EMPLOYEE BENEFITS AND PROFITABILITY OF LISTED MANUFACTURING FIRMS IN NIGERIA

Abstract

Manufacturing firms in growing economies like Nigeria do not have a well structured and implemented employee benefits packages as desired, thus, workers do not put in their best to work. The study made efforts to examine the effect of employee benefits on the profitability of manufacturing firms in Nigeria. The population of this study involved seventeen (17) manufacturing firms listed in the Nigeria Stock Exchange (NSE) as at 31^st December, 2017. Secondary source of data was used from the yearly reports and accounts published by the firms between 2010 and 2017. The study focused on reported earnings of seventeen (17) listed manufacturing firms in Nigeria between the periods 2010 and 2017. Panel data of 164 firm observations were used and analyzed by using least square regression technique. Findings from the study indicated that employee benefits have a significant effect on the profitability of listed manufacturing firms in Nigeria. Hence, this study will serve as a wakeup call for employers of labor and employee policy makers to be alert, with kin interest to giving incentives to employees in order to have an effective and efficient work force, attract and retain best-fit employees for increased performance and profitability in manufacturing firms in Nigeria.