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This study is an evaluation of the relationship between organizational compensation and employee output in five selected manufacturing firms in south-east, Nigeria.The population for the study was five thousand, and eleven employees (5,011).The study sample size was eight hundred and ninety-five (895) respondents.Questionnaire which was validated by experts was the instrument used for data collection.Some of the major findings is that there is a positive relationship between access to training and employee product quality in the five selected manufacturing firms in South-East, Nigeria (r =.780; p = .000>0.05, n=895); there is a positive relationship between organizational compensation and employees output in the five selected manufacturing firms in South-East, Nigeria (r =.840; p = .000>0.05, n=895).The study concluded that that if employees are well compensated and well trained, it will encourage more productivity and overall output.Consequent upon the findings, some recommendations were made; It is recommended that employees should be given access to continual training of all types just to keep up, firms should invest resources in training and coaching employees, which will, in turn, give their employees a sense of ethical obligation to respond with increased effort, and a desire to stay with the organization to 'repay the debt, Finally, firms should strategically structure their compensation plan accordingly.This can be done informally by asking employees with other companies that you interview about their compensation plan, or more objectively by hiring an outside consulting firm to benchmark their plan against others and advise you on how to adjust it.
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