The effect of performance incentives on employee productivity in Nile petroleum corporation (Nilepet) in Juba, South Sudan.

Abstract

The study established the effect of performance incentives on employee productivity in Nile Petroleum Corporation (Nilepet) in Juba South Sudan. Four specific objectives guided the study; to determine the effect of financial performance incentives on employee productivity in Nilepet, to evaluate the effect of non-financial performance incentives on employee productivity in Nilepet and to examine the extent at which working environment affects performance incentives for improved employee productivity in Nilepet. The study adopted a case study design with both qualitative and quantitative aspect. A sample of 118 respondents was selected from 170 target population with the help of Krejcie and Morgan (1970). The study descriptive statistics (Mean and SD), Pearson’s linear correction coefficient, and regression model were used in data analysis of data collected through questionnaire. The main result indicated that performance incentives in form of financial incentives and non-financial incentives highly contributed positively to employee productivity in Nilepet by 72%. Financial performance incentives had a significant effect on employee productivity in Nilepet because the p-value was less than the significance level (0.01). Employee productivity in Nilepet is dependent on o financial performance incentives by 74.4%, A one unit change in financial incentives, results to .466 positive changes in employee productivity in Nilepet. Employee productivity in Nilepet, Juba was dependent on non-financial performance incentives by 67%. The descriptive The descriptive results on working environment indicated a mean result of 2.93. The study in general, it is concluded that performance incentives have positive and significant effect on employee productivity in Nilepet Juba South Sudan. Financial incentives are good propellers of employee productivity and non-financial incentives can explain employee productivity to a reasonable extent in Nilepet in Juba South Sudan. The study recommends that Human Resource Departments of petroleum companies like Nilepet should ensure that employees are rewarded both in terms of financial rewards, there is also need to harmonize the financial performance incentives in petroleum companies as a means to long term objectives and the strategies of the organization. Management should ensure employees are trained, recognized, given sick leave and their careers developed; should also appreciate the efforts of employees, work in safe and conducive work environment, under effective work supervision to get affective commitment from the employees and ensure that welfare services are provided to employees to enhance their commitment and work. The researcher recommends similar study on the effects of performance incentives on employee performance in other petroleum companies in South Sudan and East Africa as a whole and on exploring the effect of the country’s oil and petroleum regulatory policy on performance of petroleum companies in South Sudan.