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ABSTRACT
This research work emphasizes on the impact of compensation in organizational performance. The major objective of the study is to ascertain the possible change or impression of compensation in organizational performance and critically examine its impact on organizational productivity. The method adopted by the researcher to collect data was survey research design. The finding of the study showed that management of Edo State Polytechnic, Usen uses both direct and indirect compensation and develop their reward package to improve performance. Thus, it was conduced that compensation system has great impact on organizational productivity. However the researcher strongly recommended that management should try to identify employee’s expectation and use that as an avenue for compensation in a way that it will net inflate organization wages and bills.