WELFARE PROGRAMMES AND EMPLOYEES PERFORMANCE IN … · Daramola, Gloria C.1 Tafa, Zainab O.1 Abstract The impact of welfare programmes on employee performance has been the focus of

Sahel Analyst (AJOM): ISSN 1118- 6224 Page 74

WELFARE PROGRAMMES AND EMPLOYEES PERFORMANCE IN

BELLS UNIVERSITY OF TECHNOLOGY, OGUN STATE NIGERIA

Okafor, Linus Izediuno1

Daramola, Gloria C.1

Tafa, Zainab O.1

Abstract

The impact of welfare programmes on employee performance has been the

focus of serious research effort in recent times. The study identified the types

of welfare programmes existing in Bells University of Technology, and also

determined the relationship between income level and employees’

performance, all with a view to ascertain the relationship between employee

welfare programmes and employees’ performance. Primary data were used

in this study, and the research adopted a descriptive research design. In

analyzing the questionnaire, data analytical procedure of frequency and

percentages were used as descriptive statistics. Inferential statistics of factor

analysis was used to identify the types of welfare programmes while Pearson

correlation was used to test the two hypotheses in the study. The study

findings established that that there are various employee welfare programs

provided at Bells University of Technology. The findings also established that

welfare programs have positive impact on the employees’ performance. The

findings also indicated positive linear relationship established between

welfare programs and Income level. The study recommends that employers

should learn to implement welfare programs for improved employee

performance.

Keywords: Welfare programmes, Income level, Employee performance,

Bells University of Technology

Introduction

Employees are the back bone of every organization, without employees no

work can be done. The term “labour welfare”, “employee welfare” and

“workers welfare” are used interchangeably to denote various services

provided by the employers to the employees in addition to wages. Welfare

benefits are a necessity in every organization today. Employees have to be

1 Department of Business Administration, Bells University of Technology, Ota,

Nigeria

African Journal of Management (Vol.3, No.2 2018), Business Admin. University of Maiduguri


kept motivated at all times through various measure and activities. The

concept of welfare is necessarily dynamic, bearing a different interpretation

from country to country, from time to time, and even in the same country,

depending upon its value system, social institution, degree of industrialization

and general level of social and economic development. Even within a

country, its content may differ from region to region (Supriya 2017).

Workers are essential to the means of production (Drucker, 2010); they

deserve to be treated with respect and given proper welfare packages and

incentives (Noguera, 2005). These will improve their sense of worth, boost

their self- esteem, financial status and act as, a sort of motivation to drive

them to have more passion for their job, which is expected to be pursued by

employers who look beyond instant profit making as opposed to enduring

sustainable business earning of profits in perpetuity (Deeprose & Thorsen

2006). Lack of inadequate welfare packages and other incentives leads to

poor workers motivation which greatly affect their outcomes hence, there is

need for employers to give staff welfare package and other incentives for the

benefits of the employees, employers and the organization (Okereke & Daniel

2010). There have been a lot of concerted efforts at national and international

levels to set standards with minimal government interference and free market

forces that would serve as a framework to guide labour relations between

employees and employers and thus confer on workers certain rights once

there is an established contract of employment (Oginni & Adesanya, 2013).

Employees‟ welfare programme has been defined in various ways by many

authors. Yoder et al (1958) defines the term as a wide variety of services

provided by companies for employees, and in some cases, for members of

employees‟ families. Shubin (1957) sees it as additional incentives given to

employees by management to argument their wages. Moreover, Ejiafor

(1986) perceives employees‟ welfare package from monetary and non-

monetary perspectives when he defines it as something of value, apart from

agreed regular monetary payments of salaries and wages given by an

employer to an employee. A fine distinction is made by Ejiofor between

benefits and service. According to him, benefits are when direct monetary

reward accrues to the individual worker. For example, pension, leave pay, and

salary advance, while services involve no direct and identifiable monetary

benefit. Examples of such include the establishment of staff clubs, recreation

facilities, picnics, dances and festival parties. It is in line with this the

Ekpiken (1983) and Yesufu (1984) describe welfare programme as including

the provision of well ventilated offices, drinking water, end-of-year parties,

rest rooms, toilet, and first aid facilities by the management to the employees.

They also opine that providing employees with such things as canteens,

subsidized meals, medical facilities, recreational facilities, subsidized

Welfare Programmes and Employees Performance in Bells University of Technology, Ogun

State Nigeria


transport facilities, housing or housing allowance are regarded as welfare

programmes.

On the other hand, employee performance in any organization is vital, not

only for the growth of the organization, but also for the growth of individual

employee (Meyer & Peng 2006). An organization must know who are its

outstanding workers, those who need additional training and those not

contributing to the efficiency and welfare of the company or organization.

Also, performance on the job can be assessed at all levels of employment

such as: Personnel decision relating to promotion, job rotation, job

enrichments etc. (Aidis, 2005; Meyer & Peng 2006). And, in some ways, such

assessments are based on objective and systematic criteria, which include

factors relevant to the person„s ability to perform on the job. Therefore, a

careful evaluation of an employee„s performance can uncover weak-nesses or

deficiencies in a specific job skill, knowledge, or areas where motivation is

lacking. Once identified, the deficiencies may be remedied through additional

training or the provision of the needed rewards.

Concept of Welfare Programme

Worker‟s right is a very broad issue; however, it can be brought down to the

protection and respects of human life in the work place and the right to work

itself (Seidman, 2007). Some components of workers‟ rights are the right to

job safety, collective bargaining and equal pay for equal work and

employee‟s welfare. However, the focus of this work is on the employees‟

welfare programmes, such as Medicals and Medical Compensation, Annual

and Maternity Leave, Compassionate and Sick Leave, housing facilities,

conveniences, allowances, child welfare, educational facilities, and

restaurants. Employee welfare is a major issue in industrial relations because

welfare programmes and services enhance profitability but with bottom-line

employees and high level of unemployment, employers have more room to

dodge welfare services. Employee‟s welfare is also referred to as better work

opportunities for employees, which also relates to taking care of the well-

being of workers by Employers of labour, Trade Unions, Government and

Non-Governmental Agencies. International Labour Organization (2010) at its

Asian Regional Conference, defined employees‟ welfare as a term which is

understood to include accessibility to services such as facilities and amenities

as may be established in or in the vicinity of undertakings to enable the

persons employed in an organization to perform their work in a healthy,

congenial environment conducive to good health and high morale.

Employees‟ welfare has two aspects, negative and positive (Osterman, 2000).

On the negative side, the employees‟ welfare is concerned with counteracting

the beneficial effects of the large scale industrial system of production. On the



positive side, it deals with the provision of opportunities for the worker and

his/her family for a good life as understood in its most comprehensive sense.

A further argument in favor of employees‟ welfare is that it gives a reputation

that shows care and concern on the part of the employer and helps improve

the local image of the Company as a good employer. Good reputation assists

the organization‟s recruitment processes and productivity in the long run.

Welfare may not directly increase productivity,(Armstrong, 2003) but it may

add to the general feelings of satisfaction with the company, improves the

self-worth of the employee and cut down on employee turnover.

The International Labour Organization (2010) classifies welfare services into

two; intra-mural activities and extra-mural activities. Intra-mural activities are

those provided within the organization, they include latrines and urinals,

drinking water, washing and bathing facilities, crèches, rest shelters and

canteen, drinking water, arrangements for prevention of exhaustion, health

services including occupational safety, uniform and protective clothing and

shift allowances. Extra-mural activities which are undertaken outside the

organization such as maternity benefits, social insurance measures like

gratuity pension, rehabilitation, physical fitness and efficiency, family

planning and child welfare, education facilities, housing facilities,

recreational facilities including sports, cultural activities, transport to and

from the place of work (Manju & Mishra, 2007).

Welfare programmes can also be classified into two: statutory and non-

statutory welfare programmes. Statutory welfare is the product of the coercive

power of the government. Statutory stipulations compel employers to

implement welfare programmes. The government enacts rules in regard to

labour welfare in order to enforce the minimum standard of health and safety

of the workers. Employers have to observe the rules relating to working

conditions, hours of work, hygiene, safety, light, ventilation, sanitation etc.

Statutory welfare services are those which have to be provided irrespective of

size of the establishment, say, drinking water. Also, those which have to be

provided subject to the employment of a specified number of people, such as

Crèche, first aid equipment‟s, facilities for sitting, welfare officers etc. while

non-statutory or voluntary welfare includes all those activities employers

undertake for their workers on a voluntary basis. This includes services such

as recreational services, housing facilities, medical facilities, leave travel

concession, economic services etc. (Ankita 2010). Armstrong (2006) argues

that medical services aim to provide help to employees who get absent from

work for long periods because of illness related issues. They should aim to

speed the return of employee to work. Visits should be made by the managers

to ill employees with the aim of showing employees that their firm and

colleagues are concerned about their welfare and also to lessen any loneliness


State Nigeria


they may feel. Armstrong (2006) argues that organizations such as the Health

and Safety Executive have identified stress, anxiety and depression as among

the most commonly reported illness. Stress brought about through work

intensification and conflicts between home and work is related to the risks of

disease and ill-health.

Employee performance The term performance describes how an employee carries out the tasks that

make up the job. Good performance results from efforts, ability and

direction. Employee performance can therefore be defined as the totality of

the financial and other non-financial rewards that an employee receives in

return for his labour or services. It includes his basic pay and other numerous

financial and non-financial benefits and incentives. The totality of which

determines how well he lives in the society (Fagbamiye, 2000). Performance

is the achievement of specified task measured against predetermined or

identified standards of accuracy, completeness, cost and speed. Desired

performance can only be achieved efficiently and effectively, if employee

gets a sense of mutual gain of organization as well as of himself, with the

attainment of that defined target or goal. Efficiency and effectiveness are

ingredients of performance apart from competitiveness and productivity and

training is a way of increasing individual‟s performance (Tessema & Soeters,

2006). Tessema & Soeters (2006) categorized employee performance into

task and contextual or citizenship performance behaviors.

Task performance includes behaviors which an employee performs to

accomplish tasks given to him by his supervisor or behaviors associated with

core technical activities of the organization. Whereas, contextual or

citizenship performance includes behaviors which establishes the

organizational social and psychological context and help employees to

perform their core technical or task activities. Pawlowski (2005) noted that

what motivates employee (a) may be different from what motivates employee

(b) therefore, the organization must identify and stipulate the various means

that could enhance employee performance. Furthermore, welfare programmes

has been identified as the salient tools in actuating employee performance.

Research Methodology

The research design used for this study is descriptive survey research design

which employed a well self-administered questionnaire for data collection

from respondents in Bells University of Technology. Random sampling

techniques were used to select the respondents. Primary data were collected

through structured questionnaire.



Sample and Sampling Technique

The sample was drawn from various departments of Bells University of

Technology. Sampling technique describes the method used in outlining the

sample size from the population of the study. The population of the study is

large hence, it will be difficult if not impossible to reach the entire

respondents, therefore random sampling technique was used in carrying out

this research and the result will be unbiased. Random sampling was adopted

for this study so that the entire respondent will have equal chance of been

selected and also to control extraneous variables.

Sources of data collection

Primary data was used for the purpose of collecting information for this

research and the instrument that was used was questionnaires. Questions were

structured in line with the research hypothesis and other relevant questions in

the study.

Data Analysis

The data collected was analyzed using both the descriptive statistics and the

inferential statistics. For the purpose of this study, descriptive statistics of

tables and percentages was used for data presentation. The study also made

use of factor analysis to identify the types of welfare programmes existing in

Bells University of Technology.

The study made use of the correlation to test the significance of the

relationship between employee welfare programs and employees‟

performance and also to test the significance of the relationship between

income level and employee performance.

Data Presentation

Table 1: Gender of the Respondent

Source: Author Field Survey, 2017

From the table 1, the institution has more of male employees than female

employees. The percentage of the male respondent is 52% as compared to the

female respondent which is 48%. The findings indicate that majority of the

respondents were male but the difference is not significant. This implies that

the study was not influenced by gender imbalance.

Frequency Percent Valid Percent Cumulative Percent

Valid Male 78 52.0 52.0 52.0

Female 72 48.0 48.0 100.0

Total 150 100.0 100.0


State Nigeria


Table 2: Age of the Respondent


From the table 2, 64% of the employees are less than the age of 41, 24% are

within the age of 41-50 while the remaining 12% are 51 years and above. The

institution has more of employees who are less than 41 years, the implication

of this is that the institution has more young people which means more

manpower for the organization which invariably improves work output.

Table 3: Educational and professional qualification.


From the table 3, it was established that the institution 8% employees with O

levels, 12.7% of employees with NCE/HND, 25.3% B.Sc. holders, 34.0%

M.Sc. holders and 20.0% employees with Ph.D.

Table 4: Position of the Respondents

Frequency Percent Valid Percent

Cumulative

Percent

Valid (21-30) 34 22.7 22.7 22.7

(31-40) 62 41.3 41.3 64.0

(41-50) 36 24.0 24.0 88.0

51 and above 18 12.0 12.0 100.0

Total 150 100.0 100.0


Cumulative

Percent

Valid O levels 12 8.0 8.0 8.0

NCE/HND 19 12.7 12.7 20.7

B.Sc. 38 25.3 25.3 46.0

M.Sc. 51 34.0 34.0 80.0

Ph.D. 30 20.0 20.0 100.0

Total 150 100.0 100.0


Cumulative

Percent

Valid Junior 47 31.3 31.3 31.3

Senior 42 28.0 28.0 59.3

Middle 61 40.7 40.7 100.0

Total 150 100.0 100.0



From the table 4, the institution has 31.3% junior employees, 28.0% senior

employees and 40.7% middle level employees,

Table 5: How long have you worked in the organization.


From the table 5 above, the data revealed that majority of the employees have

worked for the institution for 2-5 years 38.7%), followed by those who have

served the institution for 6-10 years(28.7%), then those who had long-term

service to the institution of above 10 years(18%).

Frequency Percent

Valid

Percent

Cumulative

Percent

Valid less than 2 years 22 14.7 14.7 14.7

2-5 years 58 38.7 38.7 53.3

6-10 years 43 28.7 28.7 82.0

More than 10 Years 27 18.0 18.0 100.0

Total 150 100.0 100.0


State Nigeria


Table 6: Types of welfare programmes existing in Bells University of

Technology (Communalities)

Initial Extraction

Are there provisions for housing facilities? 1.000 .536

The institution provides uniforms, safety garments and

equipment: fire extinguishers, gloves, sanitary effects, gas masks,

first aid kits. 1.000 .569

Are there provisions for medical facilities? 1.000 .713

Are there provision for child welfare services? 1.000 .696

The institution allows for lenient sick and maternity leave. 1.000 .468

The institution has pension scheme. 1.000 .455

Does the institution provide educational facilities? 1.000 .699

The institution provides sports facilities, clubs and gyms for

physical fitness. 1.000 .781

Does the institution have standard restaurants 1.000 .603

The institution has room for meetings. 1.000 .682

The institution provides libraries. 1.000 .660

Are recreational facilities available? 1.000 .639

The institution provides conveniences such as urinals, offices,

toilets, sitting facilities etc. 1.000 .631

The institution provides airtime and mobile phone for my

communication. 1.000 .752

The institution has made arrangement with financial institutions

(banks) to provide cheap loans or credit facilities. 1.000 .662

The institution has commuter allowance subsidies and car loans to

facilitate staff transportation. 1.000 .626

Extraction Method: Principal Component Analysis.



Table 7: Total Variance Explained


Component Initial Eigenvalues Extraction Sums of Squared Loadings

Total

% of

Variance

Cumulative

% Total

% of

Variance Cumulative %

1 4.154 25.962 25.962 4.154 25.962 25.962

2 2.329 14.558 40.520 2.329 14.558 40.520

3 1.454 9.086 49.607 1.454 9.086 49.607

4 1.205 7.532 57.139 1.205 7.532 57.139

5 1.030 6.436 63.575 1.030 6.436 63.575

6 .921 5.759 69.334

7 .859 5.367 74.701

8 .645 4.029 78.730

9 .634 3.961 82.692

10 .586 3.663 86.354

11 .475 2.969 89.324

12 .438 2.737 92.060

13 .402 2.510 94.571

14 .340 2.123 96.694

15 .274 1.710 98.403

16 .255 1.597 100.000


State Nigeria


Table 8: Component Matrix (a)

Component

1 2 3 4 5

Are there provisions for housing facilities? .056 .552 .113 -.363 .288

The institution provides uniforms, safety

garments and equipment: fire extinguishers,

gloves, sanitary effects, gas masks, first aid kits.

.539 .168 .472 .129 .103

Are there provisions for medical facilities? .751 -.107 -.007 .096 .359

Are there provision for child welfare services? -.128 .683 .188 -.172 .384

The institution allows for lenient sick and

maternity leave. .616 .028 .181 .074 .223

The institution has pension scheme. .563 .228 -.077 .056 -.278

Does the institution provide educational

facilities? .539 .443 -.127 -.351 -.269

The institution provides sports facilities, clubs

and gyms for physical fitness. .449 .362 .460 .027 -.485

Does the institution have standard restaurants .575 -.099 .447 .247 .046

The institution has room for meetings. .689 -.088 -.225 .071 .379

The institution provides libraries. .440 .348 -.443 -.383 -.040

Are recreational facilities available? -.466 .614 .191 .004 -.093

The institution provides conveniences such as

urinals, offices, toilets, sitting facilities etc. .686 -.018 -.381 .034 -.118

The institution provides airtime and mobile

phone for my communication. -.416 .538 -.010 .530 .094

The institution has made arrangement with

financial institutions (banks) to provide cheap

loans or credit facilities. .396 .298 -.297 .544 -.177

The institution has commuter allowance

subsidies and car loans to facilitate staff

transportation.

-.270 .493 -.447 .308 .124


Interpretation

From the factor analysis above, table 6, 7 and 8, the welfare programmes

identified are those programmes with heavy factor load. For example in the

first rotation of the component matrix, programmes such as Medical facilities

= 75.1%, room for meetings = 68.9%, conveniences = 68.6%, sick and

maternity leave = 61.6%, standard restaurants = 57.5%.

Rotation two includes: child welfare = 68.3, recreational facilities = 61.6%,

housing facilities = 55.2%.

Rotation three includes: safety equipments = 47.2%, sport facilities 46%



Rotation four includes: credit facilities = 54.4%, mobile phones and airtime =

53%

Rotation five: sport facilities = 48.5%

From the table 8 above, it is obvious that medical facilities, room for

meetings, conveniences, sick and maternity leave and restaurants are highly

provided by the institution.

Relationship between welfare programmes and employees’ performance The study sought to determine the relationship between welfare programmes

and employees‟ performance. Pearson correlation analysis was used to

achieve this.

Table 9: Correlations

Welfare

programmes

Employee

performance

Welfare programmes Pearson Correlation 1 .325(**)

Sig. (2-tailed) .000

N

150 150

Employee performance Pearson Correlation .325(**) 1


N 150 150

** Correlation is significant at the 0.01 level (2-tailed).

Interpretation

If the significance is < 5%, the alternate hypothesis is accepted while the null

is rejected. If the significance is >5% the null hypothesis is accepted while the

alternate is accepted. The results in table above indicate that there is

significant and positive relationship between welfare programmes and

employees‟ performance. From the table, correlation is significant at 0.01

level which is > 5%. The alternate hypothesis is therefore accepted. There is a

moderate positive correlation of 32.5% between welfare programmes and

employees performance. This means that when there is an increase in the

welfare programmes provided such as medical facilities, restaurants,

conveniences etc. given to employees, there is also a corresponding increase

in employees‟ performance.


State Nigeria


Relationship between income level and employee performance

The study sought to determine the relationship between income level and

employees‟ performance. Pearson correlation analysis was also used to

achieve this.

Table 10: Correlations

Income Employee performance

Income Pearson Correlation 1 .297(**)


N 150 150

Employee performance Pearson Correlation .297(**) 1


N 150 150

** Correlation is significant at the 0.01 level (2-tailed).

From the table, correlation is significant at 0.01 level which is > 5%. The

alternate hypothesis is therefore accepted while the null hypothesis is

rejected. The table indicates that there is a positive and significant

relationship between income level and employees‟ performance i.e. a relative

increase in an employees‟ income level will result to a relative increase in

employees‟ performance. There is a weak positive correlation of 29.7%

between income level and employees‟ performance.

Conclusion

The importance of welfare programmes in the daily performance of

employees‟ cannot be over emphasized. It is a known fact that welfare

programmes improves employees‟ performance. From this study, it can easily

be deduced that employees‟ welfare programmes means a lot and should be

of great concern to the employers of labour. The results gotten from the

hypotheses shows that employees places great value on the various welfare

programmes provided for them by their employers. Hence, when these

programmes are not provided, employees tend to show their dissatisfaction

through poor performance and non- commitment to their work. It is therefore

essential for the institution to consider the needs and feelings of the

employees and not just neglect them in order to safe guard industrial harmony

because “a happy worker they say is a productive worker”. Welfare

programmes are driving forces that energize employees to show increased



commitment to work and to improve his or her performance. These are in

form of medical facilities, conveniences (urinals, offices, sitting facilities,

toilets etc.), recreational facilities, prompt payment of salaries and so on. This

is one of the most important ways to ensure that employees are properly

motivated to perform better, it is therefore of high importance to adopt the

necessary welfare programmes to ensure employees increased performance.

In conclusion organizations should provide welfare programs in order to

motivate and retain employees, to improve employees' performance, health,

social status and economic condition. The logic behind welfare programs is to

prepare efficient, loyal, healthy and satisfied workers for the organizations.

Services such as medical facilities, education for employees families and help

in improving their life living standard and makes employees to concentrate on

their job. Competitive salaries, benefits that meet the needs of employees for

economic and non-work needs, opportunity for learning and development and

friendly work relationship provide a significant amount of motivation for

employees. Retention is key issue in today's competitive business world and

organizations should offer something more than wage and salary in order to

keep key employees.

Recommendations It is therefore recommended that Bells University of Technology should

encourage the formation of employee welfare programmes owing to its

antecedent effect on performance. Bells University of Technology should

consider employee welfare programs as a strategy to motivate employees, and

improve efficiency in the institution. There is a need to further improve these

facilities and work environment within Bells University of Technology by

way of having modern equipment for improved work performance.

It is also recommended that all institutions should put in place, proper welfare

programme policies and have an authority to oversee the best implementation

of welfare programmes. Human resource managers should be properly

equipped with knowledge on implementation and utilization of welfare

programme practices and work life balance in order enhance organizational

efficiency. It is also recommended that Bells University of Technology

should encourage creativity and innovative attitude to allow room for new

ideas and ways of doing things.


State Nigeria


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Documents

WELFARE PROGRAMMES AND EMPLOYEES PERFORMANCE IN … · Daramola, Gloria C.1 Tafa, Zainab O.1 Abstract The impact of welfare programmes on employee performance has been the focus of