Title: Unpacking the 'black box' in the relationship between pay-for-performance, employee benefits and performance

Authors: Abdussalaam Iyanda Ismail; Abdul Halim Abdul Majid; Mohd Hasanur Raihan Joarder

Addresses: School of Business Management, College of Business, Universiti Utara Malaysia, Sintok, 06010 Kedah, Malaysia ' School of Business Management, College of Business, Universiti Utara Malaysia, Sintok, 06010 Kedah, Malaysia ' School of Business and Economics, United International University, Dhanmondi, Dhaka 1209, Bangladesh

Abstract: This research examined the effect of pay-for-performance (PFP) and employee benefits on employee performance with mediating effect of distributive fairness in the nexus. Through a cross-sectional approach, data were collected from a sample of 140 Nigerian employees. Partial least squares (PLS) method algorithm and bootstrap techniques were used to test the study's hypotheses. The results provided support for all the hypothesised nexuses indicating that PFP and employee benefits influence the performance of workers positively. Also, the result showed that distributive fairness mediates the relationship between PFP and employee performance, and between employee benefits and employee performance. The implication is that PFP and employee benefits can boost and enhance employee performance provided distributive fairness is perceived in the reward system that is operating in the firms. Hence, distributive fairness is an inextricable element in any reward system. Limitations and recommendations are discussed.

Keywords: PFP; pay-for-performance; employee benefits; distributive fairness; employee performance; partial least squares; HRM; human resource management; HR architectures; human capital; reward system; compensation; Nigeria.

DOI: 10.1504/JGBA.2018.097135

Journal for Global Business Advancement, 2018 Vol.11 No.4, pp.465 - 490

Received: 20 Dec 2016
Accepted: 17 Mar 2017
Published online: 02 Jan 2019 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article