An Appraisal of Wage Payment System and Employees’ Performance in the Oil and Gas Industry in Lagos State

Oyelude Opeyemi, Ajani John, Abazie Chioma, Adeyi Julianah & Alade Oluseye

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Abstract

In any organisation, the performance of the employees depends much on wage payment. Although it was important, some employers did not have a suitable wage payment system, which in turn affected employees’ performance. The study investigated the impact of wage system on employees’ performance in the Oil and Gas industry in Lagos State, Nigeria. The study was based on three factors: salary structures and workplace efficiency (SSWE), wage satisfaction and organisational impact (WSOI), and employee perception (EMP). This study adopted a survey research design, which is quantitative in nature. The population for this study was 200 staff of an Oil and Gas industry in Lagos headquarters, while the sample size of 115 was computed using Taro Yamane’s formula. Data were collected by using a structured questionnaire, and data were analysed by regression and ANOVA. The results of the study indicated that the variables, such as wage satisfaction and employee perception, have weaker or non-significant relationships with employees’ performance, whereas salary structure and workplace efficiency have a significant positive impact on employees’ performance. The study further revealed that, although financial incentives are relevant, not all of the wage-related factors have equal importance in relation to the outcome of an employee. The study found that scheduled and transparent compensation systems are relevant to improving the productivity and performance of the organisation as a whole.

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