Impact Of Fringe Benefits On Employee Performance

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Impact Of Fringe Benefits On Employee Performance



The problems of employee motivation and performance in Nigeria have continued to attract the attention of professional bodies and other interested parties. Research has shown that a substantial portion of the total variable cost in many organization are spent on salaries, wages and fringe benefits and thus often result in main-hour loses due to workers strike or tension between management and worker in a bid for improved organization climate

For worker, fringe benefits represent extra income and additional security. For management, the fringe benefit scheme is hard to fulfill due to recessive economy – although the return from fringe benefit and service may not be ready apparent to the employer, such benefits often satisfy employee’s needs and wants that cannot otherwise be satisfied by salaries and thus fringe Benefit have been considered, valuable by promoting harmonious organizational commitment to duties and obedience to organizational objectives.

In view of workshop or lecture was gathered that some organizational management assumes that if employees are given as many fringe Benefits as possible in addition to their salaries, the performance of the workers may increase and to some extent neutralize any negative or interruptive plans by the unions, hence, fringe benefit are often seen as factors promoting industrial harmony and peace in any organization (filppo 1950: 56)

Consequently, the various ways and salaries supplement scheme have attempted to solve the problem in employer- employee relationship. Source meanwhile, the assumption that Nigerian workers are motivated to perform more by increase ways and other salary supplements, such as paid leave, free health care plans, bonuses, pension and gravity plans and insurance have received some support from both the labour union and Nigerian Government.

Thus evidence by the setting up of eleven different commission on salaries review between 1934 and 1988(Ejifor Nnamdi and Anigbo (19893)

All these were done in assumption that a worker can be coerced and manipulated to fit the objectives of the organization through monetary rewards or incentives. Therefore, for an organization to achieve its goals of survival and to improve productivity, motivation of workers become very necessary and need to be seen as a vital element of the organizational policies. Good motivational programmer have not always been easy to attain in same organizational because of the problem of selecting the appropriate motivational tools limited resource to finance such programmer and proper implementation.


According to Ekundayo (1988) a tangible gain to employees in form of monetary or non-monetary reward. Research has shown that the Health sector has not been performing up to expectation for some reasons which boarders on inability to attract, retain and activate personal effectively and efficiently (Adeoye 1977:11, ifedi 1986:3)

The bulk of the problems may create among workers of on existing salary and fringe benefits scheme as well as poor working condition which lead to suck vices as lateness to work, absentees and in extreme case/ outright resignation.

All these continue to impede on the desire to develop the sector.

It is therefore the trust of this research study to investigate an aspect of the problem of poor fringe benefit scheme, with the aim of establishing its effects on the performance of worker in university of Nigeria Teaching Hospital Ituku Ozala Enugu. This study is also designed to make useful suggestion that will lead to improved fringe benefit administration in the Hospital as a way of engendering better performance among the workers and consequently enhancing the viability of the hospital


The theoretical foundation of study is based on Herzberg theories of needs,

Herzberg (1975) suggested a two step frame work to understand employee motivation and satisfaction. This theory was developed to explain employee’s relation to their work and their work environment. He highlighted that all factors could be categorized in two groups. The first group is called Hygiene or maintenance factors and the second group is called the motivating factors.


Motivating factors called lead to an individual is need for personal growth when in existence; motivating factors called easily contribute to job satisfaction when it is most effective. It could motivate on employee to perform above average and above expectation.

Herbert’s motivating factor includes:

  • status

  • Opportunity for advancement

  • Gaining recognitions

  • Responsibility

  • Stimulating work

  • Sense of personal achievement

  • Personal growth in a job


Hygiene factors are based on the needs of the organization in order to present pleasantness in the working environment. When employees are under the impression that these are inadequate, it could lead to dissatisfy factor in the workplace. The hygiene factors include:

  • Company policy and administration

  • Wages

  • Other financial remuneration

  • Quality of supervision

  • Quality of interpersonal relations

  • Working condition

  • Feeling of job security

Herzberg (1975) proposed that when hygiene factors are lacking in the workplace, the employees will experience dissatisfy factor of unhappiness. However, when these factors are present, the employee does not necessarily experience disasters factors. But when motivating factors are present, the employee feels satisfied.

The researchers adopted this theory in order to understand the needs of the employees and the impact of fringe benefits in meeting up with those needs.

According to the theory, every employee could react differently to his remuneration package, depending on the specific phase he is in his life as well as the conditions he experience at work. Different employees have different expectations from the remuneration given by the employee thus the theory uphold that certain needs have to be satisfied. Before an employee’s morale and performance can be improved


  • What is the impact of fringe Benefit available at UNTH Enugu?

  • Moral and performance of the employee

  • What are the challenges facing adequate

  • Implementation of fringe benefit in UNTH Enugu

  • What are possible recommendations on improving the fringe Benefits in UNTH?


The study would be significant to all the personnel of the Hospital as they would use the facts presented to improve on that activity. The study will also determine whether or not poor fringe benefit scheme contribute to lateness, absentee turnover, low moral and low level of commitment among workers.

It would be significant to both law makers and policy implementers because they would use the data provided to make more effective laws for the hospital.

It would be significant to Administration and human resource practioners because they would apply the findings to impacting because they would use the data provided to make more effective laws for the hospital.

It would be significant to Administration and human resource practioners because they would apply the findings in impacting knowledge


The scope of the study is the impact of fringe benefit and employee’s morale and performance in Nigeria with particular reference in the of Nigeria university Teaching Hospital ITUKU Ozala, Enugu. This study intended to cover some of the major area of scheme with some of resource with be concentrated on employee of all caders in the Hospital


The major constraint of this research study is the sourcing of the relevant material as some of the materials needed are not readily available.

Another major limitation is the inability of the workers in the Hospital to make available some useful material, which they describe as classified and therefore it cannot be made available.

Money is also a serious impediment. This is as a result of numerous trips. That has to be embarked upon for the purpose of the work. The prevailing like fuel price contributed to the increase of transportation fare. A lot of money is also needed for the typing and binding of the research work itself.

Again, there is issue of time constraint which enforced on the researcher a lot of handwork to ensure that the research was completed with the stipulated time and other factors that cannot be avoided.


FRINGE BENEFITS: these are addition benefits (monetary or non-monetary) available to workers as a member of an organization apart from be normal salary or ways and which are the total cost of labour.

MORALE; this is the sum total of the attitude of all the workers of one group. If we can design the attitude of individuals, we can deduce them from the overall. Morale cannot directly be measured.

EFFECTIVENESS: Any person who received remuneration or to whom any remuneration access by reason of any service rendered by such person to or on benefit of a labour broker.

EMPLOYER: Duckers (1955) suggested that an employer is controls and direct a servant or worker under an express or implied contract of employment and cor obligated to pay him or her salary or way in compensation.

MOTIVATION: it can be defined as the process that initiates, guides and maintain good oriented behaviors’.




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