Influence of Reward System on Employees’ Efficiency in Government Technical Colleges in Ondo and Osun States

Influence of Reward System on Employees’ Efficiency in Government Technical Colleges in Ondo and Osun States

Ogundare, Korede James, Catherine Olayinka Adetifa

Department of Business Administration, College of Management Sciences

DOI: https://dx.doi.org/10.47772/IJRISS.2025.914MG00175

Received: 22 August 2025; Accepted: 30 August 2025; Published: 28 October 2025

ABSTRACT

This revised study investigates the influence of reward systems on employees’ efficiency in Government Technical Colleges across Ondo and Osun States, Nigeria. Building on existing findings, the paper integrates recent empirical studies (2018–2024) and enhances methodological clarity. A total of 290 respondents (170 employees and 120 students) were selected using a random sampling procedure, with questionnaires validated through expert review and a pilot test (Cronbach’s α = 0.82). Regression analysis demonstrates that financial rewards exert a significant positive influence on efficiency, while non-financial rewards such as recognition and professional development also play a role, though comparatively weaker. Comparisons across demographic categories (gender and occupation) reveal nuanced effects, particularly in perceptions of non-financial incentives. The findings emphasize the necessity of a balanced reward system that integrates both financial and non-financial elements to enhance institutional productivity. Policy implications are connected with ongoing Nigerian technical education reforms, stressing transparent reward systems and sustainable funding. Limitations and directions for future research are highlighted.

Keywords: reward system, employee efficiency, financial rewards, non-financial rewards, technical colleges, Nigeria

INTRODUCTION

Employee efficiency remains a cornerstone of organizational productivity, particularly within the education sector, where effective service delivery depends on motivated staff. Despite systemic challenges such as inadequate funding, infrastructure deficits, and frequent strikes, technical education in Nigeria requires a motivated workforce to deliver on its mandate. Reward systems—comprising both financial and non-financial incentives—have been identified as key mechanisms for fostering efficiency. This study explores the influence of reward systems on employees’ efficiency in Government Technical Colleges across Ondo and Osun States. In revising this article, the scope of literature, methodological rigor, and analytical depth are enhanced to align with contemporary human resource management (HRM) scholarship and technical education reforms.

LITERATURE REVIEW

Reward management is a critical domain in HRM practice, involving structured strategies to recognize employee contributions (Armstrong, 2012). Rewards are typically classified into financial (e.g., salaries, allowances, promotions) and non-financial (e.g., recognition, career development, supportive work environments). Classical theories such as the Efficiency Wage Theory and Expectancy Theory continue to frame debates on motivation. More recent scholarship, however, expands these insights into educational contexts.

Empirical evidence from 2018 onwards suggests that financial rewards remain strongly correlated with staff retention, commitment, and teaching quality in educational institutions (Akinyemi & Abiodun, 2019; Eze & Okeke, 2020). At the same time, studies highlight that non-financial rewards such as job autonomy, recognition, and professional development significantly affect morale, particularly among younger educators (Nwankwo & Ijeoma, 2021; Bello, 2022). International studies echo these findings: Johnson and Kabeer (2021) observed that hybrid reward packages fostered both efficiency and innovation in UK colleges, while Ahmed et al. (2023) confirmed that combining tangible and intangible incentives produced better employee outcomes in higher education institutions in Asia.

Despite these insights, gaps remain in understanding how reward systems operate across different institutional contexts in Nigeria’s technical education sector. This study contributes to filling this gap by providing empirical evidence from Government Technical Colleges in Ondo and Osun States, with comparative analysis by demographic variables.

METHODOLOGY

This study adopted a descriptive survey design to investigate the impact of reward systems on employees’ efficiency. The population comprised staff and students of Government Technical Colleges in Ondo and Osun States. From this population, a sample of 290 respondents was drawn using simple random sampling (170 employees, 120 students). Stratification ensured representation across departments.

Data collection employed structured questionnaires consisting of three sections: demographic data, financial and non-financial reward items, and measures of employee efficiency. The instruments were validated by HRM experts and piloted among 30 respondents outside the study sample. Reliability analysis using Cronbach’s alpha produced a coefficient of 0.82, confirming internal consistency.

Data analysis combined descriptive statistics (mean, frequency, percentages) and inferential analysis through multiple regression. The model estimated the influence of financial and non-financial rewards on employee efficiency, with coefficients, standard errors, and significance levels reported. Sub-group analyses compared effects across gender and occupation.

RESULTS AND DISCUSSION

Findings reveal that financial rewards significantly predict employee efficiency (β = 0.61, p < 0.01). This indicates that timely salaries, allowances, and promotions enhance work quality and commitment. Non-financial rewards also show a positive though smaller influence (β = 0.34, p < 0.05), consistent with Expectancy Theory, which suggests that recognition and supportive conditions reinforce motivation.

Table 1 presents the regression coefficients for financial and non-financial rewards.

Table 1: Regression Results

Model Summary: R² = 0.57, F(2, 287) = 85.3, p < 0.001

Comparative analysis shows that male respondents rated financial rewards as more influential than females, who emphasized recognition and supportive work environments. Similarly, academic staff valued financial incentives more strongly than administrative staff, who preferred career development opportunities. These findings suggest that tailoring reward systems to demographic and occupational categories enhances effectiveness.

The results align with recent Nigerian studies (Eze & Okeke, 2020; Bello, 2022) and international evidence (Johnson & Kabeer, 2021; Ahmed et al., 2023), affirming that a hybrid reward system delivers sustainable efficiency gains.

POLICY IMPLICATIONS

The findings have practical implications for Nigerian technical education policy. Current reforms emphasize workforce development, quality assurance, and retention of skilled educators. By linking rewards directly to employee efficiency, government institutions can reinforce accountability and motivation. Transparent salary structures, consistent promotion systems, and sustainable funding mechanisms should be prioritized. Additionally, institutionalizing non-financial rewards such as recognition programs and professional development workshops aligns with broader reform goals.

LIMITATIONS AND FUTURE RESEARCH

While this study strengthens understanding of reward systems in Nigerian technical colleges, certain limitations apply. First, the scope was limited to government institutions in two states, reducing generalizability. Second, the study relied on self-reported measures, which may be subject to response bias. Third, the absence of longitudinal data constrains insights into long-term effects. Future research should expand to private technical colleges, incorporate mixed methods (qualitative interviews), and examine sectoral comparisons across African education systems.

CONCLUSION

This article contributes to the scholarly conversation on HRM in education by empirically demonstrating the importance of reward systems in driving employee efficiency. Financial incentives remain the strongest predictors of staff performance, yet non-financial incentives such as recognition and professional development remain indispensable for sustaining motivation. The revised study broadens the literature base, clarifies methodology, and contextualizes findings within Nigeria’s ongoing technical education reforms. By adopting comprehensive reward strategies, policymakers and administrators can enhance workforce commitment and institutional productivity.

REFERENCES

1. Ahmed, R., Khan, S., & Malik, T. (2023). Reward systems and employee outcomes in higher education institutions: Evidence from Asia. Journal of Human Resource Development, 39(2), 112–128. https://doi.org/10.1177/09585187221102093
2. Akinyemi, B., & Abiodun, J. (2019). Reward strategies and teacher retention in Nigerian secondary schools. African Journal of Management Studies, 25(3), 45–62.
3. Armstrong, M. (2012). Armstrong’s handbook of reward management practice (4th ed.). London, UK: Kogan Page.
4. Bello, K. (2022). Motivation through recognition: Exploring non-financial rewards in Nigerian higher education. Nigerian Journal of HRM, 14(1), 77–91.
5. Eze, P., & Okeke, C. (2020). Linking pay and performance: Reward systems in Nigerian universities. Journal of African Education Research, 32(4), 201–218.
6. Johnson, M., & Kabeer, H. (2021). Hybrid reward systems in higher education: Evidence from UK colleges. International Journal of HRM, 34(7), 1334–1356.
7. Nwankwo, I., & Ijeoma, L. (2021). Job satisfaction and non-financial motivation among Nigerian teachers. Journal of Educational Leadership, 29(2), 59–75.