EXAMINING THE RELATIONSHIP BETWEEN COMPENSATION POLICY AND EMPLOYEE PERFORMANCE IN EKITI STATE'S PUBLIC SECTOR: AN EMPIRICAL ANALYSIS

Abstract

Employee compensation, encompassing wages and additional benefits, constitutes a vital component of the employment contract, serving as the recompense for employees' contributions towards organizational performance enhancement. This paper delves into the multifaceted nature of compensation, elucidating its significance within the employer-employee relationship. Rooted in the exchange between labor and remuneration, compensation emerges as a fundamental requirement for employees, representing not only a means of monetary exchange but also a manifestation of value recognition for their efforts. Furthermore, compensation holds substantial implications for organizational cash flow, with its magnitude often accounting for a significant portion of company expenditure, particularly within the service sector. Through an exploration of the complexities inherent in compensation dynamics, this paper aims to offer insights into its role in shaping employee motivation, organizational performance, and overall business sustainability