1.1 Background of the Study
Employees are a fundamental part of the production process and therefore deserve to be treated with respect, dignity, and appropriate welfare benefits and incentives (Noguera, 2015). When workers are adequately compensated and supported, it enhances their self-worth, boosts their confidence, and improves their financial well-being. More importantly, such welfare support serves as motivation, helping workers value their jobs more and increasing their overall productivity (Thorsen, 2016). Organizations that are focused on sustainable growth rather than short-term profit maximization understand the importance of investing in employee welfare to ensure long-term success (Deeprose, 2016).
Conversely, a lack of proper incentives or the complete absence of welfare packages often leads to low worker morale, reduced output, and inefficiency. Other negative workplace conditions such as harassment or unsafe environments further compound this problem. Therefore, it is crucial for employers to prioritize the well-being of their employees by providing adequate welfare packages and incentives. This not only benefits the employees but also contributes positively to the overall health of the organization (Okereke & Daniel, 2020).
At both the national and international levels, concerted efforts have been made to establish labor standards that, while encouraging free market dynamics and minimizing excessive government interference, also protect workers’ rights through clear employment contracts. These efforts aim to create regulatory frameworks that guide labor relations and guarantee certain entitlements to workers (Oginni & Adesanya, 2019).
In Nigeria, the Constitution remains the most authoritative legal document, outlining the roles, responsibilities, and rights of individuals and institutions, including labor rights. It plays a central role in establishing and protecting the welfare rights of workers (Okene, 2019). Since Nigeria operates under a federal system of governance, powers are distributed between the federal government and its constituent parts, including states and local governments—a structure that must be taken into account when analyzing labor and welfare matters (Suberu, 2021).
However, issues concerning labor regulation are under the exclusive jurisdiction of the federal government, regardless of the governmental level involved (Aiyede, 2022). The term "welfare" in this context reflects an organization's commitment to the well-being of its employees, manifested through the quality of the work environment and the support provided across all organizational levels. Coventry and Barker (2018) outline a range of welfare services employers should consider, including but not limited to: access to sports facilities and social clubs, employee supervision, canteens, health clubs, savings schemes, pension plans, leave entitlements, emergency financial support, legal aid, personal counseling, long-service awards, relocation assistance, and fringe benefits such as sick pay and meal vouchers. These offerings collectively represent a broader commitment to employee satisfaction and well-being. On the other hand, performance is typically measured by the quantity of goods or services produced within a given timeframe relative to the resources utilized (Schneider, 2020). According to Cohen, Lucy, Huge, Thomson, and Edmond (2021), performance also reflects how effectively an organization operates to meet internal and external customer expectations. Productivity, in essence, measures how efficiently employees utilize resources and the quality of outcomes they generate. However, this study posits that fuel station employees in Nigeria often fall short of expected performance standards, largely due to poor welfare conditions. Many employees receive minimal benefits, which leads to frustration and unethical behavior, including fuel theft, manipulation of fuel dispensing machines, and other dishonest practices. In response to these challenges, this research focuses on examining the relationship between welfare provisions and informal practices among employees of filling stations in Eti-Osa Local Government Area.
1.2 Statement of the Problem
In today’s uncertain socio-economic environment, there is a growing emphasis on individuals and leaders who uphold organizational values, contribute meaningfully to operations, and foster a culture of value addition (Acheaw, 2021). In recent times, factors such as job security, welfare programs, and opportunities for skill application have increasingly influenced employee job satisfaction. These realizations have highlighted the importance of welfare strategies in enhancing employee engagement and performance.
Dauda (2020) asserts that welfare schemes—whether direct monetary benefits, non-monetary incentives, or motivation-based rewards—are critical components of the employment relationship. These schemes are shaped by various external forces, including labor market conditions, union negotiations, government policies, regulatory frameworks, and the attitudes of top management toward employee compensation.
Numerous studies confirm that welfare incentives significantly boost employee performance, morale, loyalty, job satisfaction, and overall organizational productivity. Conversely, the absence of effective welfare measures can lead to demotivation, inefficiency, and low productivity, severely affecting organizational outcomes.
In the case of many filling station workers in Nigeria—particularly pump attendants—wages are often inadequate. Moreover, these employees typically receive little or no welfare support. This situation compels many of them to resort to informal, unethical practices in an attempt to meet basic living needs. Common examples include selling fuel to black market operators, accepting bribes to prioritize desperate customers, inflating fuel prices opportunistically, and other dishonest behaviors.
As a result of these persistent issues, many filling stations have had to adopt crisis management strategies to protect their businesses and customers (Acheaw, 2021). Given that existing control mechanisms have largely failed, there is an urgent need for a proactive approach centered on welfare policies as a means of addressing these challenges. Therefore, this study aims to explore the link between employee welfare provisions and informal practices among filling station workers in Eti-Osa Local Government Area.
1.3Research Questions
The study will be guided by the following questions;
a. Is there any significant relationship between welfare packages and on the job performance of filling station employee in Eti osa local government?
b. Is there an adequate availability of welfare packages for filling station employees in Eti osa local government?
c. What are the informal practices carried out by filling station employees in Eti osa local government?
d. What are the welfare packages required to curtail the of prevalence of informal practices carried out by filling station employees in Eti osa local government?
1.4Objectives of the Study
The broad objectives of this study is to evaluate Welfare Provisions and Informal Workplace Practices Among Fuel Station Employees in Eti-Osa Local Government Area. The other specific objectives includes:
1. To ascertain whether there is a significant relationship between welfare packages and on the job performance of filling station employee in Eti osa local government.
2. To find out whether there is an adequate availability of welfare packages for filling station employees in Eti osa local government.
3. To investigate the informal practices carried out by filling station employees in Eti osa local government.
4. To investigate the welfare packages required to curtail the of prevalence of informal practices carried out by filling station employees in Eti osa local government.
1.5 Research Hypotheses
Ho1: Welfare packages has no significant effect on the job performance of filling station employee in Eti osa local government.
Ha1: Welfare packages has a significant effect on the job performance of filling station employee in Eti osa local government.
Ho2: There is no adequate availability of welfare packages for filling station employees in Eti osa local government.
Ha2: There is an adequate availability of welfare packages for filling station employees in Eti osa local government.
1.6 Significance of the Study
The study is significant as it will critically evaluate the relationship between welfare packages and job efficiency. Therefore this study is significant because of its effect on the realization of organizational goals.
The study is also significant because it will guide the management of Edo State Information and Communication Technology (I.C.T) Unit and the general public on how to improve the welfare conditions of workers as a means of improving job productivity.
The study is significant to the academic community as it will contribute to the existing literature.
1.7 Scope and delimitation of the Study
The study will ascertain whether there is a significant relationship between welfare packages and on the job performance of filling station employee in Eti osa local government. The study will also find out whether there is an adequate availability of welfare packages for filling station employees in Eti osa local government. The study will further investigate the informal practices carried out by filling station employees in Eti osa local government. Lastly, the study will investigate the welfare packages required to curtail the of prevalence of informal practices carried out by filling station employees in Eti osa local government.
Like in every human endeavour, the researchers encountered slight constraints while carrying out the study. Insufficient funds tend to impede the efficiency of the researcher in sourcing for the relevant materials, literature, or information and in the process of data collection (internet, questionnaire, and interview), which is why the researcher resorted to a moderate choice of sample size. More so, the researcher will simultaneously engage in this study with other academic work. As a result, the amount of time spent on research will be reduced. Hence, the study will be delimited to Eti- Osa local government area of Lagos State.
1.8 Conceptual Clarifications
Welfare packages: These are direct and indirect compensations given by an organization to persons or groups of persons in return for a job done, services or a contribution made towards the accomplishment of organizational goals.
Informal practices: open secrets, unwritten rules and hidden practices of getting things done
Filling station: a petrol station
Employee: a person employed for wages or salary, especially at non-executive level.
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