Performance-Based Allowances and Employee Engagement: Evidence from the Federal Inland Revenue Service (FIRS) in North Central Nigeria

Nurudeen Bello AHMED, Abu ZEKERI &Ahmed Mohammed TAOFIK.

Faculty of Management and Social Sciences, Kwara State University, Malete

Keywords: Performance-based allowances, employee engagement, compensation administration, motivation.

Abstract

This study explored how performance based allowances relates to job engagement amongst the employees of Federal Inland Revenue Service (FIRS) in North central Nigeria. A cross section survey was adopted and 226 employees at Abuja, Niger and Kwara States were surveyed using a structured questionnaire. A total of 208 out of the distributed questionnaires were duly filled and returned, which is a 92% response. Cronbachs alpha coefficient was used to establish the reliability of the instrument at 0.836. The analysis of the data was done through the use of descriptive and inferential statistics, which included regression and correlation analysis. Results showed that there was a strong positive correlation between performance-based allowances and employee engagement (R = 0.714, R 2 = 0.510, F = 214.811, p < 0.05) which means that performance-based allowances explained 51% of the job engagement variance. The findings imply that fair, open, and properly implemented performance-based allowances have a great impact on the motivation, commitment, and productivity of the staff. The research concludes that performance-based compensation plans as applied in a fair manner can be very effective motivational instruments in the governmental organizations. It advises FIRS to institutionalize the existence of clear and open-minded performance-based allowance structures at all the staff cadres with quantifiable standards, regular reviews, and equity in the allocation of the rewards to ensure that it maintains employee engagement and organizational performance.

Published

November 2025

ISSUE

VOL.6.NO.2

Citation

Nurudeen Bello AHMED, Abu ZEKERI &Ahmed Mohammed TAOFIK. (November 2025). Performance-Based Allowances and Employee Engagement: Evidence from the Federal Inland Revenue Service (FIRS) in North Central Nigeria. International Journal of Marketing and Management Sciences,(VOL.6.NO.2), 19 - 51.

APA format

Nurudeen Bello AHMED, Abu ZEKERI &Ahmed Mohammed TAOFIK.. "Performance-Based Allowances and Employee Engagement: Evidence from the Federal Inland Revenue Service (FIRS) in North Central Nigeria." International Journal of Marketing and Management Sciences, vol. , no. VOL.6.NO.2, November 2025, pp. 19 - 51.

MLA format

Nurudeen Bello AHMED, Abu ZEKERI &Ahmed Mohammed TAOFIK.. November 2025. "Performance-Based Allowances and Employee Engagement: Evidence from the Federal Inland Revenue Service (FIRS) in North Central Nigeria." International Journal of Marketing and Management Sciences , no. VOL.6.NO.2: 19 - 51.

Chicago format

Nurudeen Bello AHMED, Abu ZEKERI &Ahmed Mohammed TAOFIK. (November 2025). "Performance-Based Allowances and Employee Engagement: Evidence from the Federal Inland Revenue Service (FIRS) in North Central Nigeria." International Journal of Marketing and Management Sciences, vol. , no. VOL.6.NO.2, pp. 19 - 51.

Harvard format