The study exammes effect of new minimum
wage on employee turnover intention in public sector. The objective of the
study was to examine the relationship between the new minimum wage and employee
turnover. The survey research method was adopted and a sample size of 68 respondents
was selected from the population of study through stratified random sampling
technique. Questionnaires were administered as the instrument of data
collection and statistical tools were employed for data analysis. Findings of
the research reveal that the new minimum wages is a step in the right
direction. However, the determination of the wages without the input of the
trade union representatives has generated a lot of controversies but does not
have significant negative effect on labour turnover in the public sector. It
was recommended among others that government should desist from the practices
of unilateral determination of wages and salaries in the public sector. Workers
wages should be considered a crucial issue.
1.1 Background to
1.2 Statement of
1.3 Objectives of
of the Study
1.7 Scope and
Limitation of the study
1.8 Definition of
2.2 The Concept
of Minimum Wages
2.3 The Right to
2.4 The New
2.5 Issues and
Challenges of the New Minimum Wage
2.6 Labour Market
Perspective on Salary and Wage Reviews
3.3 Population of
3.4 Sample and
3.5 Instrument of
3.6 Method of
3.7 Method of
3.8 Validity of
of the Instrument
Data Analysis and Interpretation of Results
Characteristic and Classification
4.3 Analysis of
Respondent's View on the Effect of New Minimum Wage on Employee Turnover
Intention in the Public Sector
4.4 Test of
4.5 Discussion of
5.2 Summary of
for Further Studies
1.1 BACKGROUND TO THE STUDY
Organizations invest a lot on their
employees in terms of Induction and training, developing, maintaining and
retaining them in their organization. Therefore, managers at all costs must
minimize employee's turnover. Although, there is no standard framework for
understanding the employees turnover process as whole, a wide range of factors
have been found useful in interpreting employee turnover, one of such crucial
facto is pay (Kevin, 2004).
Pay reform has been an important issue
in public service management throughout the world over the past two decades.
Pay is a significant feature of human resources management, and these resources
are the most crucial factor in the delivery of public services. The economic
crises and the attendant deterioration in service delivery that confronted most
governments in the 1970s and 1980s have brought public service employment and
pay reform at the fore of the policy agenda in virtually every country, except
the mineral-rich exporters, since the early1980s (Kiragu, 2003).
Minimum wage issues have been a major
factor in the determinant of workers stay on the job in the Nigeria public
sector. However, the extent to which workers is satisfied on the job is also
another area of interest in public discuss. Therefore, this study shall be
conducted to examine the effect of minimum wage administration on worker
turnover in the civil sector.
1.2 STATEMENT OF PROBLEM
The minimum wages payable to civil
servants in Nigeria has been review over the years in a bid to better the lots
of the public service workers. However, the review has been met with several
confrontations which often led to series of industrial actions led by the
labour unions in the country.
Recently, the federal government
introduces the new minimum wages designed to offer workers a basic pay of
#18,000. This had generated several controversies as well as many crisis in
form of strike actions, absenteeism, sabotage and many more on the part of the
In the heart of the controversy is the
fact that some state government have refused to honour the agreement. The Lagos
State government is one of those states with strong argument against the
payment of the new minimum wage.
It is therefore pertinent to investigate
how the new minimum wages have affected employee turnover in the Lagos state
1.3 OBJECTIVES OF THE STUDY
The primary objective of the study is to
examine the effect of the new minimum wage on employees' turnover in Lagos
State. However, the specific objectives shall include:
To examine the relationship between minimum
wage and employee turn over in the public sector.
To assess the effect of failure to honour the
new minimum wage legislation on the performance of workers in the public
To investigate the role of Labour unions in
the wages and salary administration in the public sector.
To find ways by which cnsrs relating to
mimmum wages administration can be resolve.
1.4 RESEARCH QUESTIONS
The following questions shall guide the
Is there any the relationship between minimum
wage and labour turnover in the public sector?
What is the negative effect of failure to
honour the new minimum wage legislation on the performances of workers in the
What are the role of Labour unions In the
wages and salary administration in the public sector?
In what ways can the CriSIS relating to
mmimum wages administration be resolve?