The Effect of Employee Compensation and Performance of Agricultural Firms in Cross River State, Nigeria
Abstract
Ineffective and poorly designed employee compensation can have adverse consequences for both employees and organizational performance. The study examined employee compensation and performance in agricultural firms in Cross River State. It investigated the effect of employee compensation, proxied by overtime pay and healthcare support, on performance, measured by productivity and efficiency. A cross-sectional research design was adopted. A stratified sampling method was used to select elements. Multiple regression and Pearson's correlation were used. Taro Yamane’s sample size formula was adopted to determine a sample size of 333. The findings established that all dimensions of employee compensation have a significant and positive effect on the performance of agricultural firms in Cross River State, Nigeria. The study concluded that, for agricultural firms in Cross River State, Nigeria, where labour is seasonal and turnover is high, strengthening these two employee compensation variables offers a practical, low-cost way to achieve better results. It was recommended that managers implement structured overtime pay for peak agricultural periods so that workers are fairly compensated for extended hours during planting and harvest, thereby reducing labour shortages when they matter most. Managers should provide basic healthcare support for employees by covering first aid, malaria treatment, and farm- related injury care through local clinics or on-site funds, thereby reducing absenteeism and building worker loyalty.