The Impact of Salary Increase and Fringe Benefits Among Nigerian Workers
CHAPTER ONE
PURPOSE OF THE STUDY
It is expected for any research work to provide answer to a particular problem. In view of this, this project tends:
- To examine the effect of salary increase and fringe benefits among Nigerian workers.
- To highlight the problems that are inherent in increasing the salaries of workers who work in the public sector.
- To identify and correct the environmental factor that affects the salary increase and fringe benefits of workers.
CHAPTER TWO
REVIEW OF RELATED LITERATURE
Introduction
The Nigeria civil service is the most important sector of the nation‟s economic system. The Nigeria civil service have been observed to be performing abysmally poor in the political and socioeconomic transformation of the country Its maladies include gross inefficiency and ineffectiveness, to bribery and corruption. There have been persistent decline in the productivity of the civil service. Efforts in transforming the civil service and other government institutions for effective and efficient service delivery has, no doubt in recent times become one of the most pressing fundamental pre-occupations of government. The above problems in civil service have led to series of industrial actions in Nigeria and massive agitation for increase in worker’s salaries, remuneration and other conditions of service. It has also informed the setting up of not less than seven public service review commissions, the Goru such commission of 1954, Mbanefo commission of 1959, Morgan commission of 1964. Others are Elwood commission of 1966, Adebayo of 1971 and Udoji commission of 1974. It will be recalled that the idea of wage and fringe benefits is as old as the colonial civil service. The colonial masters paid the civil servants wages and provided fringe benefits for them ranging from decent accommodation at Government Reserved Areas (GRA) to official cars that were chauffeur driven cooks, stewards and gardeners (for white civil service administrators) which they did not have to pay for from their salaries. The benefits provided were intended to make them productive. These benefits were inherited by indigenous civil servants until government felt that cost of providing and maintaining them was becoming enormous. For instance between 2001 -2003 government expended N186,512,385.98 on renovation of government houses.
CHAPTER THREE
RESEARCH METHODOLOGY
Research design
The researcher used descriptive research survey design in building up this project work the choice of this research design was considered appropriate because of its advantages of identifying attributes of a large population from a group of individuals. The design was suitable for the study as the study sought to examine the impact of salary increase and fringe benefit among Nigerian workers.
Sources of data collection
Data were collected from two main sources namely:
Primary source:
These are materials of statistical investigation which were collected by the research for a particular purpose. They can be obtained through a survey, observation questionnaire or as experiment, the researcher has adopted the questionnaire method for this study.
Secondary source:
These are data from textbook Journal handset etc. they arise as byproducts of the same other purposes. Example administration, various other unpublished works and write ups were also used.
CHAPTER FOUR
PRESENTATION ANALYSIS INTERPRETATION OF DATA
Introduction
Efforts will be made at this stage to present, analyze and interpret the data collected during the field survey. This presentation will be based on the responses from the completed questionnaires. The result of this exercise will be summarized in tabular forms for easy references and analysis. It will also show answers to questions relating to the research questions for this research study. The researcher employed simple percentage in the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain the impact of salary increase and fringe benefits among Nigerian workers.
In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the impact of salary increase and fringe benefits amongst Nigerian workers.
Summary
This study examined the effects of wages incentives and fringe benefits on the productivity of Nigeria workers, a study of Enugu State local government service commission. It is noted that the ability of an organization to achieve its goals of high productivity depend to a large extent on human resources as well as how effectively they managed workers. The workers should be adequately motivated for enhanced productivity. It was highlighted that the poor performance, lack of dedication and commitment of workers have been a matter of concern and debate among government officials, private organizations and the general public. How to improve the productivity of employees has been the topic of many seminars, symposia and conferences.
Conclusion
This study aimed at investigating the effects of wage incentives and fringe benefits on the productivity of workers of Enugu State local government service commission with a view to finding out whether their wages/salaries were adequate, regular and whether the level of fringe benefits in the commission boost workers morals for high productivity or not and whether workers’ salaries/wages were determined by collective bargaining. As we earlier stated, the payment of good salaries and wages is fundamental to the increase in the productivity of employee. Therefore a suitable payment system is a prerequisite for effective performance. In other to motivate people to put maximum efforts, it is essential that there various needs, especially as it concerns wages/salaries and other fringe benefits; be satisfied as far as practicable. In Nigeria, the salary structure falls below the level to maintain efficiency. It is not in line with the economic realities. According to Papola (1970) “a just minimum wage to maintain not only the life but the health and the vigor of the working people is a law of necessity and knows no other law”
Recommendation
The necessity for managers and administrators to motivate their employers through wage/salary incentives and other fringe benefit cannot be over-emphasized. There is no doubt that the ability of any organized enterprise and, indeed any group, to achieve its goals depends to a large extent on the motivation if its employers. Indeed no management or government can succeed in achieving optimal productivity without knowing what the people want. This study has revealed that the low productivity of workers in Enugu State local government service commission was as a result of lack of regular salaries/wages, inadequate salaries/wages, low level of fringe benefits and absence of collective bargaining process in the corporation.
In the light of the above, the under listed recommendation are being made to improve the productivity of Nigerian workers in general and that of the workers of Enugu State local government service commission in particular. There should be periodic upward review of worker’s wages/salaries and other fringe benefits through collective bargaining process. The economic realities of the time should be considered during the process. The issue of paying regular salaries to workers should be considered as a priority by the government. A worker depends on his/her monthly salary for the upkeep of his family. So of it doesn’t come at the end of the month, they are devastated. So there should be strong and effective legislation on this matter.
Reference
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