Authors :
Idowu Sulaimon Adeniyi; Elizabeth Atinuke Dairo; Samuel Ayodeji Omolawal
Volume/Issue :
Volume 9 - 2024, Issue 2 - February
Google Scholar :
http://tinyurl.com/fdbab6t2
Scribd :
http://tinyurl.com/5d9vckff
DOI :
https://doi.org/10.5281/zenodo.10836650
Abstract :
Remuneration, the pay or reward for work is
very essential in ensuring effective performance of workers
in an organization. Remuneration consists of integrated
policies, processes and practices for rewarding employees
for their contributions, skills and competence. Overtime,
organizations with effective reward system are more likely
to achieve higher levels of productivity than others.
Therefore, the influence of good reward system in an
organization cannot be overemphasized. SMEs are known
for their great contributions to the economy thereby
bolstering the GDP of nations. However, there is dearth in
literature with regards to remuneration in SMEs. This
study was therefore designed to examine Staff
remuneration, particularly the issues, practices and
implications for Small and Medium Scale Enterprises in
Ibadan metropolis. Structural Functionalist Theory
provided a framework. A cross-sectional survey design
was employed and data were collected thereby using
quantitative and qualitative approaches with SMEs
owners and managers in Ibadan metropolis. A total of 200
copies of questionnaire were administered randomly and 4
In-depth interviews were conducted with owners and
managers of businesses in operation for over 5 years using
purposive sampling. Findings from the study revealed that
51.5% of respondents have an annual salary increase while
49.5% do not. Remuneration of workers is largely
determined by workers’ positions, skills, work experiences,
qualifications, and distance of workers’ residences to
work. Issues associated with the staff remuneration are
insufficient funds and high demands form skillful workers.
Therefore, an effective remuneration system has positive
implications on SMEs as it serves as a propelling force for
commitment of workers and motivation that gives the
employees the impetus to perform work better in
workplace.
Keywords :
Staff Remuneration, Work, Skill, Practices, Small and Medium Scale Enterprise.
Remuneration, the pay or reward for work is
very essential in ensuring effective performance of workers
in an organization. Remuneration consists of integrated
policies, processes and practices for rewarding employees
for their contributions, skills and competence. Overtime,
organizations with effective reward system are more likely
to achieve higher levels of productivity than others.
Therefore, the influence of good reward system in an
organization cannot be overemphasized. SMEs are known
for their great contributions to the economy thereby
bolstering the GDP of nations. However, there is dearth in
literature with regards to remuneration in SMEs. This
study was therefore designed to examine Staff
remuneration, particularly the issues, practices and
implications for Small and Medium Scale Enterprises in
Ibadan metropolis. Structural Functionalist Theory
provided a framework. A cross-sectional survey design
was employed and data were collected thereby using
quantitative and qualitative approaches with SMEs
owners and managers in Ibadan metropolis. A total of 200
copies of questionnaire were administered randomly and 4
In-depth interviews were conducted with owners and
managers of businesses in operation for over 5 years using
purposive sampling. Findings from the study revealed that
51.5% of respondents have an annual salary increase while
49.5% do not. Remuneration of workers is largely
determined by workers’ positions, skills, work experiences,
qualifications, and distance of workers’ residences to
work. Issues associated with the staff remuneration are
insufficient funds and high demands form skillful workers.
Therefore, an effective remuneration system has positive
implications on SMEs as it serves as a propelling force for
commitment of workers and motivation that gives the
employees the impetus to perform work better in
workplace.
Keywords :
Staff Remuneration, Work, Skill, Practices, Small and Medium Scale Enterprise.
