EFFECT OF ECONOMIC INCENTIVES ON EMPLOYEE COMMITMENT IN ADELEKE UNIVERSITY, EDE,OSUN STATE

Abstract: This study examined the effects of economic incentive on employee Commitment in Adeleke University, Ede, Osun-State. The objectives were to investigate the effect of basic salary on employee commitment; examine the effect of retirement plan on employee commitment and determine the effect of recognition and awards on employee commitment in Adeleke University, Ede, Osun-State. The study employed simple regression analysis as estimation techniques. The data were analyzed from the information collected through questionnaires. From the empirical results, the coefficient of basic salary is given as 0.397 and 0.083, this shows that basic salary is positively related to employees commitment in Adeleke University, Ede, Osun-State and therefore implies that increase in basic salary will result into 39.7% and 8.3% increases on employees commitment. The overall results revealed that economic incentives have significant impact on employee's commitment in Adeleke University, Ede, Osun-State. The study concluded that there is a significant and positive relationship between economic incentives and employee commitment. The study therefore recommended that The University administration should strive harder to sustain the recent increase in salary and allowances of the workforce in the University. The University should use more of monetary incentives as often as possible particularly with employees on lower levels.