Effect of Employee Compensation on Organisational Performance of Agricultural Firms in Cross River State, Nigeria

Abstract:

Poorly designed employee compensation can weaken organisational performance, particularly in labour-intensive agriculture. This study therefore examined the effect of employee compensation, measured by overtime pay and healthcare support, on the organisational performance (productivity and efficiency) of agricultural firms in Cross River State, Nigeria. A cross-sectional survey design was adopted. The population comprised 2,800 workers in nine agricultural firms selected through stratified sampling, and the Taro Yamane formula gave a sample of 350. Data from 333 usable questionnaires were analysed using descriptive statistics, Spearman rank correlation and multiple regression. The findings show that overtime pay and healthcare support each have a positive and significant effect on organisational performance (p < .01). Consequently, strengthening both compensation components offers a practical and affordable way to improve outcomes in firms where labour is seasonal and turnover is high. The study recommends that agricultural firms in Cross River State adopt structured overtime pay policies and healthcare support services, especially during peak planting and harvesting seasons.