Employee Benefits and Employee Performance: Evidence from the Nigeria Social Insurance Trust Fund (NSITF)
DOI:
https://doi.org/10.56919/jbam.2621.009Keywords:
Correlation, Employee Benefits, Katsina State, NSITF, Performance, Productivity, RegressionAbstract
Employee benefits play an important role in shaping workforce motivation, productivity, and organizational commitment in public-sector institutions. This study examines the relationship between employee benefits and employee performance at the Nigeria Social Insurance Trust Fund (NSITF), Katsina Branch, using a cross-sectional survey research design. Data were collected from all 25 employees through structured questionnaires and analyzed using descriptive statistics, chi-square goodness-of-fit, Spearman correlation, and simple linear regression. The findings showed that NSITF provides benefits including allowances (32%), performance bonuses (24%), paid education leave (24%), and Christmas bonuses (16%), primarily to permanent staff. The benefit system received average ratings (M=3.12, SD=0.78), with major challenges including delays (44%), lack of uniformity (32%), and inadequate levels (24%). All respondents (100%) confirmed benefits positively affect productivity, with 96% reporting high/very high impact. Composite analysis showed strong positive correlation (r=0.68, p<0.001) between benefit satisfaction and performance impact. Regression confirmed predictive effects (β=0.79, p<0.001; R²=0.46), indicating each 1 unit-point increase in benefit satisfaction predicts 0.79-point performance improvement. It was therefore concluded that employee benefits have a significant positive effect on employee performance at NSITF, Katsina Branch.The study recommends broadening coverage to non-permanent staff, eliminating implementation delays, and performance-linked rewards. These findings underscore strategic benefit management as essential for enhancing employee performance in Nigerian public institutions.
References
Abubakar, M. S. (2022). Employee relations and organizational harmony in Nigerian public agencies: An empirical study. Journal of African Administrative Studies, 14(2), 45–62.
Adeleye, I. (2024). The future of work in Nigeria: Human capital management in a volatile economy. University of Lagos Press.
Adiele, K. C. (2025). Employee benefits and staff retention in Nigerian federal universities. Journal of Public Sector Management, 12(1), 45–62.
Anekwe, R. I., Obiezekwem, C. J., &Onuigbo, S. N. (2025). Indirect compensation and employee performance in Anambra State civil service. African Journal of Management Studies, 14(2), 88–105.
Armstrong, M., & Taylor, S. (2020). Armstrong’s handbook of human resource management practice (15th ed.). Kogan Page.
Asenge, E. L., Diugwu, I. A., &Soom, A. (2023). Employee welfare and productivity in Nigeria’s financial and educational sectors. Nigerian Journal of Management Sciences, 24(1), 112–129.
Chukwu, E., & Benson, O. (2023). Beyond the paycheck: The rise of non-financial benefits in post-pandemic Nigeria. African Journal of Business Management, 17(4), 112–128.
Dessler, G. (2020). Human resource management (16th ed.). Pearson.
Fischer, K. (2023). Total rewards strategy: A guide for 21st-century HR professionals. Sage Publications.
Hamilton, R. J. (2023). Aligning employee benefits with strategic organizational goals: A meta-analysis. International Journal of Human Resource Studies, 13(1), 89–105.
Kurniawan, H. (2025). Systematic literature review: The role of compensation in enhancing performance outcomes. Journal IlmiahEdunomika, 9(3).
Milkovich, G. T., Newman, J. M., & Gerhart, B. (2020). Compensation (13th ed.). McGraw-Hill Education.
Musa, S. A., & Ibrahim, G. (2022). Compensation management and employee productivity in the Nigerian public service: A study of selected federal agencies. Nigerian Journal of Public Administration, 9(3), 201–219.
Nguyen, T., Vo, P., & Tran, L. (2024). The impact of fringe benefits on job performance: Evidence from emerging economies. Journal of Global Organizational Behavior, 11(2), 33–51.
Nigeria Social Insurance Trust Fund Act. (1997). https://placng.org/lawsofnigeria/print.php?sn=348
Nigeria Social Insurance Trust Fund. (n.d.-a). About. https://nsitf.gov.ng/about/
Nigeria Social Insurance Trust Fund. (n.d.-b). Compensation. https://nsitf.gov.ng/compensation/
Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2020). Human resource management: Gaining a competitive advantage (11th ed.). McGraw-Hill Education.
Nwosu, H. E. (2025). Non-wage incentives and job satisfaction among Nigerian public servants. Journal of Public Administration and Policy Research, 17(1), 23–41.
Okonkwo, P. C. (2023). Equity theory and the Nigerian labor market: Analyzing the drivers of industrial action. Lagos Business School Review, 15(1), 77–94.
Oladipupo, T., &Onuoha, B. (2023). Performance management systems and employee commitment in the Nigeria Social Insurance Trust Fund (NSITF). West African Journal of Management, 22(3), 15–30.
Olowo, D. A. (2025). The Pension Reform Act and worker security in Nigeria: A ten-year retrospective. Academic Press Nigeria.
Robbins, S. P., & Judge, T. A. (2019). Organizational behavior (18th ed.). Pearson.
Rodriguez, M., & Smith, L. (2025). Expectancy theory in the digital workspace: Why valence matters more than ever. Journal of Applied Psychology and Work, 30(1), 120–138.
Suleiman, A. M., & Bello, Y. (2024). Organizational justice and employee engagement in Katsina State public service. Journal of Northern Nigerian Economic Studies, 6(2), 55–72.
Tan, H., & Lee, J. (2023). Flexibility as the ultimate benefit: Managing Gen Z in modern organizations. Human Resource Management International Digest, 31(5), 12–19.
Umar, F. (2022). Reinforcement theory and workplace motivation: A study of Nigerian civil servants. Zaria Journal of Social Sciences, 19(4), 88–103.
WorldatWork. (2021). The WorldatWork handbook of total rewards: A comprehensive guide to compensation, benefits, HR & employee engagement (2nd ed.). Wiley.
Zhang, X., Miller, S., & Gupta, A. (2024). Holistic wellness programs and their ROI on employee retention. Journal of Occupational Health and Strategy, 18(3), 210–225.
Downloads
Published
Issue
Section
License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
