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The impact of compensation on public sector construction workers in Jigawa State of Nigeria

Compensation is the remuneration which workers receive for their services or contributions to the organisation. The literature reviewed showed that compensation packages have relationship with workers’ motivation, job satisfaction, attraction and retention. On this basis, this study established a conceptual framework based on equity theory and used it to examine how compensation might be influencing workers’ motivation, job satisfaction, attraction and retention in the Ministry of Works and Transport of Jigawa State of Nigeria. The dependent variables considered in this study are limited to salary, allowance, gratuity, and pension as independent variables while the corresponding motivation, job satisfaction, attraction and retention are the dependent variables. The Positivist paradigm guided this empirical research; which holds the principle that knowledge is arrived at through the gathering of facts that provide the basis of laws. Thus, a quantitative research design was employed. A questionnaire was developed, pilot-tested and administered to gather data on workers’ motivation, job satisfaction, attraction and retention regarding four job compensable aspects, namely: salary, allowances, gratuity and pension. A total of 265 questionnaires were administered and 260 were collected through the early and late response technique. This represents a response rate of 98%. The respondents were selected using the stratified random sampling technique. The data collected was analysed using both descriptive statistics and structural equation modelling. The findings revealed that gratuity and allowance do positively and significantly influence workers’ motivation whereas salary and pension have no impact on workers’ motivation. Likewise, gratuity and pension do positively and significantly influence workers’ job satisfaction while salary and allowance have no impact on the job satisfaction of workers. Further, gratuity and pension do positively and significantly influence workers’ retention while salary and allowance have no impact on the retention of workers. Moreover, salary, gratuity and pension do positively and significantly influence workers’ attraction while allowance has no influence on the attraction of public construction workers in Jigawa state of Nigeria. Consequently, a framework was developed to reflect the factors that emerged for improving the motivation, job satisfaction, attraction and retention of the and equally address the pay disparity in Jigawa state. 67 respondents who participated in the main study were administered a second questionnaire to validate the framework. The subsequent findings revealed that the framework was relevant and could serve as a guide towards enhancing compensation practices and policies in the Ministry of Works and Transport. Thus, this study and its framework offer important policy recommendation to the Jigawa state government such as introducing new or improving the existing compensation packages of their workers.

Identiferoai:union.ndltd.org:bl.uk/oai:ethos.bl.uk:701700
Date January 2016
CreatorsBappa Salisu, Jamilu
ContributorsSuresh, Subashini
PublisherUniversity of Wolverhampton
Source SetsEthos UK
Detected LanguageEnglish
TypeElectronic Thesis or Dissertation
Sourcehttp://hdl.handle.net/2436/620335

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