The impact of compensation on the performance of employees at a bank in Mpumalanga

Abstract

This study investigates the impact of compensation on the performance of employees. A qualitative research methodology was employed in order to understand the fundamental relationship between compensation and performance of employees at Bank X in Mpumalanga. A sample of fifteen (15) respondents at Bank X was selected for the interviews using the nonprobability purposive sampling technique. The data analysis was based on measuring how data was collected from the open-ended questionnaire and analysed. The results indicated that the majority (60%) of employees of Bank X in Mpumalanga viewed compensation and rewards to be important in motivating them to perform and only 20% disagreed with the notion. In addition, the results imply that the majority (67%) of Bank X employees are motivated to perform better when rewarded by compensation. It was concluded, therefore, that performance and motivation are undoubtedly linked. The rewards that drive both of these may be very different and there is no universal system that can adequately be applied across the board. This study recommends that the salary of the employees should be commensurate with the task they carry out, that is, pay should be related to individual performance. The management of Bank X in Mpumalanga should endeavor to re-evaluate the performance objectives of the company and the required standards for the employees to execute their duties in order for them to be more effective and efficient.

To cite: Kgoedi, Tsh. & Pillay, A.S. (2018). The impact of compensation on the performance of employees at a bank in Mpumalanga. Journal of Management & Administration (2018/2), 135–162. https://hdl.handle.net/10520/EJC-128dd0b1ce