ABSTRACT
The study exammes effect of new minimum
wage on employee turnover intention in public sector. The objective of the
study was to examine the relationship between the new minimum wage and employee
turnover. The survey research method was adopted and a sample size of 68 respondents
was selected from the population of study through stratified random sampling
technique. Questionnaires were administered as the instrument of data
collection and statistical tools were employed for data analysis. Findings of
the research reveal that the new minimum wages is a step in the right
direction. However, the determination of the wages without the input of the
trade union representatives has generated a lot of controversies but does not
have significant negative effect on labour turnover in the public sector. It
was recommended among others that government should desist from the practices
of unilateral determination of wages and salaries in the public sector. Workers
wages should be considered a crucial issue.
TABLE
OF CONTENTS
CHAPTER
ONE
Introduction
1.1 Background to
the Study
1.2 Statement of
Problem
1.3 Objectives of
the Study
1.4 Research
Questions
1.5 Research
Hypotheses
1.6 Significance of
the Study
1.7 Scope and
Limitation of the study
1.8 Definition of Terms
CHAPTER
TWO
Literature Review
2.1 Introduction
2.2 The Concept of
Minimum Wages
2.3 The Right to
Minimum Wage
2.4 The New Minimum
Wage
2.5 Issues and
Challenges of the New Minimum Wage
2.6 Labour Market
Situation
2.7 Historical
Perspective on Salary and Wage Reviews
CHAPTER
THREE
Research Methodology
3.1 Introduction
3.2 Research Design
3.3 Population of
Study
3.4 Sample and
Sampling Technique
3.5 Instrument of
Data Collection
3.6 Method of Data
Collection
3.7 Method of Data
Analysis
3.8 Validity of the
Instrument
3.9 Reliability of
the Instrument
CHAPTER
FOUR
Data Analysis and Interpretation of Results
4.1 Introduction
4.2 Respondents
Characteristic and Classification
4.3 Analysis of
Respondent's View on the Effect of New Minimum Wage on Employee Turnover
Intention in the Public Sector
4.4 Test of
Hypotheses
4.5 Discussion of
Findings
CHAPTER
FIVE
5.1 Introduction
5.2 Summary of
Findings
5.3 Conclusion
5.4 Recommendations
5.5 Suggestion for
Further Studies
CHAPTER
ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
Organizations invest a lot on their
employees in terms of Induction and training, developing, maintaining and
retaining them in their organization. Therefore, managers at all costs must
minimize employee's turnover. Although, there is no standard framework for
understanding the employees turnover process as whole, a wide range of factors
have been found useful in interpreting employee turnover, one of such crucial
facto is pay (Kevin, 2004).
Pay reform has been an important issue in
public service management throughout the world over the past two decades. Pay
is a significant feature of human resources management, and these resources are
the most crucial factor in the delivery of public services. The economic crises
and the attendant deterioration in service delivery that confronted most
governments in the 1970s and 1980s have brought public service employment and
pay reform at the fore of the policy agenda in virtually every country, except
the mineral-rich exporters, since the early1980s (Kiragu, 2003).
Minimum wage issues have been a major
factor in the determinant of workers stay on the job in the Nigeria public
sector. However, the extent to which workers is satisfied on the job is also
another area of interest in public discuss. Therefore, this study shall be
conducted to examine the effect of minimum wage administration on worker
turnover in the civil sector.
1.2 STATEMENT OF PROBLEM
The minimum wages payable to civil
servants in Nigeria has been review over the years in a bid to better the lots
of the public service workers. However, the review has been met with several
confrontations which often led to series of industrial actions led by the
labour unions in the country.
Recently, the federal government
introduces the new minimum wages designed to offer workers a basic pay of
#18,000. This had generated several controversies as well as many crisis in
form of strike actions, absenteeism, sabotage and many more on the part of the
workers.
In the heart of the controversy is the
fact that some state government have refused to honour the agreement. The Lagos
State government is one of those states with strong argument against the
payment of the new minimum wage.
It is therefore pertinent to investigate
how the new minimum wages have affected employee turnover in the Lagos state
civil service.
1.3 OBJECTIVES OF THE STUDY
The primary objective of the study is to
examine the effect of the new minimum wage on employees' turnover in Lagos
State. However, the specific objectives shall include:
i.
To examine the relationship between minimum
wage and employee turn over in the public sector.
ii.
To assess the effect of failure to honour the
new minimum wage legislation on the performance of workers in the public
sector.
iii.
To investigate the role of Labour unions in the
wages and salary administration in the public sector.
iv.
To find ways by which cnsrs relating to mimmum
wages administration can be resolve.
1.4 RESEARCH QUESTIONS
The following questions shall guide the
study:
i.
Is there any the relationship between minimum
wage and labour turnover in the public sector?
ii.
What is the negative effect of failure to
honour the new minimum wage legislation on the performances of workers in the
public sector?
iii.
What are the role of Labour unions In the wages
and salary administration in the public sector?
iv.
In what ways can the Crisis relating to minimum
wages administration be resolve?
1.5 RESEARCH HYPOTHESES
The following hypotheses shall be tested
in the course of the study; Hypothesis 1
Ho:
There is no significant relationship between the minimum wage administration
and labour turnover in the public sector.
HI: There
is a significant relationship between the minimum wage administration and
labour turnover in the public sector.
Hypothesis
2
Ho: Labour unions do not play
significant role in the wages and salary administration in the public sector.
HI: Labour unions plays a
significant role in the wages and salary administration in the public sector.
1.6 SIGNIFICANCE OF THE STUDY
Following the introduction of the new
minimum wage in the civil service, there have been several issues revolving
around how the new minimum wage affects the workers. Therefore, this study will
be of significance in the following areas:
Government at both the federal and state
level will find the study useful in the area of implementation of the new
minimum wage as the findings of this research will help them to realize the
implications on civil servants.
Students as well as other researchers will
find the outcome of this study relevant to future research in the area of wage
administration in public sector.
1.7 SCOPE AND LIMITATION OF THE STUDY
The scope of the study covers the effect
of the new minimum wages on labour turnover in the Lagos State civil service.
Focus was on the review of previous minimum wages and how they affect the
condition of service of workers. However, the scope of the study is limited to
workers in the Lagos State Secretariat Alausa, IkejaLagos State.
1.8 DEFINITION OF TERMS
The following are the definitions of terms
used in the course of the study:
Incentives:
Benefits given to employees to motivate them for efforts expanded at work.
Minimum
wages: The minimum sum payable to a worker for work performed or
services rendered within a given period.
Salary: This
refers to the recommendation of executives, supervisors, office employees and
salesmen hired on a basis other than hourly rate, such as weekly, biweekly,
semi monthly or annually.
Turnover: This
refers to the rate at which employees leave an organization for another for one
reason or the other.
Wages: This
refers to compensation paid on workers hired on an hourly basis and who are
paid the actual spent on the job.
Wage
Commission: Government agency or committee set up to review wages and
salaries of workers.
Turnover: is
the process through which staff leave a business or organization and that
business or organization replaces them. Turnover intention is a measurement of
whether a business' or organization's employees plan to leave their positions
or whether that organization plans to remove employees from positions. Turnover
intention, like turnover itself, can be either voluntary or involuntary.
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