Assessing the impact of remuneration on employees’ performance in higher institutions of learning: a case study of Makerere University, Uganda.

Abstract

The aim of this study was to establish and assess the impact of remuneration on employees’ performance in higher institutions on learning in Uganda, particularly at Makerere University. Literature review was done on impact of remuneration on employees’ performance in higher institutions of learning at global, regional and national level. However, the case study focused on Makerere University, Kampala. The guiding theory was Adams' Equity Theory which states that positive outcomes and high levels of motivation can be expected only when employees perceive their treatment to be fair. Both literature and empirical review revealed a significant impact of remuneration on academic and administrative staff performance at Makerere University. In other words, high level of employees’ performance is accounted on good remuneration and low-level performance on poor pay. The study revealed that the major cause of the poor remuneration of staff is due to government’s underfunding to the University and the continued budget cuts. The study recommends that on addition to enhancing monthly salary, Makerere University Management should supplement it with other benefits such as incentives, extra load pay, recognition award for higher performers and career advancements. This would improve performance among all staff at the University. It would also curb the frequent strikes due to poor remuneration and labour turn over especially the brain drains