Authors : Mmadueke Marcus Aniedobe; Emeka Henry Izuegbu; Ngozi Mascot Onyike

Volume/Issue : Volume 11 - 2026, Issue 8 - August

Google Scholar : https://tinyurl.com/3mp4hx4w

Scribd : https://tinyurl.com/mva2jwxh

DOI : https://doi.org/10.38124/ijisrt/26aug107

Note : A published paper may take 4-5 working days from the publication date to appear in PlumX Metrics, Semantic Scholar, and ResearchGate.

Abstract : This study examined the influence of compensation and reward systems on the organizational performance of commercial deposit money banks in Lagos, Nigeria. The central aim was to determine how structured compensation and reward practices contribute to improved employee and organizational outcomes. Specifically, the objectives were to: examine the effect of compensation and reward systems on employee productivity; assess the influence of monetary and nonmonetary rewards on employee retention; evaluate the contribution of compensation structure to organizational efficiency and service delivery; and determine the relationship between performance-based reward systems and the financial performance of deposit money banks. A total of 300 employees were sampled, and data were collected through structured questionnaires and analyzed using descriptive and inferential statistical tools. The findings revealed that compensation and reward systems have a significant positive effect on employee productivity, with fair remuneration packages enhancing work commitment and reducing turnover intentions. Both monetary rewards, such as salaries and bonuses, and non-monetary incentives, such as recognition and career development opportunities, were found to substantially improve employee retention in the competitive banking sector. Additionally, the study established that transparent and well-designed compensation structures contribute meaningfully to organizational efficiency and quality service delivery. Furthermore, performance-based reward systems showed a strong correlation with financial performance, as they motivated employees to align individual efforts with corporate goals, thereby improving profitability and competitiveness. The study concludes that effective compensation and reward systems are critical drivers of organizational success, particularly in service-oriented industries such as banking, where human capital is a key resource. It recommends that deposit money banks in Lagos should adopt a balanced compensation approach that integrates monetary and non-monetary rewards, regularly review and adjust their compensation structures to remain attractive in the labor market, and ensure that performance-based rewards are directly tied to measurable organizational outcomes. The research contributes to knowledge by providing empirical insights from the Nigerian banking sector, demonstrating that compensation and reward systems are not merely operational tools but strategic levers for employee motivation, retention, organizational efficiency, and financial sustainability.

Keywords : Compensation, Reward Systems, Organisational Performance.

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