Compensation and Workers’ Dedication in Manufacturing Firms in Nigeria

Abstract

This research examined the relationship between compensation and workers’ dedication in Manufacturing Firms in Nigeria. Performance and skills based compensation were used as dimensions of the predictor variable while affective and continuance commitment were used as measures of workers’ dedication. Cross-sectional survey research design was used for the study. A total of two hundred and forty four (244) existing employees’  were drawn from a population of six hundred and twenty five (625) existing employees’ across manufacturing firms in Nigeria, using Taro Yamane’s formula for sample size determination and Krejcie & Morgan (1970) formula for sub-sample size calculation. The researcher collected data on the individual employees, using a five point Likert Scale questionnaire. The questionnaire was validated via, content validity while Cronbach alpha was used to test for reliability of the research instrument. The data collected was analyzed using Pearson Product Moment Correlation Coefficient. The analyses were conducted using statistical package for social sciences version 20.0. The result of the findings revealed that performance and skills based compensation give rise to affective and continuance commitment respectively. Based on empirical findings, the researcher then concluded that compensation positively impacts workers’ commitment.