Beyond Salary Administration: Compensation Practices and Performance Efficiency Among University Nonacademic Staff in Nigeria

This study examined the relationship between compensation practices and performance efficiency among university non-academic staff in Nigeria, using Ambrose Alli University, Ekpoma, Edo State, as its study setting. It specifically investigated the relationships of competitive salary, compensation equity, expectancy-based compensation, delayed payment of salary arrears, non-payment of promotion-related salary and non-negotiated salary deductions with performance efficiency. A descriptive-correlational survey design was adopted. The study population comprised 3,759 nonacademic staff, from which a sample of 362 was determined using Yamane’s formula. A structured questionnaire was administered, and 341 valid responses were analysed, representing a 94.2% usable response rate. The instrument achieved a Cronbach’s alpha coefficient of 0.83. Data were analysed using descriptive statistics and Pearson Product-Moment Correlation at the 0.01 significance level. The findings revealed significant positive relationships between performance efficiency and competitive salary (r = .679, p < .001), compensation equity (r = .739, p < .001), and expectancybased compensation (r = .641, p < .001). Significant negative relationships were found between performance efficiency and delayed payment of salary arrears (r = −.551, p < .001), non-payment of promotion-related salary (r = −.502, p < .001), and non-negotiated salary deductions (r = −.511, p < .001). Compensation equity recorded the strongest positive association, while delayed payment of salary arrears showed the strongest negative association. The study concludes that compensation practices extend beyond routine salary administration and are significantly associated with the performance efficiency of university non-academic staff. It recommends fair and transparent reward systems, competitive remuneration, prompt settlement of staff entitlements and accountable salary administration