The main aim of the study was to examine the impact of reward and recognition on job satisfaction and motivation. The specific objectives were to assess the relationship between reward and work motivation and job satisfaction; to identify academic staff’ and administrators’ perceptions about reward and recognition and to explain challenges of reward implementation in private tertiary institutions. The study employed descriptive survey design in gathering data from 157 academic staff, from a total number of seven private tertiary institutions which were selected through stratified sampling. Respondents from these seven private tertiary institutions were conveniently and purposively selected. The study observed that rewards had a positive impact on work motivation but no significant relationship existed between reward and job satisfaction. Again, both academic staff and university administrators perceived rewards as fair. Challenges facing private tertiary were the lack of funds, pressure from unions and other interest groups, existence of many qualified people for rewards at a particular time coupled with academic staff emphasizing direct monetary rewards. Keywords: Compensation, Private Tertiary Institutions, Academic Staff, University Administrators.