CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
Employees are the assets of any organization and compensation had been seen to be a vital instrument in employee performance. A well rewarded employee feels that he/she is being valued by the company that he/she is working for. They are also encouraged to work harder and better if they are aware that their well-being is taken seriously by their employers, and that their career and self-development are also being honed and taken care of by their company. Employees are the engine of organization vehicles while reward is the fuel. No organization can achieve its stated objectives without its employees (Sajuyigbe, Olaoye & Adeyemi, 2013). Akerele in Sajuyigbe, Olaoye and Adeyemi (2013) blamed the productivity of Nigerian workers on several factors, one of such factors is the employer’s failure to provide adequate compensation for hard work and the indiscipline of the privileged class that arrogantly displays their wealth, which is very demoralizing to working class and consequently reduced their productivity. Markova and Ford (2011) mentions that the real success of companies originate from employees’ willingness to use their creativity, abilities and know-how in favour of the company and it is organization’s task to encourage and nourish these positive employee inputs by putting effective reward practices in place.
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