An assessment of the impact of employee perceptions of total rewards fairness on employee engagement: A study of Nasco Group PLC

Abstract

The study set out to assess the impact of employee perceptions of total rewards fairness on employee engagement using NASCO Group PLC as a case study. Trust and fairness were identified as not only the bedrock for any successful and satisfactory reward system but a key driver of employee engagement. Employees are willing to invest their time and energy into productive activities where they trust that such will be rewarded. Employees perceptions of rewards fairness in influenced by both the criteria used and the distribution of rewards (procedural and distributive justice) and these approaches varies depending on the organizational strategy, culture and the business environment (society). In this study, equity, equality and need theories were identified as major determinants of rewards fairness and within the context of the Nigeria culture where a dominant culture of collectivism, masculinity and uncertainty avoidance exist, the most effective rewards elements that drive employee engagement are the financial rewards (base pay and merit pay) that are team-based on equality.