REWARD SYSTEM AND EMPLOYEE PRODUCTIVITY OF SELECTED BEVERAGE COMPANIES IN SOUTHWEST, NIGERIA

C.I AWONIYI; A. M. AKILO; T. C. KAZEEM; S.O.M. AWONIYI

C.I AWONIYI Joseph Ayo Babalola University, Osun State
A. M. AKILO Joseph Ayo Babalola University, Osun State
T. C. KAZEEM Federal Polytechnic, Ile-Oluji, Ondo State
S.O.M. AWONIYI Joseph Ayo Babalola University, Osun State

Keywords: Reward system, Employee productivity, Beverage companies

Abstract

Many organisations are fading away because their organisational reward system is not favourable to their employees and it demotivates them from putting their best into their jobs. On the other hand, some organisations mismanage their reward system, resulting in problems that lead to low productivity and low performance. The effect of the reward system on employee productivity of selected beverage companies in Southwest Nigeria was assessed using a well-structured questionnaire administered to 317 respondents who arrived at using the Taro Yamane formula (1973) and selected through a systematic sampling method from a population of 1,267employees. Only 306 copies of the 317 questionnaires distributed to employees of the beverage companies selected through the multi-stage sampling technique were used to be correctly filled. The companies were selected randomly because they are among the key players of beverage companies in Nigeria. The simple linear regression model was adopted to test the hypothesis. The beta coefficient (0.376) of the reward system, significant at p < 0.001 level, reveals that the reward system has a significant positive effect on employee productivity of the beverage companies and the null hypothesis was rejected. The study recommends that rewards should be fair, realistic, and given intrinsically and extrinsically.