EFFECT OF COMPENSATION ADMINISTRATION ON PERFORMANCE OF ACADEMIC STAFF IN UNIVERSITIES IN KWARA AND OSUN STATES, NIGERIA

Abstract

This study investigates the impact of compensation management on the performance of academic staff within Nigerian universities. Despite the critical role of compensation in enhancing staff performance, the Nigerian higher education sector faces challenges such as inadequate benefits, and misaligned policies, leading to low morale, high turnover, and reduced productivity. This research explored the relationship between compensation administration and academic staff performance (teaching effectiveness, research productivity, and professional development).A cross-sectional survey design was employed, analyzing data from a sample of 487 academic staff (out of an initial distributed questionnaire of 504) across a population of 12,209 academic staff in public and private universities in Kwara and Osun States. Data was gathered through structured questionnaires, with a high response rate of 98.38% (487 usable responses). The research used descriptive and inferential statistics, including linear regression analysis, with all questionnaire demonstrating strong reliability.The findings revealed significant positive relationships across all compensation dimensions and academic staff performance. Compensation administration accounted for 53.0% (R2=0.530, p < 0.001). Independent samples t-tests consistently showed significant differences in perceptions and reported performance between academic staff in public and private universities, with public university staff generally exhibiting higher mean scores for compensation administration and performance dimensions. The study conclude that effective compensation management systems are critical for enhancing academic staff performance, with transparent administration. It is recommended that university administrators regularly review and update compensation frameworks for competitiveness and equity, implement transparent administration, and strategically design incentives.