EFFECT OF COMPENSATION ON EMPLOYEE'S PERFORMANCE IN FOTOZILA AFRICA LIMITED, PORT HARCOURT

Abstract The study examines the effect of compensation on employee performance at Fotozilla Africa Limited, a leading photography and imaging company in Port Harcourt. Compensation is a critical factor in employee motivation, reinforcement, satisfaction and productivity, which directly influences the overall organizational performance. This research explores both the monetary (direct) and non-monetary (indirect) compensation elements of salary, benefits, recognition, bonuses, and career advancement opportunities and how they impact on employees’ motivation, engagement and performance outcomes at Fotozilla. The study adopted purposive sampling technique of all 19 employees from all departments with simple percentage analysis, to understand compensation packages of the industry, strategies of motivation and how the company measures employee performance. Results indicate irregular salaries, lack of a pension scheme and unfair compensation rewards. It is suggested that Fotozilla could benefit more by developing a compensation model, emphasising a balanced standard and employee expectation. That the company adopt performance compensation in order to motivate employees and review compensation scheme regularly with employee’s needs to keep key performers and motivate others; to also create feedback mechanisms. By this Fotozilla can strengthen its workforce, increase employee performance and engagement, as well as improve overall organizational output. Keywords: Compensation, Employee, Motivation, Organization, Performance.