EFFECT OF REWARD SYSTEM ON EMPLOYEE PRODUCTIVITY IN SELECTED FOOD AND BEVERAGE MANUFACTURING FIRMS IN NIGERIA

This study examined the effect of reward systems on employee productivity in selected food and beverage manufacturing firms in Nigeria. A survey research design was adopted, utilizing structured questionnaires administered to 500 employees drawn from ten purposively selected firms out of eighteen listed on the Nigerian Exchange Group as of May 2024. Descriptive statistics such as frequency tables and percentage counts were used to summarize the demographic and perceptional data. Inferential statistics, particularly multiple regression analysis, were employed to assess the relationship between various reward components and employee productivity. The regression results showed that effective rewards (β = 0.988, p = 0.000) and non-financial rewards (β = 0.719, p = 0.000) had a statistically significant and positive influence on employee productivity. However, financial rewards (β = -0.429, p = 0.000) and adequate rewards (β = -0.333, p = 0.025) showed a significant but negative impact. The variable improved rewards (β = -0.190, p = 0.159) had a negative but statistically insignificant relationship with productivity. The findings imply that while certain reward types like effective and non-financial rewards boost employee productivity, others such as financial and adequate rewards may need restructuring or better alignment with employee expectations. The study recommends that management in the food and beverage manufacturing sector adopt a balanced and strategically structured reward system that emphasizes non-financial recognition and transparent performance-linked rewards to drive employee engagement and productivity