Effect of incentives on workers’ productivity in Seven-Up Bottling Company, Ibadan, Oyo State, Nigeria. Ajagbe, F. A., Adegbite, D. O., & Abiodun, J. A.


This study determined the effect of incentives on workers’ productivity in Seven-up Bottling Company, Ibadan, Nigeria. The study utilized a structured questionnaire to collect primary data. The stratified random sampling technique was used to draw 110 sample elements from the surveyed population. The analysis of data was done using descriptive and inferential statistics. Specifically, the Logit regression was used to test the impact of incentives (salary, job security, and bonus) on workers’ productivity. The regression analysis was facilitated by STATA 11.0. The results revealed that salary with a coefficient of 2.64 positively affects workers’ productivity. This result implies that increase in salary will result in higher worker productivity. The results also show that job security has positive impact on workers’ productivity with a coefficient of 2.13. This reveals that job security is an important determinant of workers’ productivity. The results also show that bonuses with a coefficient of 8.8 also have positive impact on workers’ productivity. The study thus concludes that incentives in terms of salary, job security and bonuses increases workers’ motivation to invest their best in their job, hence increase organizational productivity. The recommends that Seven-up Bottling Company should contrive policies that translates to adequate financial and non-financial incentives that motivate employees; and results in enhanced organizational productivity and overall sustainability.

Keywords: Incentives, Workers’ Productivity, Seven-up Bottling Company Ibadan, Nigeria.

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