Assessing the effect of employee welfare and compensation on organizational performance: a case of Sahel Sahara Bank Ghana limited

Abstract

The employee rewards policy of any organization shapes behavior and work patterns, playing a significant role in organizational development. This is because such policies dictate the level of motivation necessary to achieve both individual and corporate objectives. The primary asset of any organization is its human resources. In assessing an organization’s overall performance, placing emphasis on retaining a skilled and productive workforce is crucial. Highly motivated employees contribute value to the organization by effectively accomplishing their goals and objectives. This article aims to determine the presence of a relationship between these variables and assess the extent to which compensation and employee welfare influence the organization’s performance. The research adopted a descriptive research approach, utilizing both qualitative and quantitative data to provide a comprehensive depiction of the specific details pertaining to the selected organizations. For this research, the entire population of 30 respondents from the organization was sampled using a stratified random sampling technique to ensure that the desired conclusions could be drawn. This research employs a correlational design as its research design. Data collection involved gathering information from both primary and secondary sources, with the administration of questionnaires for the acquisition of primary data. The findings derived from the research indicated that an effective compensation and employee welfare system is the backbone of all policies concerning the acquisition and utilization of human resources which in the long run influences the performance of the organisation. The study recommended the need for management to employ positive techniques to encourage high performance from staff and management to ensure equity in the distribution in employee welfare and compensation packages.

Keywords:

• Compensation
• employees’ welfare
• organisation
• performance
• bank

SUBJECTS:

• Employment Relations

REVIEW EDITOR:

• Huifen (Helen) Cai, Middlesex University Business School, United Kingdom

1. Introduction

In the age of extensive globalization, fluctuating market economies, intense competition, and rapidly evolving environments, the prosperity and expansion of an organization hinge significantly on the performance and well-being of its employees. The fundamental vitality of any firmly established organization lies in the competence of its human resources. (Punch & Sugden, 2013). Organizations are formed with the goal of efficiently utilizing diverse human and non-human resources to attain specific objectives.

However, the inadequate focus on the proper welfare and compensation of employees by many organizations often results in adverse effects on organizational performance (Pamela et al., 2017). The absence of motivation for employees to perform satisfactorily can hinder both the performance and the growth trajectory of the organization over time. Any organization aspiring to achieve ongoing success and growth must, therefore, prioritize ensuring that its human resources are well-motivated and satisfied to operate at their optimum level (Fernet et al., 2012).

In accordance with Human Resource philosophy, employees constitute vital business resources that require careful management to optimize returns on investment and attain organizational objectives. Prioritizing a healthy and safe working environment, addressing staff welfare, and addressing motivation and productivity issues are crucial considerations for every organization (Montoya Agudelo & Boyero Saavedra, 2016). To foster employee fulfillment in the workplace, organizations should offer the necessary compensation and welfare benefits. This approach encourages employees to be more willing to dedicate their time, energy, skills, and technical know-how to contribute to the optimal growth of the organization (Osborne & Hammoud, 2017).

The idea of employee welfare originated from a humanitarian perspective, aiming to address the hardships faced by the working class. Over time, it evolved into a utilitarian philosophy, serving as a motivating force for both labor and those with an interest in it (Pirson & Dierksmeier, 2014). Welfare embodies a corporate attitude or commitment demonstrated through explicit care for employees at all levels, influencing both their work and the environment in which their work is carried out (Farooq et al., 2014). It focuses on the overall well-being of employees, encompassing both their work and personal lives. It involves the efforts made by employers to enhance the quality of life for workers. In contrast, compensation pertains to the output and benefits employees receive, including pay, wages, and monetary rewards aimed at incentivizing improved performance (Ek & Mukuru, 2013).

The success of many organizations is not solely attributed to competitive products or advanced technology. More importantly, it stems from effective management that creates an enabling environment and provides incentives, motivating employees to enhance their performance (Hana, 2013). Prioritizing employee welfare is imperative for any organization aiming for growth. By offering a conducive environment and improved compensation, employees are highly motivated, potentially positively impacting the organization’s performance and productivity, all other factors being equal. Any employee that feels contented at the workplace will automatically deliver their best, boosting the productivity and growth of the organization (Morgan, 2017). To stay competitive in the contemporary marketplace, organizations must focus on retaining their human resources to boost productivity. Retention involves providing competitive compensation (both direct and indirect) and attending to their welfare, fostering a work environment that encourages heightened effort and increased productivity. Recognizing an interdependent relationship between organizational performance and employee performance, organizations are continually striving to enhance the overall effectiveness of their workforce (Akala, 2012).

Some argue that employees shouldn’t require coercion to give their best; when working in conducive conditions and experiencing high job satisfaction, optimal performance should come naturally (Knecht, 2014; Muo, 2013; Ireri, 2015). Considering this context, the researcher aims to investigate how employee welfare and compensation influence organizational growth. The intention is to bring attention to this matter and propose suitable approaches for the management of numerous organizations and human resource practitioners in addressing challenges related to the subject of study.

Individuals possess diverse needs that they anticipate fulfilling. According to Abraham Maslow’s theory, people are driven to fulfill specific needs, and certain needs take precedence over others. Consequently, employees seek to satisfy their needs within the work environment to experience motivation for optimal performance (Green et al., 2017).

Over the years, certain organizations have considered employee welfare and compensation as an added expense or a form of liability to their operations. Consequently, they may not adequately compensate their employees, and when they do, they may not offer suitable welfare packages related to working conditions. Often, the efforts made to compensate and address an employee’s welfare do not proportionally match the effort and skills contributed by the employee to the organization (Moore & Viscusi, 2014). Koehler et al. (2016) emphasized that the presence of even one discontented employee or an employee harboring grievances can potentially spread discontent throughout an entire organization. This, in turn, leads to lower efficiency, diminished morale, and an overall reduction in production.

It can be asserted that numerous organizations prioritize resources like materials, machinery, and profit over human resources. The research is inspired by the numerous complaints from employees at Sahel Sahara Bank regarding unsatisfactory compensation packages and inadequate welfare. These employees argue that the provided benefits do not align with the level of effort they contribute to the production process, negatively impacting their morale and performance.

2. Research objective

The research objectives of the study are:

1. Identify the Impact of Employee Welfare on Organizational Performance

2. Identify the Relationship Between Compensation and Organizational Performance

3. Significance of the study

The study on ‘Assessing the Effect of Employee Welfare and Compensation on Organizational Performance: A Case of Sahel Sahara Bank Ghana Limited’ holds significant importance for various reasons:

1. Organisational Improvement: By demonstrating how employee welfare and compensation affect key performance measures, the study offers insights that can help Sahel Sahara Bank’s organisational performance.

2. Strategic Decision-Making: The study’s conclusions can help Sahel Sahara Bank make strategic decisions by assisting in the creation and modification of employee welfare and pay policies that are in line with company objectives.

3. Employee Satisfaction and Retention: Raising employee satisfaction may result in higher retention rates. This can be achieved by educating yourself on the implications of welfare and remuneration. Employees that are content and motivated are more likely to make valuable contributions to the company.

4. Competitive Advantage: Sahel Sahara Bank can gain a competitive edge in the banking industry by implementing effective employee welfare and compensation policies. This can help the bank become more successful overall and improve its reputation in the market by attracting and keeping outstanding individuals.

5. Employee Engagement: Enhanced employee engagement can result from an awareness of how welfare and pay affect performance. Motivated, effective, and devoted to the company are traits of engaged workers.

4. Literature review

In reviewing the relevant literature and documentation of employee welfare and compensation, the researcher seeks to acknowledge the ideas of other authors and bring to light the set of components and their variables that impact on organizational performance and the explanation of terminologies with regards to the topic at hand.

4.1. Conceptual framework

Employee welfare refers to the systematic enhancement of workers’ health, safety, overall well-being, and the cultivation of skills and efficiency beyond the established minimum standards (Choudhary, 2017). Employee Welfare stands as a crucial aspect of organizational relations, providing an additional dimension of satisfaction to workers that goes beyond monetary compensation. As industrialization and mechanization continue to progress, the significance of employee welfare has gained additional prominence. In the face of the accelerated pace of modern life, workers within an organization require more than just basic sustenance amenities to thrive (Sukdeo et al., 2017). An additional incentive is essential to sustain both the physical and mental well-being of the employee. Once the employee has been recruited and trained, specific working conditions must be optimized to enhance motivation for better service to the organization. Welfare facilities are crafted to ensure the well-being of the employee, typically without directly translating into monetary benefits for the employees (McLellan, 2017).

The scope of employee welfare is extensive. According to the International Labour Organization, it encompasses anything undertaken for the comfort, enhancement, intellectual development, or social well-being of employees, exceeding the remuneration they receive (Min et al., 2019). Employee welfare comprises diverse services, facilities, and amenities offered to enhance the well-being of employees (Keitany, 2014). As per Okoye & Ezejiofor (2013), staff development and employee welfare stand as invaluable assets within an organization, aligning with the organization’s overarching goals of productivity and profitability.

There are frequently insufficiently thorough studies in the literature that explicitly examine the complex and subtle relationships between employee welfare policies and how those policies affect an organization’s performance. Although the possible impact of employee welfare on organisational outcomes is acknowledged, more comprehensive research that goes beyond generalisations is required. Moreover, there can be a lack of knowledge regarding the precise aspects of worker welfare that have the biggest impact on the performance of the company. Another significant gap in the literature is the dearth of studies that consider different industries, organisational environments, and cultural aspects (Ko & Hur, 2014; Goebel & Weißenberger, 2017; Kwenin et al., 2013).

Compensation, as per the definition provided by Harvey (2013) refers to ‘the amalgamation of all cash incentives and fringe benefits received by an employee from a company, constituting the entirety of an individual’s total compensation. El-Brolosy & Stainier (2017) defines Compensation as an extensive spectrum of both financial and non-financial rewards provided to employees in recognition of their services to the organization. He elaborates that compensation includes remuneration through wages, salaries, and additional employee benefits such as paid vacations, insurance, maternity leave, free travel, retirement benefits, and more. The compensation package is typically categorized into Direct and Indirect Compensation, encompassing both financial and non-financial rewards (Haque, 2017).

Compensation is a part of human resource management that deals with all forms of rewards that people receive for carrying out organisational responsibilities. The goal is to have happy, motivated employees who are drawn to their work and who will go above and beyond for their company. An employee-employer double input-output exchange (Parashakti et al., 2017). Employee compensation is the benefit they obtain in return for carrying out organisational duties. Pay consists of both direct and indirect salaries. Payroll, bonuses, commissions, commissions based on performance, overtime, and holiday premiums are examples of direct compensation. Indirect compensation includes things like health benefits, housing allowances, meal allowances, utility allowances, incentive bonuses, shift allowances, hospitalisation costs, out-of-station allowances, vehicle loan benefits, yearly leave allowances, basic allowances for cars, and so on (Mytty et al., 2016). The compensationt that employees receive for carrying out organisational duties is known as compensation. Wages, both direct and indirect, constitute compensation. Indirect compensation is paid in the form of medical benefits, housing allowances, meal allowances, utility allowances, incentive bonuses, shift allowances, hospitalisation expenses, out-of-station allowances, vehicle loan benefits, annual leave allowances, car basic allowances, etc. Direct compensation includes wages, salaries, bonuses, commissions based on performance, overtime work, and holiday premium (Tingle, 2017). Compensation has a direct impact on employees’ job satisfaction and performance, making it an important component of personnel management. Compensation affects all members of the organisation to some degree and has the potential to be a very useful and effective tool, whether used knowingly or unknowingly (Gomez-Mejia et al., 2014).

The idea that compensation affects behaviour is one of the fundamental tenets of compensation theory. The fundamental idea came from the work of behaviour psychologists who supported operant conditioning, such B.F. Skinner. Rewarding an organism for a certain behaviour increases the probability that the organism will repeat that behaviour. When individuals in an organisation receive recognition for exhibiting acts that result in favourable consequences, they are more likely to carry out similar actions again. It is noteworthy to acknowledge that a minor portion of the population does not subscribe to these beliefs. Some claim that reward systems cannot effectively regulate or modify human behaviour because it is far too complex. Their reasoning highlights how important it is to comprehend compensation’s function as a tool for fostering employee retention and happiness. Knowing how its compensation system affects the organisation is vitally important. Pay has a significant impact on achieving employee career goals and advancing the profitability of a company. Emphasis has been placed on the need for compensation to be carefully designed. If this is not done, compensation systems may inadvertently fail to encourage the desired behaviour (such as an inefficient compensation plan) or worse, may encourage the undesirable behaviour (such as individualistic behaviour in a team setting) (Skinner, 2014).

The idea that compensation affects behaviour is one of the fundamental tenets of compensation theory. The fundamental idea came from the work of behaviour psychologists who supported operant conditioning, such B.F. Skinner.

There is a dearth of targeted research in the literature on the dynamics of employee welfare and compensation practices at Ghana’s Sahel Sahara Bank. Few research papers thoroughly examine the ways in which Sahel Sahara Bank’s distinct organisational and cultural characteristics impact the relationship between employee well-being, compensation, and overall organisational performance. Furthermore, there is a dearth of study on the long-term impacts of these practices on sustained performance, and a more sophisticated comprehension of the ways in which employee happiness and perceptions influence organisational outcomes is required in Ghana’s banking industry.This paper strives to examine the impact of employee welfare and compensation on organizational performance. Drawing upon the literature reviewed by the researcher, It is inferred that the performance and productivity of the organization are contingent on the independent variables, constituting a blend of compensation and employee welfare.

4.2. Empirical framework

Recent research has examined employee welfare and recommended that lack or inadequate welfare package to the employees limits the social and organizational conditions of workers and impact on their productivity (Elson & Pearson, 1981). It could impact also on the team spirit which according to Vallas (2003) limits ‘the firm’s ability to provide an overarching normative or moral framework within which workplace change might unfold, leaving team systems vulnerable to anomic tendencies, to status distinctions among employees and to other sources of instability’. The study of Chirdan et al. (2009) showed that workers will be more motivated to do their work if salaries are competitive and market related, if the management supports staff welfare and encourage ‘managerial support for staff career development, availability of tools and consumables in the workplace, progress towards personal professional goals appear to play a role in worker motivation.’ Regarding the issue of realization of the incentives and welfare suggested by Chirdan et al. (2009), there needs to be administrative will on the part of the employers to implement and political will on the part of the regulator to compel and enforce compliance and performance.

Omotayo (2014) analyzed the impact of compensation system on the job performance of employees and this study was conducted on preferred private institutes in Ogun State, South- West Nigeria by using questionnaire. From his findings, he concluded that institutions which had more appropriate compensation packages demonstrated an affirmative effect on employee’s performance. This also brought about satisfaction and causing employees to become sincere with their job and stay in organization. Muhammad (2014) studied on the impact of compensation on employee performance and organizational commitment by using SPSS as a statically tool, he concluded that Compensation in the form of incentives, salaries will perform an important part to enhance motivation of employees in Local Revenue Management.

Rafique et al. (2011) studied the extent to which compensation management can be used as a tool for improving organizational performance in a typical public-sector organization in the Anambra State of Nigeria by using questionnaires and concluded that the outcome of the hypothesis reveals that the reform programs of the Anambra State Government have not had a significant effect on financial compensation policies and practices in the civil service. Nazir et al. (2013), checked that what is the degree of organizational dedication and job satisfaction presently in the United kingdom’s higher education sector and universities by using correlation technique and concluded that United Kingdom Higher Education sector propose both cash and non-cash basis rewards to members of organization and makes them capable as it counts that the member of organization are social agents. Employees want to be convinced that their employers are interested and committed to their welfare before they can bring out their all in the service of the employers and ensure the organization’s success. Every employee wants a caring organization. Amah (2010) believes that loyalty of the employees can be sustained when they get more than just a salary.

From the literature review, the variables that were established for the study are Independent Variables and these comprises of

• Direct Compensation; Salary, Wages

• Indirect Compensation; Fringe benefits

• Statutory Welfare: Basic amenities backed by law; Social security, occupational health, safety, and environment.

• Voluntary/Non-statutory; Personal Health Care, Employee Assistance Programs

4.3. Dependent variable

Organizational performance

The independent variables form the core drivers of the dependent variables, and the proper management of the independent variables will in the long run have a net effect on the dependent variable.

5. Methodology adopted for the study

This study is descriptive research employing both qualitative and quantitative data. To enable the researcher to address the objective of the study, descriptive research was the preferred choice since it is meant to describe or give a full picture of the specific details of the selected organizations.

5.1. The study population

The research targeted the staff of Sahel Sahara Bank, comprising individuals from different departments. These departments included the Operations department (7 staff members), Business Promotion department (6 staff members), Credit and Debt Recovery department (2 staff members), Treasury department (2 staff members), Risk department (2 staff members), Human Resource department (3 staff members), Accounts department (2 staff members), Foreign Transaction department (2 staff members), Audit department, and IT department (2 staff members each). The study units consisted of the staff selected from these diverse departments for the research’s purpose.

5.2. Sample size and sampling technique

In crafting the research study, the researcher considered the necessity of drawing inferences from a sample of the population to address the research questions and fulfill the research objectives. The sample size comprised 30 respondents selected from the organization, encompassing various departments. The distribution of respondents across departments was as follows: Operations department (7 staff members), Business Promotion department (6 staff members), Credit and Debt Recovery department (2 staff members), Treasury department (2 staff members), Risk department (2 staff members), Human Resource department (3 staff members), Accounts department (2 staff members), Foreign Transaction department (2 staff members), and Audit and IT departments (2 staff members each).

The collection of data for this research employed stratified random sampling, ensuring the selection of respondents from each unit or stratum.

5.3. Source of data collection

The sources of data for this research were primary and secondary data collection. Primary data is known as the data collected for the first time through field survey (Sutton & Austin, 2015).). Data is gathered with predefined objectives to evaluate the status of the variables under study. The primary data collection predominantly employed a questionnaire as the main tool, consisting of both open-ended and close-ended questions (Linaker et al., 2015). The questionnaire served to gather information regarding the influence of compensation and employee welfare on organizational growth. Additionally, the researcher incorporated secondary data into the study. Secondary data encompasses information that has already been collected and is readily available from various sources, whether published or unpublished. Essentially, secondary data enhances the researcher’s comprehension of the topic, providing a clearer perspective and incorporating other viewpoints on the study.

5.4. Instruments for data collection

To conduct this research, data were gathered through a survey questionnaire. The questionnaire was crafted with appropriate inquiries, incorporating modifications from related research and questions developed by the researcher. Comprising 36 questions, the survey delved into participants’ perceptions regarding the impact of compensation and employee welfare on organizational performance. The questionnaire was chosen due to the dual nature of the study, encompassing both quantitative and qualitative aspects. It included a mix of open-ended and close-ended questions, incorporating various types such as open-ended and close-ended questions.

1. Open ended questionnaire: An open-ended question gives the respondents complete freedom to decide the form length and detail of the form.

2. Close ended questionnaire: The close-ended question is of two types they are as follows:

3. Dichotomous question: This type has only two answers in the form of ‘YES’ or ‘NO’

4. Multiple – choice question: In this case, the respondents are offered two or more choices, and the respondent must indicate which is applicable in the following cases.

5. Likert Scale

It is the most widely used approach to scaling responses in survey research, such that the term (or more accurately the Likert-type scale) is often used interchangeably with rating scale.

5.5 Method of data presentation and analysis

The data presented was analyzed using percentages. The data collected from respondents were carefully checked and edited. Individual items on the questionnaire were edited with regards to the responses given; the study was aided using the data analysis program known as Statistical Package for the Social Sciences (SPSS) Version 23.

6. Data presentation and analysis

In determining the relationship between compensation, employee welfare and organizational performance, the researcher enquired from the respondents whether there is any relationship between these variables. The responses obtained from these sampled employees on the above subject matter can be seen in Table 1.

Table 1. Relationship between compensation overall performance of organization.

Responses	Frequency	Percent	Valid Percent
Yes	24	80.0	80.0
No	3	10.0	10.0
Somehow	3	10.0	10.0
Total	29	100.0	100.0

Source: Field data, 2017.

Respondents were asked whether they perceived any relationship between compensation and employee welfare vis-à-vis the overall performance of the organization and majority representing (80.0%) of the respondents were of the view there exist a relationship, (10.0%) each of the remaining respondents responded ‘no’ and ‘somehow’ on the existence of a relationship.

Inferring from the responses provided in Table 1, majority of the respondents which represented (80%) of the respondents held a strong view of an existence of relationship between the variable. It was determined from the survey that the performance of the organization has a bearing on the effort put into the organization by the employees; therefore, as employees are adequately provided for by management, there is the possibility of employee satisfaction at the workplace. Positive compensation influences employees to give out their best especially if they have the notion that the more, they work, the higher they receive compensation. When the environment is conducive enough, the employee enjoys peace of mind and focuses on meeting targets as expected. The compensation and welfare packages being enjoyed in Sahel Sahara Bank can also be said to exhibit similar relationships with the performance of the bank since the two factors (compensation and employee welfare) act as a motivational tool or catalyst for the employees to give off their best in performance.

The finding corroborates with Lai et al. (2011) that an efficient compensation system results in organizational growth, expansion and exhibit a positive relationship between employee satisfaction and performance.

Many human resource commentators have argued about the role compensation plays in aligning employee behaviour with business objectives. To them this can be attributed to pay, rewards and other incentives received by employees for their performance. In authenticating the views of these human resource practitioners, questionnaires were sent to the sample employees of the bank to solicit their views and their responses can be seen in Table 2 below:

Table 2. Roles of compensation in meeting business objectives.

Responses	Frequency	Percent	Valid Percent
To meet the employer’s legal Obligation	5	16.6	16.6
To encourage employees to work hard	6	20.0	20.0
To help employees meet basic needs	6	20.0	20.0
To enhance the organization’s image	6	20.0	20.0
All the above	7	23.3	23.3
Total	30	100.0	100.0

Source: Field data, 2017.

From the table, (23.3%) of the respondents believed that all the options provided by the researcher were some of the reasons why there was a need for compensations. (20.0%) each believed compensating employees turned to encourage employees to work hard, help employees meet basic needs and to enhance the organization’s image overall. The rest representing (16.6%) of the respondents believed it was out of legal obligations on the company’s part that was why they were being compensated by their employer.

As far as assessing the current compensation packages available in Sahel Sahara Bank were concerned, the researcher consulted the Collective Bargaining Agreement of the institution which was provided by the Human Resource Department and had brief interviews with some members of the management, namely the head of operations, human resource, and finance. The researcher also consulted the administrative policy manual and code of ethics of Sahel Sahara Bank for the information required. The consultation revealed that fuel allowance was only available to both senior and junior staff of the bank who owned vehicles. This is a small allowance added to the salary of those individuals. This is also a policy that is instituted by the bank as an incentive to those individuals who own cars. It is stated clearly that it also depends on the institution’s ability to pay such packages. Regarding vacation or annual leave, every employee is entitled to a minimum of fifteen (21) working days per calendar year as annual leave as per the labour laws but specifically as relates to the practice in Sahel Sahara Bank, depending on your grade and qualification you are entitled to between 25 to 40 working days per year as mandatory annual leave. Employees with the qualification of Higher National Diploma (HND) and above are entitled to 36 working days while those with qualifications below the HND get 28 and 21 working days annual leave per calendar year.

There is also provision for casual leave for staff that requires short periods for personal business and would not want to take the full annual leave, but this is however deducted from their entitlements on annual leave. The policy also make provision for staff who might not have work for the mandatory one calendar year to qualify for annual leave by providing compassionate leave, the amount which is left at the discretion of the human resource managers. Talking about the free medical insurance, employees of the bank get reimbursed for any medical bills they incur during the time they remain employees of the bank. The bank employees are covered by a certified private health insurer and services that are obtained outside this private health insurance are reimbursed to the employee upon presentation of the receipts which must be from certified health providers. Last regarding regularity of promotion, there exists a promotion guideline which spells out the period of service until one qualifies for promotion to the next level. This guideline was developed by the human resource department of the bank as a guide for promotions at the bank. Employees depending on their grade and specialty will serve between 3- 5 years to qualify for their first promotion and for a period of between 5-13 years for subsequent promotions.

With the above in view, respondents were to indicate which of the compensation packages they were aware of. It was observed that the that 2 out of 5 management respondents (40%) were aware of almost all the compensation packages that were available in the institution and 3 out of 5 (60%) were not aware of some of the packages. This in the researcher’s opinion is a flaw in the system since management members are the policy makers and sometimes implementers. It therefore beholds on every management member to be abreast with all policies concerning the institution hence knowledge of the compensation packages available.

From the interview with the management team, it showed that the unawareness level of both the senior management and middle level management staff was higher than their awareness level. This implies that the employees were not very abreast with the compensation packages available in the organization. According to the organizational structure of the bank which the researcher had assessed during data collection, this category of staff formed the direct policy implementers at the middle level, thus representing management at the various departments. Their role therefore required that they know and understand the policies to interpret to their subordinates.

The awareness levels of junior staff were not any different from the senior management, middle and senior non-management staff. This is a normal trend as stated by Aswathappa (2007) in literature to the tune that they are usually unaware since they are not involved in the policy formulation and therefore make demands to meet their needs. This as mentioned earlier could be an indication that the policy documents that contained these compensation packages may not be available to all employees as should be the case. The focused groups and grapevine then become their source of information concerning these packages. This aligns with the findings of Stringer et al. (2011), suggesting that the typical employee frequently lacks comprehensive insight into their entitled total compensation. This phenomenon is attributed to the management’s limited effort to readily provide such information to employees.

With regard whether compensation motivates employees to perform better at the workplace using the study area, the response obtained from the respondents whom questionnaires were distributed can be seen in Table 3 below:

Table 3. Compensation motivates employees to perform better.

Responses	Frequency	Percent	Valid Percent
Disagree	2	6.0	6.0
Neutral	9	30.0	30.0
Agree	11	36.6	36.6
Strongly Agree	8	26.6	26.6
Total	30	100.0	100.0

Source: Field data, 2017.

Table 3 sought to find out whether compensation motivates employees to perform better at the workplace and (63.2%) of the respondents agreed that compensation motivates their work inputs. This implied that when the employee is well compensated, it turns to act as a catalyst (motivation) to boost the performance of the employee. (30%) of the respondents were neutral to the question posed and the final (6.0%) represented the respondents who disagreed with the question posed. Inferring from the table above, it was clear that compensation issues play a pivot role for employees to put up their best and as such should not be ignored by organizations that had set targets for their employees.

7. Conclusion

This research provided an overview and discussion of the effects of employee welfare and compensation on organizational performance. It essentially focused on the perception of employees on the current compensation and employee welfare available in the bank influence these variables on the performance of the employees which is then translated to the performance of the organization overall. The growth and performance of any organizational is linked to the strength and make-up of its human resource and same has been identified in Sahel Sahara Bank. Proper management of employee related issues such as compensation and welfare lead to satisfaction of the employee on the job as well. It has been determined that proper employee welfare packages together with the right compensation package will produce a well-motivated staff that is ready to deliver to optimum. Findings further confirm that an effective compensation and employee welfare system is the backbone of all policies concerning the acquisition and utilization of human resources which in the long run influences the performance of the organization. With regards to the employees being able to assess the compensation and welfare packages in the bank, Management must ensure that employees are trained to be conversant with the policy guidelines on compensation and employee welfare and apply them accordingly.

There is a direct relationship between compensation, employee welfare and organizational performance and management must ensure that they manage these variables (compensation and employee welfare) effectively in such a way that it reflects in a positive outlook on the performance of the bank. Employees perceive compensation and welfare as a motivator to enhance their performance therefore management must show keen interest in those areas of human resource and boost the current level of both compensation and employee welfare in the bank if they want to experience high worker-output that will reflect in a positive outlook in terms of performance for the bank in the long run.

8. Recommendation for the study

It was found out from the study that though there were many compensation and welfare packages available, the employees were not aware of these packages because no avenues were provided to educate them on such packages. It is therefore recommended that the management of the institution should provide for every new employee a copy of the administrative policy manual and code of ethics and discuss the items therein during orientation. For existing employees, periodic workshops and training should be organized to get them educated on the compensation and welfare policies and packages. Despite the willingness of staff to work hard because of the passion they have for their respective professions, the kind of exposure it gives them and the advancement it brings professionally, there should be a well enticing reward system to propel them to go the extra mile in the delivery of their duties. For the marginal number of staff who feels coerced and suffocated on the job schedule and many at times pressurized into a situation they do not fit in, the bank authorities needed to adopt stress management and counseling session for such staff to ascertain the exact problem.

9. Suggestions for future research

Due to the scope and limitations of the study, the researcher recommends that further research should be undertaken encompassing more organizations and more indicators that will help unearth the effect of employee compensation on organizational performance at Sahel Sahara Bank, Head office branch is welcomed. This will help management in the bank to align their strategies for better performance of staff. This will ultimately improve the optimum performance of the bank as the performance of the organization hinges on the performance of the employees all things being equal.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Additional information

Notes on contributors

Isaac Ampong

Isaac Ampong, a lecturer at Christian Service University College, Kumasi-Ghana, specialises in human resource management. A current PhD candidate at the Central University of Technology of South Africa, his research focuse on employee welfare and compensation. Ampong’s publications underscore his dedication to advancing knowledge in his field.