Description

IMPACT OF EMPLOYEE RENUMERATION ON THE GROWTH AND PROFITABILITY OF A FIRM

(A CASE STUDY OF SOLAN BISCUITS COMPANY),

ASABA DELTA STATE.

ABSTRACT

While remuneration is arguably one of the key drivers of motivation and one of the most studied areas, doubts have been cast. While lack of it causes dissatisfaction, its provision does not result in lasting motivation. The impact of remuneration on motivation varies from organization to organization. The study thus examines Impact of employee renumeration on the growth and profitability of a firm using Solan biscuits company, Asaba as a case study. The study adopted descriptive research design, while regression method of analysis was utilized in carrying out the empirical analysis. Findings from the study revealed that salary has a significant impact on and employee’s performance in Solan biscuits company, Asaba. The existence of a good remuneration of employees will make the health of employees also good. In addition, bonus was found to have a significant effect on employee performance at Solan biscuits company, Asaba. The result showed that a change in bonus by 1% had on the average, enhanced employee performance by 0.51% within the period under review. Furthermore, commission was discovered to have a significant impact on employee performance. Lastly, overtime payment was discovered to have a significant effect on employee performance. The results revealed that overtime payment have positive effect on employee performance. It is the desire of every organization to constantly increase profitability and growth, thereby necessitating the need to motivate employees through comprehensive remuneration policies and friendly working conditions. The need to retain effective and qualified work force is a necessity for a functional organization, thereby necessitating the need to provide good working conditions that will eventually lead profitability and growth.