Awate, E.
Department of Management, Faculty of Management Sciences, Rivers State University,
Port Harcourt, Nigeria
ABSTRACT
This study investigated the relationship between financial incentives and employee productivity in paint manufacturing companies in Rivers State. Two research questions and three hypotheses were tested. The research design adopted was the cross-sectional survey approach. The population of this study consisted of 1090 employees drawn from the six paints companies operating in Rivers State. However, using the Taro Yamane formula a sample size of 222 employees was drawn from the population. Therefore, 222 copies of the questionnaire were distributed to the respondents for the sake of data collection. The primary data was collected using a self-administered questionnaire. The research questionnaire was validated using the content validity technique while its reliability was tested using Nunnally’s (1978) Cronbach’s alpha at a benchmark of 0.7 as a minimum criterion. The data were analyzed using an inferential statistical technique with SPSS version 25.0 at a 95% confidence interval and a 0.05 level of significance. The result of the analysis showed a positive relationship between financial incentives and employee productivity in paint manufacturing companies in Rivers State. Therefore, the study concluded that financial incentives is an effective tool to enhance employee productivity in paints manufacturing companies in Rivers State. Based on the conclusion, the study recommended that the management of paint manufacturing companies should develop incentive programs that tie financial rewards directly to individual or team performance metrics relevant to the paint manufacturing process.
Keywords: Financial incentives, high output, efficiency, customer expansion.
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