Economic Environmental Factors and Employee Performance in Food and Beverage Manufacturing Firms in Enugu State

This study examined the relationship between economic environmental factors and employee performance in food and beverage manufacturing firms in Enugu State, Nigeria. The specific objectives were to examine the relationship between the inflation rate and employee output, and to determine the relationship between interest rates and employee retention in food and beverage manufacturing firms in Enugu State. The study adopted a descriptive survey research design. The population comprised 297 selected senior staff members of the firms under study. The entire population was included in the study because of its relatively small size. Of the 297 questionnaires administered, 256 were returned and correctly completed. The data were presented and analysed using mean scores and standard deviations based on a Likert scale, while the hypotheses were tested using the Z-test statistic. The findings indicated that the inflation rate had a significant positive relationship with employee output (Z = 10.063, p > 0.05). Similarly, interest rates had a significant positive relationship with employee retention in food and beverage manufacturing firms in Enugu State (Z = 10.188, p > 0.05). The study concluded that the inflation rate and interest rates had significant positive relationships with employee output and employee retention, respectively, in food and beverage manufacturing firms in Enugu State. Based on these findings, the study recommended, among other measures, that management should adopt a proactive compensation policy that periodically reviews wages and adjusts them in line with the prevailing inflation rate.