A Critical Examination of Premier Bank's Reward Strategy and Its Impact on Employees Perception of Equity

Abstract

This study examined the reward strategy of Nigerian Banks and its impact on contract and permanent employees perception of equity an under explored field in research particularly from the Nigeria perspectives. This is done by identifying employee's preference for both extrinsic and intrinsic types of rewards available in Premier Bank and the perception of fairness of the rewards. We presented an empirical case study using both survey and interview to collect data from the selected samples of both contract and permanent employees of Premier Bank. A sample size of 100 staff members of the bank was selected for questionnaire distribution with a 90% response rate and 4 interviews conducted for the two categories of employees. A t-test statistics and correlation was used in analysing the survey data while a thematic analysis was used carried out.

The findings from the result indicated that; there is a significant relationship between rewards and equity as both categories of employees perceived the reward strategy to be unfair, but contract staff exhibited an extremely high perception of inequity than the permanent and this is found to have influenced their level of commitment and job satisfaction.  As a result the study recommended  that there is need for an equality or some level of fairness in the way staff are being rewarded particularly the contract staff to build a climate of trust, commitment and retention as it becomes less cost effective expending so much on replacement when only little can keep them. Furthermore, some rewards practice should be extended to the contract staff such as performance related rewards, promotion opportunities, work life balance, training and development and schemes like pension cover and medical services to increase loyalty to the organization.

Eno Amasi Maycock