National Minimum Wage and Workers’ Productivity in Lagos State Civil Service

Abstract

Workers' productivity is the concern of every employer as it defines how the organization grows. In most cases, some organizations do not pay attention to how productive their employees are. Among factors that influence workers' productivity, wages serve as the pivotal. This shows how important an efficient wage is to every employee. This study employs a quantitative approach using survey data from civil servants in Lagos State to examine how national minimum wage adjustments impact productivity. 342 employees of Lagos State Lands Bureau were sampled. Simple regression was employed in testing the hypothesis. Result indicated that an increase in minimum wage in Nigeria had a significant positive effect on workers' productivity (β = 0.363, p-value = 0.000 < 0.05). The findings reveal that while wage increments enhance motivation, their effect on overall efficiency is moderate. This implies that government should keep increasing the national minimum wage with a significant value as this would enable workers to put in their best. The study concludes that minimum wage influences workers’ productivity.