Post-Pandemic Compensation Management And Employee Performance In Nigeria: A Contemporary Analysis

This study examines the evolving relationship between compensation management and employee performance in Nigerian organizations in the post-pandemic era. The research investigates the impact of hybrid compensation models, including performance-based compensation, competency-based compensation, equity-based compensation, and newly emerged wellbeing-based compensation components. The study integrates contemporary theories including the Self-Determination Theory and Job Demands-Resources Model alongside traditional frameworks. Employing a mixed-methods approach, data were collected from 342 employees across public and private sectors in Anambra, Lagos, and Abuja states. The study utilized structured questionnaires, semi-structured interviews, and focus group discussions conducted between September 2023 and January 2024. Quantitative analysis employed multiple regression and structural equation modeling, while qualitative data underwent thematic analysis. Results indicate significant shifts in compensation priorities post-pandemic, with hybrid/flexible work arrangements (β = 0.42, p < 0.01), mental health benefits (β = 0.38, p < 0.01), and digital work allowances (β = 0.35, p < 0.01) emerging as strong predictors of employee performance. Traditional compensation elements remain significant but show reduced explanatory power compared to pre-pandemic studies. The SEM model demonstrated good fit (CFI = 0.94, RMSEA = 0.04) with compensation management explaining 68% of variance in employee performance outcomes. The study concludes that post-pandemic compensation management requires fundamental reconceptualization to address evolving employee needs. Organizations must integrate flexibility, wellbeing, and digital infrastructure into compensation frameworks. We recommend developing hybrid compensation models, implementing regular compensation audits, enhancing transparency in compensation communication, and incorporating employee wellbeing metrics into performance evaluation systems. These findings contribute to developing resilience-oriented compensation strategies for the evolving world of work.