Reward System: Does Base Salary Influence the Performance of Academic Staff in Selected Private Universities in North-Central Nigeria?

Abstract

This study investigates how basic salary influences the performance of academic staff at seven selected private universities in North-Central Nigeria. A quantitative survey was conducted among 408 academic staff from these institutions using both simple random and purposeful sampling approaches. By employing multiple regression analysis grounded in efficiency wage theory and education production models, the research explores the relationship between basic salary and various aspects of academic performance, including research output, teaching effectiveness, community service involvement, and collaboration with industry. The findings indicate that higher basic salaries are positively and significantly related to overall performance and research output, implying that better compensation helps attract, motivate, and retain skilled academic personnel. However, the results also show that while basic salary enhances research output, it does not significantly affect teaching effectiveness, suggesting that financial incentives alone are not enough to improve instructional quality. Furthermore, a negative correlation between basic salary and community service involvement was found, indicating that higher compensation encourages academic staff to focus on activities that provide direct institutional benefits rather than community outreach. Conversely, the study identifies a positive link between basic salary and industry collaboration, suggesting that competitive pay encourages stronger engagement with external partners. On a policy level, the research recommends that universities focus on offering competitive basic salaries to draw in and keep top-notch researchers, thereby promoting innovation and enhancing the institution's reputation.