Abstract

Human resource managers in the company have a hard job to do with managing wages and salaries. This area of human resources has a significant impact on an employee’s productivity. However, most employers of labor frequently overlook this factor, which is harmful to the organization’s production because of subpar employee performance. The minimum pay rate, a government interference in wage administration, actually made the precarious position worse.

This study investigates wages and salary administration and employee performance in higher institutions of learning in the Buea municipality. Specifically, the study examined how minimum wage, cash bonus, fringe benefits and incentives affect employee performance.

Cross sectional survey of research design was employed and a total of three higher institutions were studied. 136 employees were sampled. Questionnaire was used as an instrument for data collection. The Binomial Logistics Regression Analysis was used in analyzing the data. The study found that incentives as an element of wage and salary administration has a significant effect on employee performance.

Also, fringe benefits have a significant effect on employee performance in higher institutions of learning in the Buea municipality. On the other hand, the study also found out that government legislation through minimum wage and cash bonus have no significant effect on employee performance in higher institutions of learning in the Buea municipality.

According to the study’s findings, managing wages and salaries effectively has a big impact on how well employees perform. Employers of labor are advised to prioritize their employees’ well-being since it has the power to improve or negatively impact the effectiveness of their institution or organization.

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