REWARD SYSTEM AND EMPLOYEES’ PERFORMANCE IN ISA MUSTAPHA AGWAI 1 POLYTECHNIC, LAFIA
Keywords:
Financial rewards, Employee performance, Salaries, Performance bonuses, Nigerian polytechnicsAbstract
This study examined the effect of financial rewards on employees’ task performance at Isa Mustapha Agwai I Polytechnic, Lafia, grounded in Herzberg’s Two-Factor Theory and Vroom’s Expectancy Theory. Despite evidence that financial incentives can motivate employees, limited empirical research exists on how salaries and performance bonuses influence staff performance in Nigerian polytechnics. A mixed-method approach was adopted, combining a structured questionnaire and key informant interviews. The population comprised 1,300 staff members, from which 400 respondents were proportionately selected using stratified sampling. A total of 370 questionnaires were returned and analyzed alongside 10 interviews. Quantitative data were analyzed using descriptive statistics (mean, standard deviation) and inferential statistics (chi-square test) via SPSS version 20, while qualitative data were thematically analyzed. Findings revealed that financial rewards significantly influence task performance. Respondents agreed that salaries motivate effective duty performance (mean = 3.84), performance bonuses enhance commitment (mean = 3.69), and rewards aligned with effort increase productivity (mean = 3.93). The chi-square test confirmed a statistically significant relationship between financial rewards and task performance (χ² = 214.63, df = 4, p < 0.05). Interview data corroborated that timely salary payments and performance bonuses foster motivation and organizational commitment. The results support Herzberg’s view that adequate financial rewards function as hygiene factors preventing dissatisfaction, and Vroom’s assertion that expected rewards enhance effort-performance motivation. The study concludes that structured and fair financial reward systems, particularly timely salaries and performance-linked bonuses, are critical for improving employee performance in public polytechnics. Recommendations emphasise implementing transparent salary and bonus mechanisms aligned with employee effort to sustain motivation and productivity.
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