EXECUTIVE COMPENSATION PACKAGES AND JOB SATISFACTION
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EXECUTIVE COMPENSATION PACKAGES AND JOB SATISFACTION
ABSTRACT
The study looks at executive salary packages and work satisfaction in fast-moving consumer products industries. The investigation focused specifically on Cadbury, Nestle, and Dangote Nigeria Plc. The study used a descriptive survey method.
The study’s population consists of all management staff from Cadbury, Nestle, and Dangote Nigeria Plc. The study used a basic random sampling technique to choose its sample. Data for the study were gathered through the use of a standardised questionnaire.
The acquired data were analysed using descriptive statistics (mean and standard deviation), and the hypothesis was verified using regression techniques. All analyses were carried out using SPSS.
The investigation finds that executive remuneration packages such as long-term incentives and retirement plans have a favourable and considerable impact on work satisfaction in fast-moving consumer goods companies.
It was also discovered that annual incentives, bonuses, and supplemental retirement plans have a negative and significant impact on job satisfaction among managerial staff of fast-food enterprises.
It was suggested that fast-moving consumer goods corporations support long-term incentive plans and retirement plans for their management staff since they boost job satisfaction.
Chapter one
INTRODUCTION
1.1 Background for the study
In today’s organisations, employees are the primary resources used to attain all other goals. Today’s organisations have a variety of staff types, and work happiness boosts effectiveness. Millan (2011) suggested that employees in the United States will exhibit pleasure positive attitudes when they are content with their jobs.
As a result, great work satisfaction increases an organization’s productivity, which improves overall performance. When employees are dissatisfied, they become detached from their work obligations, which has a detrimental impact on the organization’s performance.
According to Bozeman and Gaughan (2011), the sense of being paid fairly predicts job satisfaction in Ghana. They also claim that there is a positive and significant association between executive remuneration and work satisfaction. Job satisfaction is defined as an individual’s attitude and behaviour towards components of their own job.
Personal job satisfaction is an affective or emotional response to multiple aspects and results of one’s employment, which means that personal job happiness is not uniform, as a person may be content with one part of his or her job but unsatisfied with the others.
According to Adamaechi and Romaine (2012), job satisfaction is critical in any type of group or organisation in Nigeria, and it might make the difference between success and failure for any group or joint effort. As a result, in order for the organisation to accomplish its aims of employee job satisfaction, the workers must be fairly compensated.
According to Popoola (2007), people in the twenty-first century place a greater emphasis on their lifestyle and the money they make from their jobs than their predecessors.
However, it is uncertain if many of them would continue working, if it were not for the money they receive. Employees want a compensation plan to be fair and equal, to deliver concrete incentives commensurate with their skills, and to provide recognition and a livelihood.
Executive remuneration is a crucial element in Human Resource Management in today’s French organisations, and how it is given sends a message to top employees about what the organisation values and wants to encourage (Rodgers & Gago 2013). For organisations, CEO compensation typically accounts for a significant amount of operating costs.
However, some businesses see this just as a cost, failing to recognise the strategic benefits of a well-thought-out executive salary and benefits plan. Executive compensation is thus a critical component of South Africa’s human resource management system, and it should be designed to work in tandem with other system elements (for example, organisational goals, professional development,
principal leadership, worker recruitment and selection) to improve performance (Dulebohn and Werling, 2007). Money not only helps people meet their basic requirements
but it also plays an important role in giving higher-level need satisfaction, as reported by (Dulebohn & Werling, 2007). As a result, most employees assess employment based on how much they receive from it.
It is vital to highlight that both managers and subordinates are working towards the objective of achieving organisational profitability in order to secure their pay and benefits. The study suggests that job happiness is important to evaluate, particularly when an executive remuneration package policy is in place in the organisation.
In Nigeria, executive compensation packages differ significantly from standard pay packages for hourly workers, salaried managers, and professionals in that executive pay is greatly biassed towards rewards for actual results (Akindele, 2014). As a result, if a company underperforms, CEOs often receive a lower percentage of their prospective income.
In contrast, if a company accomplishes its annual objectives and the stock price rises over time, the executives will receive a significantly greater dividend. There is no question that any manager who receives little compensation will undoubtedly compel his or her subordinates to do severe work with little regard for their welfare.
The executive compensation package is designed to reward firm performance and connect executive pay with shareholder value. As a result, unlike most other employees, the bulk of CEO pay is at risk, which means that executives may never get it.
However, if executives and the company do well, they and the company’s shareholders stand to benefit significantly from superior performance. Based on all of these factors
the study concluded that it was worthwhile to investigate CEO compensation packages and their impact on authoritarian management style in a selected fast-consuming good company in Nigeria.
1.2 Statement of the Problem
Several studies have failed to investigate the issue of job satisfaction resulting from the widespread use of executive compensation packages in organisations. Executive salary has a significant impact on productivity. Workers must be satisfied with their jobs in order to function effectively.
There have been numerous concerns concerning organisational performance in Nigeria as a result of economic crises. Executive salary is determined by organisational performance and productivity; thus, work happiness of top employees may be dependent on the company’s performance.
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