IMPORTANCE OF INCENTIVES IN ENHANCING WORKERS PERFORMANCE IN CONSTRUCTION INDUSTRY

ABSTRACT

This study was based on the importance of incentives in enhancing workers performance on sites, that is, both financial and non-financial incentives, as applicable on construction sites. It was carried out to find out the type of incentives in operation in construction firms, whether only financial and non-financial or combination of both  is in operation including those available in the contracting firms with their variability from one firm to the other, considering indigenous and foreign contracting firms. The population was a random sampling of professionals chosen for the research, the data analysis was based on data collected with aid of structured questionnaire distributed to 200 workers on 2 sites in the building team,. The data were analyzed with the aid of chi-square distribution test, and rank correlation coefficient methods. The study concluded with the financial incentives like cash awards, transport allowance, overtime with pay, accident insurance, hospital allowance being preferred by the workers to others and that management should give further encouragement to their provision in order to enhance productivity.

INTRODUCTION

1.1 Background

Performance has been an essential contributor to corporate success. This is as a result of its direct translation into cost savings and profitability. Performance has also been a key to long-term growth and sustainable improvement and when associated with economic growth and development generates non-inflationary increases in wages and salaries (Mojahed, 2005). The construction industry generally plays a vital role in a national economy due to the usage of its products such as roads, buildings and dams for the production of goods and services. In spite of the immense size and significance of the construction industry to the economies of most nations, its productivity is one of the controversial and least understood factors (Haskell, 2004).

In the construction industry, site workers account for 40% of direct capital cost of large construction projects and there is the need to maximise the productivity of human resources (Thomas et al., 2004). More so 30% to 50% of workers time is spent directly on the work and, hence, there is the need for proper utilisation.

In Nigeria’s construction industry for instance, companies are currently applying various non-financial incentive schemes aimed at improving operatives’ productivity (Olabosipo, 2004). Considering the fact that the construction industry in Nigeria  is quite similar to that of Nigeria, it can be concluded that the introduction of a non-financial incentive will contribute to worker incentive  in Nigeria ian construction industry. This will, in effect, enhance workers output and the overall performance within the construction industry and further contribute to the national economy.

1.2 Problem Statement

Lack of workers’ incentive  on construction sites has been identified and this has contributed the low employees’ work performance (Thomas et al., 2004). This has been a result of the difficulties in emphasising the positive side of worker incentive . Several attempts have been made by management over the years to enhance workers’ incentive  in order to achieve the desired performance from the employees which may be more psychological. According to Shun (2004), management is often frustrated by lack of incentive  generated by the end of the year bonuses. There is therefore the need for craftsmen and other subordinates to be motivated by providing them with the right conditions and opportunity. A correlation exists between worker incentive  and performance therefore; there is the need for workers to always feel motivated in order to increase performance. Thomas et al., (2004) posits that an unsatisfactory work environment can have an adverse effect on worker incentive  that tends to make minimal effort towards work there by lowering performance.

Non empirical evidence shows that non-financial incentive is understood by the craftsmen to be a motivator to improve performance and productivity in the Nigerian construction industry. This study seeks to identify certain incentive strategic practices that may contribute in improving construction workers performance in Abuja  Municipal assembly in the Greater Abuja  region, Nigeria .

1.3 Aim of the Study

The aim of the study is to investigate into the main incentive practices in use by construction firm in Nigeria as a means to identify those which result in the improvement on the performance of construction workers.