The Effect of Salaries and Wages on Worker’s Performance in Educational Sector

The Effect of Salaries and Wages on Worker’s Performance in Educational Sector

Abstract of The Effect of Salaries and Wages on Worker’s Performance in Educational Sector

The study comprehensively delved on the effect of salaries and wages on workers performance in   the education sector. The objective of the study is to examine whether increment in wages and salaries serves as motivator to retain worker in an organization and to examine whether inadequate pay to workers can lead  to absenteeism, lateness and strikes etc. the survey research method was employed in this study, the questionnaire was the major instrument used to collect information from the respondents. The chi-square test was used to analyze the collected information from the respondent at 5% level of significance. The result of the analysis revealed that inadequate salaries and wages may lead to brain in the education sector. The study also reveals that salaries and wages help employees to achieve organizational goals and objectives and it was recommended that the study educational sector  should make sure that  the compensation rewards  given to the employees is in commensurate with the labour on service he / she rendered.

Chapter One of The Effect of Salaries and Wages on Worker’s Performance in Educational Sector

INTRODUCTION

BACKGROUND OF THE STUDY 

Salaries and wages are the main marketing tolls companies use to attract qualified employees, and it is one of the largest operating. Costs for large organizations. The long-term success of a firm perhaps its survival many depend on how well it can control employee cost and optimize employee efficiency.

For the owners of the company, wages and salaries represents a substantial part of the total costs of doing business. How well the company controls these costs and how much employee productivity. If obtains in return can have an important effect on the success of the enterprise.

The employee’s view of wages and salaries structure is generally different in important respects from that of the company. This is one of the key compensation problems in many enterprises. Even when the pay programme is sound, well administered, and effectively communicated, difficulties can arise if employee aspirations are out of phase with company objectives or if !he employee’s concept of a fair and equitable programme is different from that of the company.

To some extent, there are always some conflicts between employees aspiration and company need. For instance, employees always want more; but employers need to control wages costs or at least administer the pay programme within the restraints of their financial capacity. These criteria of course are not totally at odds. As cost of living rises and as pay levels in the labour market increase in an inflationary economic the company must increase its employee’s pay in order to attract and retain the number of people necessary to run the business. The conflict of view is one of degree; .an employee aspiration typically exceeds company needs for granting increases (Obikoya, 1996).

Anemployee’s definition of “fair” wages and salaries will depend upon their perception of their role and relative importance within the organization compared to other people for most people, the pay cheque or salary cheque represents their main source of income and is required to maintain a certain standard of living. Inflation and using expectations mean that employees will constantly seek to increase the amount they are paid. Also, most people see their payment arrangements as part of the reorganization of their contribution towards the success of the organization. This, trade union might argue that employees have a ‘right’ to a share of the wealth of the organization that they have helped to create in order to boast their mokeices.

The objectives of a compensation plan is to motivate employees to function at higher level of performance and to attract and keep employees in the company. If the plan is to accomplish these objectives, employee must perceive it as equitable. Thus, the inability of non-equitable or employee been under paid has a negative impact on the performance of employees. Employees compare their rewards with others who perform essentially the same kind of task, either in the company or in competitor forms. The primary basis of comparison is money (wages or salary). Equity is evaluated in terms of the effort put into a task and the rewards received for that efforts if the rewards are perceived as equitable, employees will likely stay and be productive. However, if they perceive their rewards are not favourable the employees will not be effective and efficiency in their output.

Hence, an employee who feels underpaid feels undervalued and is likely to react by withdrawing, or looking for another job. Absenteeism, carelessness and similar difficulties ma result. Therefore, there is need for a study of this nature, since pay being about motivation in order for organizations to make optimum use of their human resources to achieve their desire goals and objectives.