Performance-based compensation and employee motivation in pharmaceutical firms in Enugu State

The study evaluated the relationship between performance-based compensation and employee motivation in pharmaceutical firms in Enugu State. The specific objectives were to: determine the effect of profit-sharing scheme on employee commitment; and assess the effect of commission-based incentives on employee engagement in pharmaceutical firms in Enugu State. The population of the study consists of nine hundred and thirty-nine (939) staff. To determine the adequate sample size of 273, the study used Freund and William's statistical formula. The study used the descriptive survey design approach. The primary source of data was the administration of questionnaires. Two hundred and thirty-eight (238) staff returned the questionnaires and accurately filled them. Data were presented and analyzed using mean score, and Z-test was used to test the hypotheses. The findings indicated that: Profit-sharing schemes had a positive significant effect on employee commitment in pharmaceutical firms, Z = 8.945, P < .05; and commission-based incentives had a positive significant effect on employee engagement in pharmaceutical firms, Z = 9.140, P < .05. The study concluded that Profit-sharing schemes and Commission-based incentives have no effect on employee commitment and employee engagement in pharmaceutical firms. The study recommended, among others, that Pharmaceutical firms should implement well-structured and transparent profit-sharing schemes to ensure employees clearly understand how their contributions impact organizational profits, thereby strengthening their commitment, loyalty, and long-term engagement.