REWARD MANAGEMENT AND EMPLOYEE PERFORMANCE: AN EMPIRICAL ANALYSIS OF LOCAL GOVERNMENT UNITS IN ANAMBRA STATE

This study examines the relationship between Compensation administrations and employee performance within local governments in Anambra State, Nigeria. Specifically, it examined the relationship between these compensation factors which are promotion, wages and salaries, and recognition and three dimensions of employee performance: innovative performance, quality performance, and creativity performance. Using a sample size of 446 employees, data were collected through structured questionnaires and analyzed using simple regression analysis with SPSS. The findings revealed a significant positive relationship between promotion and innovative performance (p = 0.000, b = 0.712), indicating that employees who receive timely promotions tend to exhibit higher levels of innovation. A strong positive relationship was also found between wages and salaries and quality performance (p = 0.001, b = 0.654), suggesting that competitive compensation contributes to better work quality. Additionally, recognition was found to have a significant impact on creativity performance (p = 0.000, b = 0.839), with employees who are recognized for their efforts being more likely to engage in creative tasks. These results highlight the importance of effective compensation administration in enhancing employee performance within local governments. The study recommends promoting career advancement opportunities, reviewing wage structures, and implementing robust recognition programs to improve performance outcomes. This research contributes to the understanding of compensation's role in employee motivation and performance