research proffers an assessment of the Employees Remuneration, Working
Conditions and Employees Productivity in the Nigerian Banking Industry, a study
of sterling bank. It analyses Employees Remuneration and working
conditions, its functions and
significance .The research projects Employees Remuneration and working
conditions as a unifying factor enhancing employees Productivity towards to the
accomplishment of the aims and objective of the Nigeria banking system.
relevant research questions were analyzed using the chi- square statistical
from the study indicated that Employees remuneration influence on performance
and productivity is significant, Absence of good remuneration packages has
influence on employees productivity in the Nigeria banking industry, and
Promotion of staff premised on favoritism, internal politics, and nepotism
rather than on merit has influence on employees productivity in the Nigeria
on this, the study advised the Nigeria banking industry and sterling bank plc
in specific that employee should be encouraged, motivated by banking industry
and sterling banks in specifics, Nigeria banking industry regardless of their
status should make the incentives activity a priority, Nigeria banking industry
and sterling bank plc in specifics should monitor the progress of their
employees closely, Nigeria banking industry and sterling bank plc in specifics
are equally advised to limit the number of work load and working hour giving to
each employee and the job rotation should be well structured and perfected.
1.1 BACKGROUND TO THE STUDY
Employees are organization’s most
potent resources and the progress, stagnation and backwardness of an
organization depends on the ability of employers of labour to attract, retain,
motivate and reward adequately dedicated and committed employees. Employees’
decision to either stay or leave a particular job lies on the remuneration
package of the organization. In an effort of organization to earn adequate
performance of their employees, there is need for such organization to
implement appropriate incentives packages to gear the employees to their best
performance. The level of job satisfaction of employees and their willingness
to remain in an organization is influenced by the remuneration and motivation
packages of such an organization.
Remuneration can be broadly classified into
two categories, namely, direct and indirect remuneration (Adekoya, etal, 2014).
Direct remuneration, which includes salaries, wages, allowances,
gratifications, commissions and bonuses are financial payment or reward given
to an employee in exchange for his physical and mental efforts. Indirect
remuneration are usually referred to as fringe benefits, which consists of sick
pay, free medical facilities, subsidized meals, company cars, recreational
facilities, redundancy payment and retirement benefits are the additional payment to employees to
motivate them to exude superior performance. Working conditions also refers to
the working environment and all the existing circumstances affecting employees
in workplace. The conditions in which an employee work amongst others, include,
amenities, conduciveness of the physical environment of the working place,
stress, noise levels, degree of safety or danger, workload, hours of work, rest
period and legal rights. Remuneration and working condition packages have a
robust impact on the productivity of employees. An organization with good
remuneration structure and enhanced working conditions tend to earn high
productivity and performance from the employees rather than an organization
that deprives its employees from these incentives.
The remuneration structure of an
organization in all sectors is the driving force that fortifies employees’
effort towards the attainment of organizational goals (Aslam, etal, 2015).
Highly remunerated employees will work assiduously to ensure that they help
their organization achieve its stipulated objectives. In this light,
organizations’ management team has started recently to adopt various kinds of
remuneration packages for their staff, not only for employees’ retention but to
give them a competitive advantage over their rivals in the industry they
Sterling Bank Plc is a full
service national commercial bank ratified and licensed by the Central Bank of
Nigeria. The bank shares trade under the banking sector of the Nigerian Stock
Exchange. The operation of the bank can be broadly grouped into three
categories, namely, Consumer Retail (policy and strategy to offer banking
services to prospective and actual individual customers, provision of micro
credit facilities to small and medium enterprises), Corporate (deal in several
sectors such as power, mines and steel, telecommunication, food and beverages
and the like) and Commercial (provision of banking services to firms at various
levels). The Bank’s heading office is located at Marina, Lagos state and has
about 187 branches, 840 automated teller machines (ATMs), 3567 point of sales
(POS) terminal and 2285 employees across the country (www.sterlingbankng.com).
Commercial banks, like Sterling
Bank, play an important role in the economy of Nigeria. Services provided by
employees of the bank have a lasting perception on the public image of the bank
on the eyes of the bank’s customer. The level of satisfaction of the banks’
customers is dependent on the motivation level of the bank’s employees. In the
21st century, information technology has taken over the operations and
activities in all industry, banking industry inclusive. Most activities in the
bank are done via electric devices, internet, computer and other similar
devices, yet the importance of human resource cannot be ruled out, because
human beings are need to operate these devices. It is not enough for banks to
rely on the number of their employees or their qualifications, but remunerating
them adequately is the only channel to get the best out of them. The key to
enhanced staff performance and gain optimal productivity from them is through
employees’ motivation through proper remuneration and improved work conditions.
1.2 STATEMENT OF
Sterling Bank, a fraction of
the Nigerian Banking Industry is a service delivery firm that is bedeviled with
motivational problems. The way and manner employees are remunerated influences
their performance and productivity. In a situation, where employees are dissatisfied
and discontented with their job, their productivity would be adversely impacted
upon. This indicates that employees are crucial for the growth, profitability,
wealth maximization, survival, continuity, progress and retardation of an
organization, banks inclusive.
It is no gainsaying to
assert that lack of adequate service delivery exists in Nigerian banking
industry, Sterling Bank inclusive, evidenced by absence of good remuneration
packages in the bank. This might have triggered employees to exude superior
performance, had it been Sterling Bank is practicing it.
Finally, the processes of
promotion of staff or employees in Nigerian banking industry, Sterling Bank
inclusive, are not properly done. Promotion of staff is premised on favoritism,
nepotism, bribery, internal politics, lobbying and “bottom power” rather than
on merit. Sometimes, employees’
promotions are delayed. All these makes the employees to feel unhappy about
their job and it will surely slow down their productivity. When promotions processes
are based on merit, the efficiency and effectiveness of employees’ productivity
and performance will be realized and this gives the firm a competitive
advantage over rivals in their banking industry.
1.3 OBJECTIVE OF
1. To determine how employees remuneration influences their
performance and productivity.
2. To determine the reason for absence of good remuneration
packages in the Nigeria bank.
3. To know the Promotion of staff premised on favoritism,
internal politics, and nepotism, bribery rather than on merit influence on employees productivity in
Nigeria baking industry.
1. What influence does employees remuneration have on
performance and productivity?
2. What is the reason for absence of good remuneration
packages in the Nigeria bank?
3. What is the reason Promotion of staff is premised on
favoritism, internal politics, and nepotism, bribery rather than on merit?
H0: Employees remuneration has no
influence on performance and productivity.
H0: Absence of good remuneration packages has no influence on
employees productivity in the Nigeria banking industry.
H0: Promotion of staff premised on favoritism, internal
politics, and nepotism rather than on merit has no influence on employees
productivity in the Nigeria banking industry.
OF THE STUDY
The research shall project
employees remuneration as a unifying factor in enhancing employees productivity
in the Nigerian banking inudustry towards the realization of organizational
aims and objective.
1.7 SCOPE OF THE
The research profers an
assessment of the employees renumeration, working conditions and employees
productivity in the Nigerian banking inudustry: using sterling bank as a case
1.8 LIMITATION OF
During the course of
carrying out the study, several limitations were encountered:
Financial Constraint: Due to the paucity of funds, the study
covered only sterling bank of Nigeria.
A relatively short time was given to conduct a study of this magnitude
in addition to other academic commitment of the researcher.
Unwillingness of the Respondents: Majority of the respondents were unwillingly
to participate in the survey because they feel that is an intrusion to their
Nevertheless, a robust and
fact-finding study was carried out.
1.9 DEFINITION OF
Employees: This known 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. Also called worker.
Employees remuneration: This refers to the reward or
compensation given to the employees
for their work performances. Remuneration
provides basic attraction to a employee
to perform job efficiently and effectively. Remuneration leads to employee
Working conditions: working
conditions cover a broad range of topics and issues, from working time (hours of work, rest periods, and work schedules) to remuneration, as
well as the physical conditions and
mental demands that exist in the workplace.
Employees productivity: Employee
productivity (sometimes referred to as workforce productivity) is an assessment of the efficiency of a worker or
group of workers. Productivity may be evaluated in terms
of the output of an employee in a
specific period of time.