• Musediq Olufemi Lawal Department of Sociology, College of Management and Social Sciences, Osun State University, Osun State, Nigeria


Fringe Benefits, Industry, Productivity, Organizational Performance


The study revealed that the provision of fringe benefits by the management of an organisation has positive roles to play in motivation of employees to higher productivity.  It also defined the degree to which an employee identifies with the organization and wants to continue participating actively in it.  Questionnaire was the major instrument adopted for this study, a total of 210 respondents were sampled from three food and beverages production organisations. Data generated through the questionnaires for the study were analysed making use of Statistical Package for Social Sciences (SPSS). The results showed that highly competitive fringe benefits have impetus for ensuring drastic reduction in labour turnover. Strong fringe benefits were therefore established to be correlated with employees’ motivation on the job, job satisfaction; job performance, employee retention and that proper workplace environment helps in reducing the rate of absentees.  The study therefore submitted that application of fringe benefits facilitates effective productivity, while it was also discovered that employees’ involvement in organization activities contribute to organizational stability.  The two hypotheses tested thus showed a significant relationship between employees’ involvement in policy formulation and implementation on individual productivity as well as organizational performance (F Statistic (17.65) P< 0.05 and sig. P< 0.05) and that significant relationship exists between application of fringe benefits and individual productivity as well as organizational performance (F Statistic (8.982) and sig. P< 0.05).


Ahn, T., Arcidiacono, P. and Wessels, W. (2011). The distributional impacts of minimum wage increases when both labor supply and labor demand are endogenous, Journal of Business and Economic Statistics, 29(1), 12 – 23

Akpan, U.I. (2020). The Impact of Fringe Benefits on Employees’ performance and development in Nigerian Banking Sector, International Journal of Creative Research Thoughts (IJCRT), 8(6): 10-11.

Al Mamun, C.A. and Hasan, M.N. (2017). Factors affecting Employee Turnover and sound retention Strategies in Business Organization: A Conceptual View, Problems and Perspectives in Management, 15(1): 63

Alderfer, C.P. (1969). An empirical test of a new Theory of Human Needs, Organizational Behavior and Human Performance, 4 (2): 142–75.

Alam, M.N., Hassan, M.M., Bowyer, D. and Reaz, M. (2020). The Effects of Wages and Welfare Facilities on Employee Productivity: Mediating Role of Employee Work Motivation, Australasian Accounting, Business and Finance Journal, 14(4): 38-60.

Albert, R. (1962). Payment system and Productivity, Great Britain: Macmillan Press Limited

Ali, A., Hussain Khan, I., Ch, M.A. and Akram Ch, A.S. (2018). Level of Job Satisfaction among Employees of Banking Industries at Lahore 2016. European Online Journal of Natural and Social Sciences: Proceedings, 7(3(s)), p. 92.

Appleby, R.C. (1969). Modern Business Administration, London: Sir Isaac Pitman and Sons Limited

Argente, D. and García, J.L. (2015). The price of Fringe Benefits when Formal and Informal Labour markets coexist, IZA Journal of Labour Economics, 4:1

Atiomo, A.S.I. (1987). Corporate Reward, Structure and Organisational Effectiveness, Personnel, 4(2):14.

Barbara, R., Bucklin, H.M and Alyce, M.D. (2003). The Effect of Individual Monetary Incentives with and Without Feedback, Journal of Organizational Behavior Management, 64, 94

Carson, C. (2018). A historical view of Douglas McGregor's Theory Y", Journal of Management Decision, 43 (3): 450–460.

Chukwudumebi and Kifordu, A.A. (2018). The Significance of Fringe Benefits on Employee Morale and Productivity, Romanian Economic Journal, 21(68), 78-92.

Cole, G.A. (1987), Personnel Management: Theory and Practice, D.U. Publications, pp. 56-91.

Craig, A.O., Job-Olatunji, K., Dairo, L.O., Adedamola, M.A., Peters, S.O. and Shorinmade, A.G. (2020). Employee Remuneration and the Financial Performance of Selected Manufacturing Companies in Nigeria, International Accounting and Taxation Research Group, Faculty of Management Sciences, University of Benin, Benin City, Nigeria, 4(3):54-65.

Diener, E. and Biswas-Diener, R. (2002). Will Money Increase Subjective wellbeing? A Literature Review and Guide to Needed Research, Social Indicators Research, (57):119-169

Dixit, V. and Bhati (2012), A study About Employee Commitment and its Impact on Sustained Productivity in India Auto-Component Industry, European Journal of Business and Social Sciences, 1(6), pp 44-5.

Dyson, M.G. and M.M. Lloyd (2013). Update on the Taxation of Fringe Benefits, American Benefits Council, USA: Miller and Chevalier Chartered, available at http://www.americanbenefitscouncil.org/documents2013/presentation_blb_fringe071013.pdf

Ekwochi. E.A., Nwudugbo, P.C. and Okoene, C.N. (2018). The Impact of Fringe Benefits on Employee’s Job Performance in United Bank of Africa (UBA) Plc, IAA Journal of Scientific Research, 4(1):34-62,

Falola H.O., Ibidunni A.S. and Olokundun, M. (2014). Incentives Packages and Employees’ Attitudes to Work: A Study of Selected Government Parastatals In Ogun State, South-West, Nigeria, International Journal of Research in Business and Social Science (IJRBS), 3(1):5-9.

Fashoyin, T. (1979), Workers Commitment to Productivity; Improvement Research Bulletin, No. 79/03: Human Resource Unit, University of Lagos

Gilchrist, R.R. (1971). Management for Profit, London: George Allen and Unwin Limited, pp. 34-45.

Grossberg, Adam J. and Paul Sicilian (2004). ‘Legal minimum wages and employment duration’, Southern Economic Journal 70(3), 631 – 645

Heneman, R.L. (1992). Merit Pay: Linking Pay Increase to Performance Ratings, New York: Addison-Wesley. Herzberg, F. (1959). The motivation of work, New York: Wiley and Sons Inc.

Ileka, N.O. and Muogbo, U. (2020). Wages and Salary Administration and Employee Performance in Selected Government Ministries in Anambra State, International Journal of Innovative Development and Policy Studies 8(1):70-80.

James, G.L. (2020). Relationship Between Intrinsic Job Satisfaction, Extrinsic Job Satisfaction, and Turnover Intentions in Luxury Hotels Satisfaction, and Turnover Intentions in Luxury Hotels, Walden University Scholar Works, Walden Dissertations and Doctoral Studies Collection, pp. 1-25; available at https://scholarworks.waldenu.edu/cgi/viewcontent.cgi?article=9566&context=dissertations

Kenrick, D. T., Griskevicius, V., Neuberg, S.L. and Schaller, M. (2010). Renovating the Pyramic of Needs: Contemporary extension built upon ancient foundations, Perspectives on Psychological Science, 5 (3): 292–314.

Khudhair, F. S., Rahman, R. A., and Adnan, A.A.B.Z. (2020). The Relationship between Compensation Strategy and Employee Performance among Academic Staff in Iraqi Universities: A Literature Review, International Journal of Academic Research in Business and Social Sciences, 10(1), 251–263.

Kuranchie-Mensah, E.B. and Amponsah-Tawiah, K. (2016). Employee motivation and work performance: A Comparative study of Mining Companies in Ghana, Journal of Industrial Engineering and Management (JIEM), 9(2): 255-309, http://dx.doi.org/10.3926/jiem.1530

Maslow, A.H. (1954). Theory of Human Motivation, British Journal of Industrial Relation, 2(3): 26-78

Michele, B. and Rob, A. (2008). The Importance of Financial Incentives on the Retirement Choices: New Evidence from Italy Tinbergen Institute Discussion Paper 052/3

Mohr, J. (1986). The Nigeria Industry: Sociological Sketches, Hannover: Vela Whelm and Co., pp. 87-91.

Mueller, D.R. (2011), Financial Incentives to Increase Employees Motivation; available at www.ehow.com

Nelson, B. (2003). Money is not the Root of all Motivation, Health Care Registration, 12(10):7-9

Neumark, David and William L. Wascher (2007), ‘Minimum wages and employment’, Foundations and Trends in Microeconomics, 3(1+2), 1 – 182

Nisar, S. and Siddiqui, D.A. (2019). A Survey on the Role of Fringe Benefits in Employee Satisfaction –An Analysis of Organizations of Pakistan, International Journal of Human Resource Studies, 9(1):233-38

Oguejiofor, C.J. and Umeano, N.E. (2018). Fringe benefits and Employees’ Performance in selected Brewery Firms in Anambra State, Journal of Sciences and Multidisciplinary Research, 10(1):

Oyer, P. (2008). ‘Salary or benefits?’, Research in Labor Economics, 28, 429 – 467

Schein, E.H. (1969), Process Consultation: Its roles in Organisation Development, Readings, Mass.: Addison Wesley

Sharma, K. and Jaiswal, N. (2018). A Study on Employees Attitude towards Fringe Benefits. International Journal of Engineering and Management Research (IJEMR), 8(2), 176-180.

Sierpińska, M. and Kulisa, B. (2018). Directions of Change in Corporate Fringe Benefits. Finanse, Rynki Finansowe, Ubezpieczenia, (1 (91) Zarządzanie finansami), 219-229.

Simon, H. and Morech, J. (1958). Organisation, New York: Niky

Simon, K.I. and Robert K. (2004). ‘Do minimum wages affect non-wage job attributes? Evidence on fringe benefits’, Industrial and Labor Relations Review, 58(1), 52 – 70

Siwale, J., Hapompwe, C.C., Kukano, C. and Silavwe, D.C. (2020). Impact of Reward System on Organisational Performance: A case study of Brentwood Suppliers Limited in Lusaka, Zambia, International Journal of Scientific and Research Publications, 10(7): 281-83

Stolovich,,H.D., Clark R.E. and Condly, S.J. (2002). Incentives Motivation and Workplace Performance: Research and Best Practices, Silver Spring, MD: International Society for Performance Improvement and Site Foundation

Vogireddy, S.R. (2020). Impact of Compensation on Employee Performance, OSR Journal of Humanities and Social Science (IOSR-JHSS), 25(9):17-22


Additional Files



How to Cite

Lawal, M. O. (2021). EFFECTS OF FRINGE BENEFITS ON EMPLOYEES PRODUCTIVITY IN SELECTED ORGANISATIONS IN OGUN STATE, NIGERIA. Annals of Spiru Haret University. Economic Series, 21(2), 55. Retrieved from https://www.anale.spiruharet.ro/economics/article/view/1063