Reward Systems and Employees Performance in Akwa Ibom State Civil Service Commission

Reward Systems and Employees Performance in Akwa Ibom State Civil Service Commission

Abstract

This study investigated the influence of the reward system on employee performance in the Akwa Ibom State Civil Service Commission between 2011 and 2024. Anchored in motivational theories of work performance, the study examined how salary increments, promotions, performance based bonuses, awards, and career advancement impact employee productivity. A descriptive survey research design was adopted. From a total population of 15,533 civil servants across 22 ministries, one bureau, and seven departments/agencies, a sample of 376 respondents was selected using Krejcie and Morgan’s (1970) table and stratified random sampling.

Four ministries; Education, Health, Environment and Solid Minerals, and Works and Fire Service were randomly selected for the study. Data were collected using a structured 25 item Likert scale questionnaire covering key reward components. The instrument was validated by experts and yielded a reliability coefficient of 0.87. Data were analyzed using descriptive statistics and the Pearson Product Moment Correlation Coefficient (PPMCC) at the 0.05 level of significance.

The results revealed significant positive relationships between each reward variable and employee performance: salary increments (r = 0.68), promotions (r = 0.62), bonuses (r = 0.71), awards (r = 0.65), and career advancement (r = 0.67). The study concluded that a well-structured reward system significantly enhances motivation and performance among civil servants. It recommended that government institutions adopt merit based promotion policies, review compensation frameworks, and institutionalize performance based rewards to drive productivity and organizational efficiency.

Reward Systems and Employees Performance in Akwa Ibom State Civil Service Commission

CHAPTER ONE

INTRODUCTION

1.1 Background to the Study

In contemporary organizational management, the role of reward systems in enhancing employee performance has been widely recognized. Reward systems are essential mechanisms that organizations employ to motivate employees, boost productivity, and ensure job satisfaction (Armstrong, 2021). Effective reward systems contribute significantly to an organization’s overall performance by encouraging employees to work towards achieving both personal and organizational goals (LuthansandDoh, 2020). In the public sector, particularly in civil service commissions, reward systems play a crucial role in fostering commitment, reducing turnover, and improving service delivery (OfoegbuandOkon, 2019).

Civil service is widely regarded as a pivotal force for driving economic growth and societal development in most countries of the world, including Nigeria. The civil service serves as the apparatus for public regulation and management of all facets of society. Moreover, government resource allocations flow directly and indirectly from the public bureaucracy to the various sectors of society. Hence, all institutions invariably need to interact with the civil service at some point in their existence and operations (Philips, 2020). Consequently, the state of a society is significantly influenced by the performance of its civil service. The civil service’s catalytic function has prompted governments worldwide to consistently seek improved ways of delivering their services (Amoako, 2013).

As former President OlusegunObasanjo declared in 2003 “Nigerians have, for too long, been feeling short-changed by the quality of public service…Nigerians deserve better” (Nigeria, 2006, p.5). His administration eventually introduced the Service Compact with All Nigerians (SERVICOM) on March 21, 2004, to rectify inefficiencies and enhance service delivery (Nigeria, 2006). However, civil servants in developing countries like Nigeria receive limited inducements and suffer from low motivation (Nunberg, 2014). Many low-income countries have embarked on administrative reforms, which involved restructuring and downsizing the civil service but excessive cost-cutting through reduced wages can backfire, as skilled staff members exit the civil service, leading to demoralization, absenteeism, moonlighting, and corruption (Lienert, 2018).

Effective reward systems establish and maintain a competitive advantage for organizations (Milkovichand Newman, 2008). Consequently, organizations vying for success in the market must be prepared to adequately reward their most valuable assets – their employees. As noted by Armstrong (2008), rewards, whether monetary or non-monetary, are of paramount importance to employees. Rewards represent a means through which management compensates employees for their presence and accomplishments at the workplace.

Adams Stacey’s equity theory (Adams, 1963) underscores the connection between rewards and performance, suggesting that when employees perceive alignment between their inputs (knowledge, skills, attitudes, competencies) and outputs (rewards), they tend to perform optimally. Conversely, an employee who senses a disconnection between his/her input and compensation is likely to experience demotivation and dissatisfaction, ultimately affecting performance (Maduabum, 2016). The attainment of organizational objectives and goals is the crux of efficient reward management. Properly compensated employees profess an inclination to contribute their best performance to the organization, compared to those who receive inadequate compensation.

The Akwa Ibom State Civil Service Commission, like other public sector organizations in Nigeria, operates in a bureaucratic environment where employees are expected to perform their duties efficiently to drive government policies and programs. However, concerns have been raised about the level of motivation and performance among employees in the civil service. Issues such as irregular payment of salaries, lack of performance-based incentives, and limited career advancement opportunities have been identified as factors that may affect employee morale and productivity (AdewaleandAnthonia, 2019). These challenges underscore the need for a structured and effective reward system to enhance employee performance in the commission.

A reward system typically includes financial and non-financial incentives. Financial rewards consist of salaries, bonuses, allowances, and other monetary benefits, while non-financial rewards include recognition, career development opportunities, job security, and a conducive work environment (Dessler, 2020). Research has shown that employees are more likely to be productive and committed to their work when they feel valued and adequately rewarded (Herzberg, 1966). The absence of a well-structured reward system can lead to dissatisfaction, low morale, decreased productivity, and increased absenteeism among employees (Robbins and Judge, 2021).

Despite the significant role of reward systems in improving employee performance, studies on the effectiveness of these systems in the Nigerian public sector, especially within the Akwa Ibom State Civil Service Commission, remain limited. Previous research has largely focused on private-sector organizations, where performance-based rewards are more prevalent (Eze, 2021). Given the unique structure and operational framework of public service institutions, there is a need to examine how existing reward policies influence employee motivation and job performance within the civil service. It is on this background that this study therefore, seeks to investigate the influence of reward systems on employees’ performance in the Akwa Ibom State Civil Service Commission.

Reward Systems and Employees Performance in Akwa Ibom State Civil Service Commission

1.2 Statement of the Problem

Employee performance is a critical factor in achieving organizational goals, particularly in public service institutions like the Akwa Ibom State Civil Service Commission. However, poor reward systems have been identified as a major challenge affecting employee motivation, productivity, and overall job satisfaction in Nigeria’s public sector (Adewale and Anthonia, 2019). Studies have shown that when employees perceive a lack of fair and adequate rewards, they tend to exhibit low morale, reduced efficiency, and diminished commitment to their roles (Armstrong, 2021; Robbins and Judge, 2021).

The Civil Service of Akwa Ibom State remains patterned after the Nigerian Federal Civil Service, which was introduced by Great Britain through the colonial system and has undergone various reforms throughout its history (Schiavo-campo, 1998; Nigeria, 1988). The Akwa Ibom State Civil Service is designed to translate government policies and programmes into tangible results through its various Departments, Ministries, and Agencies (MDA).

In the Akwa Ibom State Civil Service Commission, employees are expected to deliver quality services that support the implementation of government policies and programs. However, anecdotal evidence and preliminary reports suggest that civil servants in the state experience irregular salary payments, lack of performance-based incentives, inadequate career development opportunities, and poor working conditions. These issues raise concerns about the effectiveness of the reward system in motivating employees to perform optimally. The absence of a well-structured reward system may contribute to high absenteeism, low job commitment, and inefficiencies in public service delivery (Ofoegbu and Okon, 2019).

However, research evidence (Chukwu, 2019; Eyo, 2019; Ayandele and Etim, 2020; Mustapha, 2020; Edet et al., 2023) indicates that the Akwa Ibom State Civil Service has failed to deliver quality service due to manifest lack of commitment from staff, which is partly due to poor reward system. Specifically, the study by Edet et al., (2023) found that among other things, the poor performance of Akwa Ibom State Civil Service employees is attributable to poor salary packages, non-availability of necessary allowances, inadequate in-service training, and poor working conditions generally.

Despite the evident link between a robust reward system and effective service delivery, it is discomfiting to observe that the Akwa Ibom State’s civil service appears to fall short in adequately addressing financial incentives, timely promotions, opportunities for staff training and development, career progression, workshops, and other motivating factors for its civil servants. As such, the effectiveness of government service delivery remains questionable and unsatisfactory. Thus, appraising the influence of rewards on service delivery in the Akwa Ibom State Civil Service constitutes a necessity.

1.3 Objectives of the Study

This study’s main objective was to examine the influence of Akwa Ibom State’s reward system on employee performance with regard to the state’s civil service from 2011 to 2024. Specifically the study sought to:

1. assess the influence of salary increments on employees’ performance in the Akwa Ibom State Civil Service Commission.
2. examine the influence of promotions on employees’ performance in the Akwa Ibom State Civil Service Commission.
3. evaluate the influence of performance-based bonuses on employee performance in the Akwa Ibom State Civil Service Commission.
4. investigate the influence of awards on employees’ performance in the Akwa Ibom State Civil Service Commission
5. examine the influence of career advancement on employees’ performance in the Akwa Ibom State Civil Service Commission.

1.4 Research Question

Based on the stated objectives, the following research questions were formulated by the researcher to guide the study:

1. how do salary increments influence the performance of employees in the Akwa Ibom State Civil Service Commission?
2. what is the effect of promotions on the employees’ performance in the Akwa Ibom State Civil Service Commission?
3. to what extent does performance-based bonuses impact employees’ performance in the Akwa Ibom State Civil Service Commission?
4. in what ways does awards influence employees’ performance in the Akwa Ibom State Civil Service Commission?
5. how does career advancement affect employees’ performance in the Akwa Ibom State Civil Service Commission?

1.5 Research Hypothesis

The following null hypotheses were formulated for the study:

1there is no significant influence of salary increments on employees’ performance in the Akwa Ibom State Civil Service Commission.

2. there is no significant influence of promotions on employees’ performance in the Akwa Ibom State Civil Service Commission.
3. there is no significant influence of performance-based bonuses on employee performance in the Akwa Ibom State Civil Service Commission.
4. there is no significant influence of awards on employees’ performance in the Akwa Ibom State Civil Service Commission.
5. there is no significant influence of career advancement on employees’ performance in the Akwa Ibom State Civil Service Commission.

1.6 Scope and Limitation of the Study

This study focuses on the impact of reward systems on employees’ performance in the Akwa Ibom State Civil Service Commission. The study specifically examines various reward components, including salary increments, promotions and career advancement, performance-based bonuses, awards and recognition programs, and retirement and pension benefits. The research aims to assess how these reward mechanisms influence employee motivation, commitment, service delivery, and overall productivity within the commission.

The study is limited to employees of the Akwa Ibom State Civil Service Commission, thereby excluding other public and private organizations. The findings may not be generalizable to other states in Nigeria or different sectors outside the civil service. Additionally, the study relies on self-reported data from employees, which may be subject to bias or exaggeration.

Another limitation is that the study primarily adopts a cross-sectional approach, meaning it captures data at a single point in time rather than analyzing long-term effects of reward systems on employee performance. Time and resource constraints may also limit the sample size and the depth of data collection.

1.7 Significance of the Study

This study is significant as it provides insights into the relationship between reward systems and employees’ performance in the Akwa Ibom State Civil Service Commission. The findings of this research will be beneficial to various stakeholders, including government policymakers, civil service administrators, employees, and future researchers.

For government policymakers, this study will offer empirical evidence on the effectiveness of different reward systems in enhancing employee motivation and productivity. The findings can guide policy reforms aimed at improving salary structures, career advancement opportunities, and other reward mechanisms in the Nigerian public sector.

For civil service administrators, this research will help identify the strengths and weaknesses of the existing reward system and propose strategies for improving employee engagement, job satisfaction, and overall service delivery. By understanding how salary increments, promotions, performance-based bonuses, and other incentives affect employees, administrators can develop policies that foster a more motivated and efficient workforce.

For employees, the study highlights the impact of rewards on job commitment, satisfaction, and performance. It will provide insights into how different reward structures influence their motivation and productivity, enabling them to advocate for better working conditions and career development opportunities.

For academics and future researchers, this study will contribute to the existing body of knowledge on reward systems and employee performance, particularly in the Nigerian public sector. It will serve as a reference for further studies in human resource management, organizational behavior, and public administration.

Overall, the study will provide practical recommendations for improving reward policies to enhance employee performance and service delivery in the Akwa Ibom State Civil Service Commission, ultimately contributing to the efficiency and effectiveness of the public sector.

Reward Systems and Employees Performance in Akwa Ibom State Civil Service Commission

1.8 Operational Definition of Terms

To ensure clarity and consistency in this study, the following key terms are operationally defined:

Reward Systems – The various financial and non-financial incentives provided by an organization to motivate employees and enhance their performance. In this study, it includes salary increments, promotions, performance-based bonuses, awards and recognition programs, and retirement benefits.

Employee Performance – The effectiveness, efficiency, and productivity of employees in fulfilling their job responsibilities. It is measured in terms of job commitment, service delivery, and overall contribution to organizational goals.

Salary Increments – The periodic increase in an employee’s salary as a reward for performance, experience, or cost-of-living adjustments. It is considered a financial incentive that impacts motivation and productivity.

Promotions– The upward movement of employees within the organization, often accompanied by increased responsibilities, better compensation, and professional growth opportunities.

Performance-Based Bonuses – Additional financial compensation awarded to employees based on their individual or collective performance, typically used to encourage higher productivity and efficiency.

Awards and Recognition Programs – Non-monetary incentives such as certificates, public recognition, and other forms of acknowledgment given to employees for outstanding contributions or achievements.

Employee Engagement – The level of enthusiasm, commitment, and involvement an employee demonstrates toward their job and organization. It is often influenced by the organization’s reward systems.

Service Delivery – The ability of employees to efficiently and effectively perform their duties, ensuring quality public service provision in the Akwa Ibom State Civil Service Commission.

1.9 Organization of the Study

This research is structured into five chapters, each addressing different aspects of the study on Reward Systems and Employees’ Performance in the Akwa Ibom State Civil Service Commission. The first chapter provides a general overview of the study, including the background to the study, statement of the problem, research objectives, research questions, research hypotheses, significance of the study, scope of the study, and the organization of the study.

The second chapter reviews existing literature related to reward systems and employee performance. It covers conceptual, theoretical, and empirical reviews. The chapter also discusses various reward components such as salary increments, promotions and career advancement, performance-based bonuses, awards and recognition programs, and retirement and pension benefits. Additionally, relevant theories such as the Social Exchange Theory (Blau, 1964) and Herzberg’s Two-Factor Theory and Expectancy Theory are examined to provide a theoretical foundation for the study.

The third chapter outlines the research design, study population, sampling techniques, data collection methods, research instruments, and methods of data analysis. It also discusses the validity and reliability of the research instruments, as well as the ethical considerations observed in conducting the study.

The fourth chapter presents the results of the study, analyzes the collected data using appropriate statistical tools, and discusses the findings in relation to existing literature. It highlights key insights into how different reward systems influence employee performance in the Akwa Ibom State Civil Service Commission.

The final chapter provides a summary of the major findings, draws conclusions based on the study’s objectives, and offers recommendations for improving reward systems to enhance employee performance. Suggestions for further research are also included.