Impact of Monetary Incentives on Employee Performance in the Nigerian Automotive Sector: A Case Study

Abstract

This study delves into the intricate relationship between monetary incentives and workers' performance within the context of the Nigerian Automobile Industry. The objective is to discern the impact of various monetary incentive factors on employee performance while also investigating potential areas for enhancement. Through a meticulous examination of 120 completed questionnaires, the study identifies prevailing trends and disparities in the perception of monetary incentives among industry workers. The findings unveil a nuanced understanding of employees' familiarity with the elements and factors of monetary incentives, highlighting their comprehension of how these variables intertwine with their workplace performance. A critical observation is made concerning the incongruence between the societal image associated with workers within the Automobile Industry and the current salary structures. It becomes evident that salary adjustments are not conducted in alignment with the benchmarks established by the Salaries and Wages Commission. A compelling revelation surfaces as the study underscores the paramount influence of Bonus payments and pay raises on employees' motivation and job satisfaction. These two factors emerge as significant determinants of enhanced performance, with most workers acknowledging their pivotal role. In contrast, the practice of Profit Sharing within the industry is not commonplace, and concerns regarding transparency shadow instances that do exist. This unveils a compelling demand for a more open and equitable Profit-Sharing system capable of invigorating workers' enthusiasm. Moreover, the study illuminates the inadequacies of the Retirement Benefits framework, indicating a palpable need for its augmentation to elevate employee contentment and performance. The research substantiates the hypothesis that monetary Incentives encompassing Salary, Bonus, pay rate, profit-sharing, and Retirement Benefits significantly influence workers' performance within the Nigerian Automobile Industry. In conclusion, the study proffers strategic recommendations to fortify the bond between monetary incentives and employee performance. Embracing transparency, ensuring timely salary reviews and bonus disbursements, implementing performance-based pay rise policies, enhancing retirement benefits, and upholding transparency in monetary incentive processes are identified as pivotal actions that can stimulate heightened motivation, job satisfaction, and ultimately, superior performance within the Nigerian Automobile Industry.
 Keywords: Monetary Incentives, Employee Performance, Nigerian Automobile Industry, Job Satisfaction, Intrinsic Motivation, Career Development, Human Resources Management, Pay Rise.

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