Evaluating Employee Motivation on Performance of Small and Medium Enterprises (SMEs) of Private Sector in Nigeria

Abstract

Employees are the engine of organization while motivation is the fuel. No organization can achieve its stated objective without employees. The aim of this study was to investigate employees’ motivation on the performance of Small and Medium Enterprises in Private Sector in Nigeria. This was achieved by finding out ways through which employees are motivated, examined the impact of motivation, determined the factor that increase motivation on the performance of private sector SMEs in Nigeria. The methodology adopted for data collection was descriptive survey design. Cluster sampling was used to collect equal number of private organizations registered with Corporate Affairs Commission (CAC) in Lagos and Abuja towns of Nigeria. A structured questionnaire was designed based on both open and closed ended questions structured according to the research objectives. A total number of 206 questionnaires were sent out and only 144 representing 70% were returned and deemed useable. The data was analyzed using percentage for descriptive and multiple regression for inferential analysis respectively. The study established that employee motivation is a necessity for performance of SMEs in private sector in Nigeria. The study concluded that all the independent variables used for the study have significant role in the performance of SMEs in private sector in Nigeria. The study recommended that motivation offered to employees by organizations should be those that would meet employee expectations in terms of their basic needs like physical, safety and social needs.