Abstract

This study examined compensation administration and performance efficiency among non-academic staff of Ambrose Alli University, Ekpoma, Edo State. Specifically, it investigated perceived fairness, equity and transparency in compensation administration; the perceived influence of compensation benefits, incentives and motivational practices on performance efficiency; and the effects of compensation-related challenges on employee motivation and performance efficiency. The study adopted a descriptive survey design. The population comprised 3,759 non-academic staff, from which a sample of 362 was determined using the Taro Yamane formula. Data were collected through a structured questionnaire measured on a four-point Likert scale. The instrument recorded a Cronbach’s alpha coefficient of 0.83. Of the 362 questionnaires administered, 341 valid responses, representing a 94.2% usable response rate, were analysed using frequencies and percentages. The findings revealed substantial concerns about compensation administration: 93.5% of respondents disagreed that compensation administration was transparent and equal, while 100% agreed that favouritism existed in its administration. Respondents also reported the perceived importance of compensation benefits and incentives, with 100% agreeing that salary increments and insurance benefits promote performance efficiency, and 98.2% affirming the value of bonuses and incentives. Regarding compensation-related challenges, 89.1% agreed that salary arrears reduce morale and productivity, while 95.0% associated delayed salary payments with increased absenteeism. The study concludes that perceived inequities and unresolved compensation challenges may undermine employee motivation and performance efficiency, whereas fairly administered rewards may support improved work outcomes. It recommends transparent compensation procedures, timely payment of entitlements, and strengthened performance-linked reward and staff development systems