Exploring the Nexus: Rewards Management and Organisational Performance at a Selected Higher Education Institution

Abstract

Rewards management (RM) plays a critical role in shaping performance within higher education institutions (HEIs). Understanding its impact is relevant for enhancing institutional effectiveness. This study aims to examine the effect of RM on the performance of HEIs. It further explores how academic staff respond to financial and non-financial rewards. A quantitative research method was used. Data were collected through structured questionnaires distributed to permanent academic staff at HEIs. Out of 450 distributed, 400 valid responses were returned using simple random sampling. The data were analysed using SPSS version 28. Findings show that both financial and non-financial rewards influence HEI performance. However, academic staff find non-financial rewards more satisfactory. Financial rewards were perceived as insufficient, highlighting a gap between effort and compensation. The study reveals a positive relationship between RM and organisational performance. Effective RM enhances staff motivation and institutional outcomes. The results suggest that HEIs should strengthen their financial reward structures. Management must ensure that rewards align with employee expectations and contributions. Emphasis on financial incentives is crucial, as staff view them as key motivators. This will not only boost individual performance but also support the broader goals of the HEI.