Employee Welfare and Financial Performance of Listed Nigerian Manufacturing Firms.

Abstract

This study investigated the relationship between employee welfare and financial performance of listed manufacturing firms in Nigeria. It adopted the ex post factor research design, which made use of secondary data deployed using published annual reports of seven (7) listed manufacturing firms purposely selected from firms listed in the Nigerian Exchange Group bulletin over a seven (7) year period spanning from 2015-2021, and ensuring that data obtained are sufficient for a reasonable conclusion. Employee welfare was measured using employee remuneration and employee training while financial performance was measured using return on assets (ROA) and return on equity (ROE). Findings revealed a significant positive relationship between employee welfare (ER and ET) and financial performance in terms of ROA of listed manufacturing firms in Nigeria. Also, it was revealed that there is a significant positive relationship between employee welfare (ER and ET) and financial performance in terms of ROE of listed manufacturing firms in Nigeria. Therefore, the researcher concluded that there is a significant relationship between employee welfare and financial performance of listed manufacturing firms in Nigeria. Hence, the researcher suggested that management should continue training employees, boosting their confidence thereby making them masters of their skills and abilities and this will help them perform their duties efficiently and effectively; management should continue to pay their employees well to stimulate them to perform optimally and discharge their duties with utmost dedication, professionalism and diligence which would by extension guarantee high profitability.