influence of compensation on job performance and compare the compensation packages between these two groups. Using a purposive sampling technique, branches of five top- performing banks were selected from various locations in Benin City. The total population comprised 505 employees, including 108 senior employees and 397 junior employees.TheTaroYamaneformulawasemployedtodetermineasamplesizeof223 employees for the study. The study found that compensation, both direct and indirect, significantly influences employee performance, direct compensation significantly impacts the performance of junior employees, indirect compensationalso significantly affects the performance of junior employees, no significant relationship was found between direct compensation and senior employee performance, however, indirect compensation significantly influences the performance of senior employees, and a significant difference exists in the compensation and performance of junior and senior employees. Based on these findings, this study recommended that banks remunerate employees equitably, considering overtime and extra efforts, motivate employees with benefits like car awards to foster performance, align compensation with the bank's policywhileremainingadaptabletochanges,andinstitutesupportsystemsforefficient task completion and active employee participation.