This study examines the impact of employee compensation on job performance in selected donor-funded health organisations in Abuja, Nigeria. The study is motivated by increasing concerns that rigid donor funding structures may limit organisations’ ability to design competitive compensation systems, thereby affecting employee motivation and performance. Grounded in Vroom’s Expectancy Theory, the study conceptualises compensation as a multidimensional construct comprising salary, fringe benefits, and recognition. A quantitative survey design was adopted, and data were analysed using regression techniques. The study finds that salary and benefits have positive but not statistically significant influence on employee performance. However, recognition exerts a comparatively stronger motivational effect in donor-constrained environments. The study concludes that non-financial compensation plays a critical role in sustaining employee performance where financial flexibility is limited. The study recommends the integration of balanced reward systems combining financial stability with structured recognition framework.
Keywords: Compensation, Fringe benefits, Job Performance, Recognition, donor-funded health organisations, salary
