Employee Benefits and Their Effects on Employee Productivity (A Case Study of First Bank Nigeria Plc, Uyo Branch)
Chapter One
RESEARCH OBJECTIVES
The main purpose of this study is to examine the impacts of employee benefits on the performance of an employee in an organization. However, in line with the main objective of the study, the specific objectives are:
- To identify employee benefits packages offered to the employees of First Bank, Uyo.
- To evaluate the design and implementation of employee benefit plans/ policies of First Bank, Uyo.
- To examine the effects of identified employee benefit packages on the overall performance of the employees of First Bank, Uyo.
- To suggest better employee benefit packages and plans to the management of First Bank, Uyo.
CHAPTER TWO
LITERATURE REVIEW
INTRODUCTION
In this chapter, the researcher will review existing literature generally on employee benefits and narrow it down specifically to impacts it has on employee productivity and performance in an organization. Various concepts of employee benefits, relations and productivity are discussed, and previous and recent researches on employee relations and its effect on productivity are well outlined and stated.
DEFINITIONS
An employee is defined as an individual who works part-time or full-time under a contract of employment, whether oral or written, express or implied, and has recognized rights and duties. The individual is also called worker (Simmons, 2005).
Gideon (2001) in his book titled ‘Motivating employees the right way’ states that ‘employment is a contract between two parties, one being the employer and the other being the employee. An employee may also be defined as: “A person in the service of another under any contract of hire, express or implied, oral or written, where the employer has the power or right to control and direct the employee in the material details of how the work is to be performed.” An employee contributes labour and expertise to an endeavour of an employer and is usually hired to perform specific duties which are packaged into a job. In most modern economies, the term “employee” refers to a specific defined relationship between an individual and a corporation, which differs from those of customer or client. Other types of employment are arrangements such as indenturing which is now highly unusual in developed nations but still happens elsewhere. An employer’s level of power over its workers is dependent upon numerous factors, the most influential being the nature of the contractual relationship between the two. This relationship is affected by three significant factors: interests, control and motivation. It is generally considered the employers’ responsibility to manage and balance these factors in a way that enables a harmonious and productive working relationship. Employer and managerial control within an organization rests at many levels and has important implications for staff and productivity alike, with control forming the fundamental link between desired outcomes and actual processes. Employers must balance interests such as decreasing wage constraints with a maximization of labour productivity in order to achieve a profitable and productive employment relationship.
According to Simons (2005), employee benefits (also called fringe benefits, perquisites, perqs or perks) are various non-wage compensations provided to employees in addition to their normal wages or salaries. In instances where an employee exchanges (cash) wages for some other form of benefit is generally referred to as a ‘salary packaging’ or ‘salary exchange’ arrangement.
In most countries, most kinds of employee benefits are taxable to at least some degree. Examples of these benefits include: housing (employer-provided or employer-paid), group insurance (health, dental, life etc.), disability income protection, retirement benefits, day care, tuition reimbursement, sick leave, vacation (paid and non-paid), social security, profit sharing, funding of education, and other specialized benefits.
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
This chapter involves methodology of the research. It shows or describes the various procedures, techniques and various methods adopted in collecting the data and analyzing the data collected. This methodology is presented in the following order; the study site, the study population, sampling technique, sampling plan, sample size, procedures and data collected method, primary data.
STUDY AREA
The study area for this research is Uyo, in Akwa Ibom state of Nigeria. The main reason for choosing this area is due to the fact that literacy rate in the area is relatively high, and such respondents will be able to give accurate answers to questions asked in the questionnaire.
RESEARCH DESIGN
For the purpose of this study, the casual research design was used to give a more accurate and un-biased findings. Since the researcher went out to find out the effect of one variable on the other, it became necessary to discard other research designs, and go for casual which is the most accurate for this type of study. The researcher also selected the research design based on large variety of methods, techniques, procedures, and sampling plan.
RESEARCH POPULATION
The total population for the study is made up of the employees of First Bank – Uyo, and its customers. The total population for the employees is twenty (25).
CHAPTER FOUR
DATA ANALYSIS AND INTERPRETATION
INTRODUCTION
This chapter present the data gathered by the researcher. The data presented here are those collected from the primary and secondary sources of data through the questionnaire prepared and administered by the researcher.
CHAPTER FIVE
FINDINGS, CONCLUSION AND RECOMMENDATIONS
SUMMARY OF FINDINGS
The first objective of the study was to find out the various employee benefits and incentives that exist in First Bank Plc, Uyo branch. Findings from the study revealed that employees in the bank are being given basic benefits employees in any organization deserve (See Table). The various benefits that exist in the bank are only reserved for the permanent staff of the bank as contract and casual staff so not benefit from the incentives. Employee benefits revealed from the study include paid leave allowances, car loans, Christmas bonuses and performance bonuses (See Table).
Concerning the second objective of the study, researcher found out that the employee benefit policies and plans are drafted by the human resource unit of the organization (See Table ). This implies that the organization has a specialised department for monitoring and taking care of the welfare of its staff. Since there is an HR department in the bank, employee benefit packages are designed and implemented in a manner to suite and satisfy employees and to increase productivity.
The study also established the fact that employee benefits have great effect on productivity levels of employees (See Table). The study also revealed that employees work harder and can go extra miles for the organization if they are being paid higher salaries and allowances (See Table). Respondents agreed that they will be more efficient their pay is increased.
CONCLUSION
The study was aimed at examining the effect of employee benefits on the productivity of employees of First Bank Nigeria Plc. Uyo branch. The study brought out a clear fact that financial benefits are the main motivation behind employee productivity. Since employees were ready to leave their current jobs for better pay elsewhere, the researcher came to conclusion, that money is a major motive among workers in Nigeria.
RECOMMENDATIONS
The following suggestions would be made to guide management in trying to evolve an effective motivational policy for their workers.
Managements should see the general welfare of workers as an important factor to be considered in trying to motivate them to work harder.
Employees should be encouraged to see themselves as an integral part of the organisation. Where possible, they should take part in making decision where such decisions affect them.
The following suggestions should also be considered:
- Employees who are due for promotion should be considered.
- Pay package should be reviewed regularly.
- Initiate one standard for everyone equity.
- Rewards should be a function of actual performance.
BIBLOGRAPHY
- Bhatia E.S., (2004). An empirical study of EDI trading partner selection criteria in employee-employer relationships. (India: Trinity Press) p.7-20
- Coffman P.G., (2004). The employee-organization relationship, organizational citizenship behaviours, and superior service quality. (Chicago: Crystal Publishers).
- Daniel D.D., (2005). Learning orientation, firm innovation capability, and firm performance. Industrial Marketing Management (New Orleans: Jeff Publishers) p.61-68
- David D.W., (2002). The role of sharing in the circulation of knowledge. Futures 28(8), 771–779.
- Desmond K.N., (2009). Development of a case based intelligent employment relationship management system. (New York: Pine Press)
- Fashola K.O. (2007). Managing Conflicts in Organizations (Kaduna: Amadu publishers) p.147–167.
- Frankford (2001). Ontology for information management: balancing formality, stability, and sharing scope. Expert Systems with Applications 23, 357–366.
- George (2008) Making the most of supplier relationships. Industrial Marketing Management 29, 305–316.
- Gideon O., (1999). Communication, procedural justice, and employee attitudes: relationships under conditions of divestiture. ( Canada: ED Educational publishers)
