THE EFFECT OF FINANCIAL AND NON FINANCIAL INCENTIVES ON STAFF PRODUCTIVITY

 Abstract

This study is on the effect of financial and non financial incentives on staff productivity. The total population for the study is 200 staff of NIPOST Kaduna state. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study. A total of 133 respondents made pay roll officers, postal officers, senior staff and junior staff were used for the study. The data collected were presented in tables and analyzed using simple percentages and frequencies

 CHAPTER ONE

INTRODUCTION

• Background of the study

All organizations are concerned with what should be done to achieve high level of productivity through staff motivation using the right kind of incentive. Consequently the effect of financial and non financial incentive becomes a burning issue in human resource management. As such a lot of theoretical concept, principles and techniques of management have evolved in response to these challenges/ but most scholars suggest that more conceptual and empirical work is required to show the link between financial and non financial incentive and staff productivity is still vague but some studies have documented in their work that financial incentive is readily perceived as having a high instrumental value that makes putting forth extra effort worthwhile and its has a long term effect in terms of labour turnover rate because of comparative value for alternative employment while non financial incentive has less initial impact as the pragmatics of financial gain, they seem to have a steady, sustainable impact. Despite the growing body of literature and empirical study on the effect of financial and non financial incentive on workers’ productivity, the subject matter still remains complex. Hence, the need to undertake a survey on the effect of financial and non financial incentives on staff productivity in Nigeria Postal Services Kaduna

• STATEMENT OF THE PROBLEM

Nigeria Postal Services (NIPOST) like other public enterprise is constraint with the problem of using non performance based element like salaries to compensate it staff as against performance-related pay structure which has hamper productivity because it does not make worker put in extra effort in their work. This is so because their compensation is not based on incentive schemes that elicit additional effort of workers sequel to unfriendly government legislation on wages clause and bureaucratic inefficiency. Hence the need to examine the effect of financial and non financial incentive on staff productivity in Nigeria Postal Services Kaduna.