EFFECT OF EMPLOYEE WELFARE PACKAGES ON THE PERFORMANCE OF EMPLOYEES OF SELECTED MANUFACTURING FIRMS IN THE FCT-ABUJA

Abstract

This study examined the impact of non-financial welfare packages, specifically career development opportunities, workplace recognition, supportive work environment, and employee engagement on employee performance within the manufacturing sector of the Federal Capital Territory (FCT), Nigeria. Though inadequate welfare practices have been linked to low productivity and high turnover in manufacturing sector of the Federal Capital Territory (FCT), Nigeria. A descriptive survey design was employed, with data collected from 239 employees across selected the manufacturing firms in FCT using structured questionnaires. Partial Least Squares Structural Equation Modelling (PLS-SEM) was used for data analysis to assess both the measurement and structural models, ensuring robustness in evaluating latent relationships. Findings revealed that career development opportunities and employee engagement have a statistically significant positive effect on employee performance, while a supportive work environment also contributes significantly, though negatively in direction, suggesting complex dynamics. Workplace recognition, however, did not show a significant relationship. The study concludes that strategic implementation of non-financial welfare packages is essential for enhancing performance in the Nigerian manufacturing sector. It is recommended that firms should prioritize structured career development programs, foster engaging work environments, and re-evaluate recognition strategies to align with employee expectations and improve overall organizational outcomes.