CONTINGENT PAY AND EMPLOYEE PERFORMANCE IN THE BANKING INDUSTRY: A STUDY OF SELECTED BANKS IN ONITSHA METROPOLIS

CONTINGENT PAY AND EMPLOYEE PERFORMANCE IN THE BANKING INDUSTRY: A STUDY OF SELECTED BANKS IN ONITSHA METROPOLIS

ABSTRACT

This study sets out to examine the impact of contingent pay on employee performance in the banking industry. Probabilistic sampling technique has been used for the study. Four research questions and three hypotheses were formulated to guide the study. To achieve this, data were collected through a well-structured questionnaire from five banks in Onitsha Metropolis. The data were presented in frequency tables and analyzed using chi-square test statistics. The result of the analysis showed that, there is a significant relationship between contingent pay and employee performance, that contingent pay has impact on the employee performance. Employee performance has greatly improved since the introduction of performance-based pay. The main recommendation of the study is that organizations should introduce performance-based pay in order to reduce their staff cost instead of mass retrenchment. They should also seek the input of the employee in setting performance standards.