Our Blog

List of recently published project topics and materials

PROJECT TOPIC- AN EVALUATION OF THE IMPACT OF SALARY STRUCTURE, INCENTIVE AND FRINGE BENEFITS ON THE PERFORlVlANCE OF BANK EMPLOYEES

PROJECT TOPIC- AN EVALUATION OF THE IMPACT OF SALARY STRUCTURE, INCENTIVE AND FRINGE BENEFITS ON THE PERFORlVlANCE OF BANK EMPLOYEES

 

ABSTRACT

This research was undertaken to identify the impact of salary structure, incentives and fringe benefits on the performance of Bank employees; thc typcs of incentives and fi-inge benefit schemes availabje and how the management of the various banks administer the schemes.
4 out of the 8 non-distressed ban’is in Enugu metropolis were used for this study. And of the 200 questionnaires distributed, 196 were returned and used.
The respondents include 30 managers, 41 ofikers, 52 supervisors and 73 clerks. Majority ofthe respondents have worked in their various banks fbr 10 years and above. The instruments used in collecting data are, a 34 item questionnaire distributd randomly to the employees of the banks of study and personal unstructured interview of some employees by the researcher.
For analyzing, the researcher used frequency distribution tables and chixts to clarify the findings.
Major findings of the study include:
– That the monthly salary structure for Managers ranges from N16,OOO- N20,OOO; 0 ficers N11,000- N15,000; Supervisors N6,000- N 1 0,000; and Clerks N1,OOO- N5,000

– That bankers are satisfied with their present salary structure therefore any review on the negative would not be welcomed.

– That bank workers are remunerated on merit, in disagreement to question of competitiveness of bankers salaries i.e. bank worker are paid based on their levels.
– That in deciding the rate with which to incrzase sa!aries, banks consider t’nctors such 11s inflation rate, environmental and social factors.
– That the current salary structure will change workers attitude to work favourably .
– That the current salary structure was drawn taking into account years of experience.
– That the iiinge benefits offered go a long way in keeping to alleviate workers problems of hospitalization, housing and transportation.
– That fringe benefits contribute to the effective performance of bank employees.
– That most banks offer the same types of fringe benefits such as house allowance, free medical treatment, loan sche.nes, long service awards.

CHAPTER ONE
INTRODUCTION

Business organizations have always faced the problem of enlisting their e~nployces loyalty and commitment in support of corporate goals”.
Today, however, this problem has assumed the dimensions ofa major challenge. Management of different organ is at ion^ have worried over the situations as poor workers morale and even sabotage. But the causes are more traceable to the various government pronouncements on salary adjustments, employees salary administration and individual Organisations incentive package ass well as remuneration.
Salaries have aIways been known to incite employees where they are given as recognition factor, example where an immediate salary increase or bonus reinforces the words of praise and thanks for a job we11 done. Least wonder why most companies adopt it as one of the major functions of pcrsomel management. The personnel department of an Organisations should therefore sec themselvc~ playing thc role of a family head, balancing objectives of both the Organisations itself and that of the workers. As Amital 1978) puts it, ‘ k c are borne in Organisations, educated by Gganisations and most of us spend much of our lives working in Organisa~ions,w e spend much of our leisure time playing, praying in Organisations. Most of us will die in the Organisations and when the time come for burial, the largest Organisations of the state must grmt official permission.”
In many Organisations today, it is noticed that there is wide disparity in the salary of employees. Salary paid in some Organisations are completely haphazard, bear littlc relationship to competitive ratcs of different jobs and have disjointed the internal relatimship of employees to the extent that work is no longer interesting and worth doing The same goes for incentives and remuneration. Some Organisations offer very attractive incentives and remuneration while others do not. Every individual needs sometlling extra to incite him to pefionn better in a work situation and this can only be achieved through the implementation of sound and inspiring incentive and remuneration schemes.

Most of the battered employees who if not for the battered economy of the nation, would have gone for better alternatives, could not but stay quietly for the sake of their daily meals. The summary of it all is that there is no job satisfaction. Some of the employees have resorted to taking advantage of their various positions by raking bribes, awarding contracts based on percentage price of the contracts or even involving themselves in private practices in such a way that their jobs are neglected.
It is in this regards that I have decided to examine to what exte~ltth e past and present salary structure and various incentives and remuneration have contributed to the non-challance of workers generally and bankers in particular.
A general wage increase means that the gross wages and salaries of workers in both the public and private sectors of the econonly are increased. These increses would result in increases in dispensable income of the workers. When there are such increases in dispensable income of workers whose propensity to consume is very high in a developing economy like ours, the tendency is for these workers to increase their demand for goods md
services.

The new increase in demand if not countered by an equal increase in supply, will tend to increase prices. If workers perception of their performances do not reflect in the increase in workers salaries, we can jolly-well say that therc: is emulsion and this w : t~he effect of the presentIy widely used elongated salary structure in the Baking industry, particularly among the senior employees of the banks and financial establishments.
In ApriI, 1982, wage increase was frozen after the Shagari’s civilian administration enacted the stabilization act. It was later reinforced by SAP introduced in July, 1986, by the former military regime of General firahirn Babangida. In his budget speech of 3 1st December, 1987, Gen. Babangida announced the lifting of embargo on the age long wage increase. The Genera1 however, said that collective bargaining between employers and 3
employees union in the private sector was to decide wages to be pnid with the following conditions:
(a) No arrears of newly fixed wages will be approved by the ministry. (b) Payment will commence from the month of agreement. (c) Employers and workers should be “responsible” during negotia~ion. Prior to this time, government had mandated the head of civil service, Mr. A.M. Waziri Fika to work out the new salary structure for the civil service, taking into consideration large number of oficers who have remained on one salary point for many years and need to remove the stagnation and attendant frustration.

Elongated salary structure was arrived at by Mr. Fika by extending the step for which a worker may go before stopping from getting further annual increment. In the past, ministry scales/steps ended in after which a worker will no longer earn increment until such a time when the worker is promoted to the next level but the elongated salary scale increased the steps to ‘ 15’. The increment rate of individual grade was increased and this is the modality used in spreading out the elongated scak on point to point basis and retain their present incremental rate.

PROJECT TOPIC- AN EVALUATION OF THE IMPACT OF SALARY STRUCTURE, INCENTIVE AND FRINGE BENEFITS ON THE PERFORlVlANCE OF BANK EMPLOYEES

 

The representatives of the Nigerian Labour Congress (NLC) and the Nigerian Employers Consultative Association (NECA) met in Lagos on Januaiy ISth, 1988 as reported in the Guardian Newspaper in January 16th, 1988, where the NLC position at the meeting was that common procedures for wage negotiation between labour unions and Employers Association should be worked out since the government insisted that strikers were still lawfUl. At this meeting, the NLC delegation was led by it’s president while Dr. G.C. Okongwu, director of NECA led the NECA delegation. ~ lwlork ers applauded the NLC ~tanda t the meeting hoping NLC will be able to foil the government’s hope of influencing any bargaining.

The NLC however, did not make any headway in this matter as the leadership tussle in the council was so prolonged that individual workers unions had to go ahead to negotiate wages with their employers using Fika’s approach of elongated salary structure. The Senior Staff Association of Banks, Insurance and Financial Institutions Employees (ASBIFE) came out with a newly signed salary structure for their members and this took effect from March lst, 1988. The National Union of Banks, Insurance and Financial Institutions Employees (NUBFIE) also came out with a signed salary structure which equally took effect fiorn 1st June, 1988. From this year till date, various labour unions have signed their salary structure in consonance with the Fika elongated salary
structure for the public sector.

1.2 STATEMENT OF THE PROBLEM

This research is prompted by the influ of job-seekers in the banking industry. What makes the banking industry tick?
This research is meant to analyse the role of salary structure, incentives and fringe benefits on productivity. Specifically, it seeks to answer the following questions: What are the various forms of incentives and fringe benefits in banks?
To what extent are they in use at the reference banks?
Do fringe benefits programmes contribute to high productivity?
Do incentives and fringe benefit programmes elicit the commitment of employees to the achievement of personal and organisational objectives?

OBJECTIVES OF THE STUDY

To identify the pay structure of the banks of study.
To identify the attractive features in working for a bank while still at work and in retirement.
To find out whether there is disparity in salary structures between unionised and non-unionised banks.
– To find out whether the fi-inge benefits contribute to the effective performance of the employees and if such benefits meet the needs of the employees.
– Whether the fringe benefits offered are equal or whether they vary according to qualification or levels.
– Lastly, this research study will find out whether the salary structure helps to reduce or increase the incidence of fraud in the banks.

PROJECT TOPIC- AN EVALUATION OF THE IMPACT OF SALARY STRUCTURE, INCENTIVE AND FRINGE BENEFITS ON THE PERFORlVlANCE OF BANK EMPLOYEES

 

Was the material helpful? Comment below. Need the material? Call 08060755653.