Compensation and Employee Productivity in Selected Manufacturing Companies in Rivers State, Nigeria
Uche Chima Richard *
University of Port Harcourt, Rivers State, Nigeria.
Ijeoma Emele Kalu
University of Port Harcourt, Rivers State, Nigeria.
Justice Gabriel
University of Port Harcourt, Rivers State, Nigeria.
*Author to whom correspondence should be addressed.
Abstract
Motivation is pivotal in employees delivering efficiently. For organizations to leap to their goals, employees must be motivated. This ignited this study, as it unearths how compensation affect employees’ productivity. The focal area is manufacturing firms operating out of Rivers State. Compensation was studied using financial, fringe and non-financial benefits and correlated against employees’ productivity indicators (task accomplishment and job quality). We randomly selected 319 employees from a pool of employees engaged at the manufacturing companies. To collect data to test our hypotheses, we administered questionnaire to the 319 employees and the perception analysed using descriptive and inferential approaches. Our correlation results were welcoming and palatable as correlating financial, fringe and non-financial benefits against task accomplishment yielded strong positive correlation. Also, job quality was positively correlated with financial, fringe and non-financial benefits. Our result testifies to compensation being stimulator of employees’ productivity, giving empirical support to theoretical postulations. The recommendations put forward are that a bonus payment system be adopted and should be predicated on performance. To foster career growth, training programmes should be designed and employees trained on courses pertaining to their jobs.
Keywords: Compensation, employees’ productivity, financial benefit, fringe benefit, non-financial benefit