The influence of compensation on public construction workers’ motivation in Jigawa state of Nigeria

Abstract

Compensation is the remuneration workers receive for their services or contributions to an organisation. Extant literature points to the fact that compensation packages have relationships with job motivation. A study established a theoretical framework based on the equity theory and used it to examine how compensation influences workers’ attraction, retention, motivation and job satisfaction. This paper concentrates on the connection between compensation and workers’ motivation. The Positivist paradigm guided this empirical research. A questionnaire was developed, pilot-tested and administered to gather data on workers’ motivation regarding four compensable aspects, namely: salary, allowances, gratuity and pension. A total of 265 questionnaires were administered and 260 were collected, representing a response rate of 98%. The respondents were selected using the stratified random sampling technique. The data collected was analysed using both descriptive statistics and Structural Equation Modelling SEM. The Structural Equation Modelling established that allowance and gratuity do positively and significantly influence public construction workers’ motivation in Jigawa state, Nigeria. The study focused on the public construction sector of Jigawa State, Nigeria. Therefore, the findings cannot be extended to the whole country.