The Effect of Compensation Packages on Employee Commitment in Sterling Bank Plc, Kebbi State
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- NGN 5000
Background of the Study
Compensation packages play a critical role in influencing employee motivation, job satisfaction, and organizational commitment. In the banking sector, competitive compensation packages are essential for attracting and retaining top talent, fostering employee engagement, and ensuring that employees are committed to the organization’s goals. Sterling Bank Plc, with its operations in Kebbi State, is no exception, as the bank seeks to align its compensation strategies with employee expectations and industry standards (Ahmed & Bello, 2024). Employee commitment, defined as the emotional attachment to the organization and its values, is strongly influenced by the compensation and benefits offered.
Kebbi State, with its socio-economic characteristics and workforce challenges, provides an interesting context for exploring the impact of compensation packages on employee commitment. As Sterling Bank competes with other financial institutions in the region, understanding the relationship between compensation and employee commitment is critical for maintaining a motivated workforce and reducing turnover (Junaidu & Tukur, 2023). However, while compensation has been linked to employee satisfaction in various studies, the specific effect on employee commitment in the banking sector in Kebbi State remains less clear.
This study will explore the effect of compensation packages on employee commitment at Sterling Bank Plc in Kebbi State, examining the extent to which financial and non-financial benefits impact employees' attachment to the bank.
Statement of the Problem
Although compensation packages are commonly regarded as a determinant of employee satisfaction and retention, their effect on employee commitment in Sterling Bank Plc, Kebbi State, has not been adequately explored. Understanding how various components of compensation influence employee commitment in this specific context is essential for refining compensation strategies that align with employee needs and organizational objectives (Gado & Ibrahim, 2024).
Objectives of the Study
1. To assess the effect of compensation packages on employee commitment at Sterling Bank Plc, Kebbi State.
2. To identify the key components of compensation packages that most influence employee commitment at Sterling Bank Plc, Kebbi State.
3. To examine the role of non-financial benefits in fostering employee commitment at Sterling Bank Plc, Kebbi State.
Research Questions
1. How do compensation packages affect employee commitment at Sterling Bank Plc, Kebbi State?
2. What components of compensation packages influence employee commitment at Sterling Bank Plc, Kebbi State?
3. To what extent do non-financial benefits contribute to employee commitment at Sterling Bank Plc, Kebbi State?
Research Hypotheses
1. Compensation packages positively affect employee commitment at Sterling Bank Plc, Kebbi State.
2. Financial benefits, such as salary and bonuses, have a significant impact on employee commitment at Sterling Bank Plc, Kebbi State.
3. Non-financial benefits, such as recognition and career development opportunities, contribute to employee commitment at Sterling Bank Plc, Kebbi State.
Scope and Limitations of the Study
This study will focus on employees of Sterling Bank Plc in Kebbi State and examine how compensation packages influence their commitment to the organization. Limitations may include the subjective nature of measuring employee commitment and potential biases in self-reported compensation satisfaction.
Definitions of Terms
• Compensation Packages: The total remuneration offered to employees, including salary, bonuses, benefits, and non-financial incentives.
• Employee Commitment: The emotional attachment and dedication of employees to their organization, often reflected in their willingness to stay and contribute to the organization's success.
• Non-Financial Benefits: Non-monetary incentives that contribute to employee satisfaction, such as career development, work-life balance, and recognition.
