An Analysis of Compensation Policy Implementation and its Effect on Job Satisfaction and Revenue Generation among Employees in Kaduna State Internal Revenue Services (KIRS), Nigeria

This study analyzed Compensation Policy Implementation and its Effect on Job Satisfaction and Revenue Generation among Employees in Kaduna State Internal Revenue Services (KIRS), Nigeria. The study specifically investigates the relationship between compensation policy implementation and employee job satisfaction, as well as its impact on revenue generation. The study is grounded in Adam's Equity Theory formulated in 1963 by workplace and behavioural psychologist John Stacey Adams. The research adopted a descriptive survey research design to explore the effect of different compensation strategies on employee outcomes. The population of the study consisted of 620 employees of the Kaduna State Internal Revenue Services (KIRS). A sample size of 384 respondents was selected using stratified random sampling to ensure proper representation across various departments within the organization. Data was collected from both primary and secondary sources. Primary data was obtained through structured questionnaires, while secondary data was gathered from relevant documents such as employee records and policy manuals. The findings reveal two key outcomes: first, that performancebased compensation has significantly improved employee morale and performance within KIRS, resulting in better job satisfaction and enhanced revenue generation for the organization. Conversely, the study found that competence-based compensation did not lead to any substantial improvement in employee morale or performance. In conclusion, the study highlights the need for a tailored compensation strategy that emphasizes performance-based incentives to sustain high employee morale and productivity. The following recommendations were made: (i) KIRS should strengthen its performance-based compensation system, tying rewards directly to measurable outcomes to further enhance employee motivation and performance; and (ii) KIRS should reevaluate its competence-based compensation system, possibly integrating more performance-related components to better align with employee expectations and organizational goals.