EFFECT OF FRINGE BENEFITS ON THE PERFORMANCE OF WORKERS IN HOTEL AND CATERING INDUSTRY
(A STUDY OF ZODIAC HOTEL LIMITED ENUGU)
ABSTRACT
This research work examined Effect of Fringe Benefits on the Performance of Workers in Hotel and Catering Industry. A study of Zodiac Hotel Limited Enugu. The objectives of the study include to: find out the effect of retirement benefits on the performance of workers, ascertain the relationship between medical insurance and performance of workers, determine to what extent overtime pay affects the performance of workers and examine the effect of annual leave on the performance of workers. The major instrument of data collection was the questionnaire. The sources of data were the primary and secondary sources. The population of the study was 71 while the sample size of 71 was determined by applying the rule governing population and sampling. The data collected were presented in tables of frequencies and percentages using the five point likert scale. The hypotheses were tested using the chi-square distribution formula. The findings included that there is effect of retirement benefits on the performance of workers of Zodiac Hotel Enugu, there is a relationship between medical insurance, and performance of workers of Zodiac hotel Enugu, overtime pay significantly affects the performance of workers of Zodiac Hotel Enugu and there is effect of annual leave on the performance of workers of Zodiac Hotel Enugu. The researcher concluded that fringe benefits have a positive effect on the performance of workers in Hotel and Catering Industry and it was recommended that Management of organizations should always consider giving out retirement benefits,medical insurance should also be given out to the workers as it has an effect on their performance, organizations should also consider giving out overtime pay for workers that work beyond the stipulated closing time and workers should be given opportunity to go on annual leave as it rejuvenates their energy.  
TABLE OF CONTENTS
CHAPTER ONE
INTRODUCTION
1.1     Background of the Study                        
1.2     Statement of the Problem                        
1.3     Objectives of the Study                         
1.4     Research Questions                            
1.5     Statement of Hypotheses                         
1.6     Significance of the Study                        
1.7    Scope of the Study                             
1.8    Limitations of the Study                        
1.9    Historical Background Zodiac Hotel Lmited Enugu    
1.10    Operational definition of terms                    
CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1    Conceptual Framework                        
2.2     Theoretical Framework of the Study                
2.3    Empirical Review                              

2.4 Summary of Review of Related Literature            
2.5 Gap in the review of the related literature            
CHAPTER THREE
METHODOLOGY
3.1    Research Design                            
3.2    Sources of Data                            
3.2.1     Primary Sources                            
3.2.2 Secondary Sources                            
3.3    Area of the Study                            
3.4     Population of the Study                        
3.5    Sample Size Determination                     
3.6     Instruments for Data Collection                
3.7    Validity of the Instrument                     
3.8    Reliability of the Instrument                    
3.9     Method of Data Presentation and Analysis        
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND DISCUSSION OF FINDINGS
4.1    Data Presentation and Analysis                 
4.2    Bio-Data                                    
4.3     Data Relating To Research Questions            
4.3.1 Research Question One                        
4.3.2 Research Question Two                        
4.3.3 Research Question Three                        
4.3.4 Research Question Four                        
4.4    Test of Hypotheses                            
4.4.1 Test of Hypothesis One                        
4.4.2 Test of Hypothesis Two                        
4.4.3 Test of Hypothesis Three                        
4.4.4 Test of Hypothesis Four                        
4.5    Discussion of Findings                         
4.5.1 Discussion Based on Hypothesis One            
4.5.2: Discussion Based on Hypothesis Two            
4.5.3: Discussion Based on Hypothesis Three            
4.5.4: Discussion Based on Hypothesis Four            
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1    Summary of Findings                         
5.2     Conclusion                                 
5.3     Recommendations                             
5.4    Contribution to Knowledge                     
5.5     Suggestions for further Research                
List of References                             
Appendix    A                                
Appendix    B                                
CHAPTER ONE
INTRODUCTION
1.1    Background of the study
Fringe benefits have been identified as one of the effective ways management may adopt for attracting and retaining personnel, for motivating them to higher performance (Magurn, 2013:92). For an organization to meet its aim of survival and growth, there is need to devote more attention to the formulation of sound and good fringe benefit programme for the organization. The reason for this is that majority of the workers are mainly concerned with how much of their problems can be solved with the total pay package from the organization, especially in today’s Nigeria with the prevailing economic recession and general hardship.
    Mathis and Jackson (2014:78), opine that fringe benefits are forms of indirect compensation given to an employee or group of employees as part of organizational membership. Fringe benefits focus on maintaining (or improving) the quality of life for employees and providing a level of protection and financial security for workers and for their family members. Like base pay plans, the major objective for most organizational fringe compensation programme is to attract, retain and motivate qualified, competent employees.
    Bratton (2013:108), states that an employer that provides a more attractive benefits package, often enjoys an advantage over other employers in hiring and retaining qualified employees, when the competing firms offer similar base pay. Infact, such benefits may create “golden handcuffs” making employees more reticent to move to other employers. Some common examples are retirement plans, medical insurance, education reimbursement, time off, paid vacation and use of company car (Ifedi, 2012:74).
Adeyoye (2014:122), stated that the meaning attached to the fringe benefit programmes existing in many organizations are multifarious and this affects its success in achieving its goal to both the employees and the organizations. Human being is a complex entity. Managing him or her to increase productivity involves a number of variables, one of which is to identify those factors, which can incite him/her to contribute maximally to organizational growth and development.  Once these factors are identified and established, they can be manipulated in a way that will enable them, work effectively and efficiently for improved performance.
To Duru (2011:82), the need for the development of Hotel and catering industry in Nigeria, has been on the increase in the recent times. This arose out of a greater need to diversify the revenue base of the country, considering the persisting slide in the price of crude oil at the international market. The development of Hotel and catering industry has become pertinent because it provides the fertile ground for the growth and development of tourism industry. Tourism, as we know is the fastest growing industry in the world today. Considering the tourism potential in the country, it has been accorded a “preferred sector” status in the national economy, but tourism cannot grow, without a well established Hotel and catering industry.
    Unfortunately, it has been discovered by management expert that the hotel and catering industry in Nigeria has not been bracing up for some reasons, which border on the inability of the industry to roll out adequate pay packages, including fringe benefits, to the workers in the industry. It is based on this anomaly that the research wants to examine the effect of fringe benefits on the performance of workers in Hotel and Catering industry with Zodiac Hotel Limited, Enugu as a case study.   
1.2    Statement of the Problem
The consequences or effect of not giving out adequate fringe benefits to the workers in hotel and catering business has led to increase in labour turnover, absenteeism, lateness to work and inability of the workers to put in their best for the organization.
Inadequate fringe benefits have caused many of the workers of the hotel and catering industry to leave and find greener pastures elsewhere. Employees will like to remain in an organization, where their services are commensurate with their pay packages, which can take care of their financial needs. Hence, if the hotel and catering industry, do not offer such packages, including the fringe benefits, their workers are likely to find work in other industries.
Furthermore, according to the workers in the hotel and catering industry are known to be regularly absent from work, as a result of inadequate fringe benefits.  They feel that those days of absenteeism can be used to do work somewhere else to meet up with their financial needs.
However, lateness to work is another effect of not giving out adequate fringe benefits to workers in the hotel and catering industry.  This is a result of expressing their feelings, when they feel, they do not receive enough benefits from the organization. Other problems include that employers strive to cut costs, so as to make impressive profit.
1.3    Objectives of the Study
The broad objective of the study is to examine the effect of fringe benefits on the performance of workers in the hotel and catering industry. The specific objectives include to:
(1)    find out the effect of retirement benefits on the commitment of workers of Zodiac Hotel, Enugu
(2)    ascertain the relationship between medical insurance and absenteeism of workers of Zodiac hotel Enugu.
(3)    determine to what extent overtime pay affects the punctuality of workers of Zodiac hotel Enugu
(4)    examine the effect of annual leave on the quality of services of workers of Zodiac hotel Enugu.
1.4    Research Questions
Based on the objectives of the study, the following research questions were raised
(1)    What is the effect of retirement benefits on the commitment of workers of Zodiac Hotel, Enugu?
(2)    What is the relationship between medical insurance and absenteeism of workers of Zodiac Hotel, Enugu?
(3)    How does overtime pay affect the punctuality of workers of Zodiac Hotel, Enugu?
(4)    What is the effect of annual leave on the quality of workers of Zodiac Hotel, Enugu?
 
1.5    Statement of Hypotheses
Based on the research questions, the following hypotheses were formulated
Hypothesis One
H0:    Retirement benefits have no significant effect on the commitment of workers of Zodiac Hotel Enugu
H1:    Retirement benefits have0 significant effect on the commitment of workers of Zodiac Hotel Enugu
Hypothesis Two
H0:    Medical insurance has no significant relationship with absenteeism of workers of Zodiac Hotel Enugu
H1:    Medical insurance has significant relationship with absenteeism of workers of Zodiac Hotel Enugu
Hypothesis Three
H0:    Overtime pay does not affect the punctuality of workers of Zodiac Hotel Enugu to a large extent.
H1:    Overtime pay affects the punctuality of workers of Zodiac Hotel Enugu to a large extent.
Hypothesis Four
H0:    Annual leave has no positive effect on the quality of workers of Zodiac Hotel Enugu.
H1:    Annual leave has a positive effect on the quality of workers of Zodiac Hotel Enugu.
1.6    Significance of the Study
This research work is beneficial to the management of hotel and catering industry as they will be more enlightened on the importance of giving out adequate fringe benefits to the workers of their organizations. The government will benefit, as a vibrant hotel and catering industry will be a boost to the tourism industry and will positively affect the economy of the country.
    Furthermore, the researcher will benefit as the study is a partial requirement for the award of a Bachelor of Science (B.Sc) in Business Administration. The University will benefit as the research work increases its data bank.  Finally, the research will serve as a reference material for further research on this topic.
1.7    Scope of the Study
This research work covered the effect of retirement benefit, medical insurance, overtime and annual leave on the performance of the workers of Zodiac hotel Enugu.
1.8    Limitations of the Study
The researcher encountered some impediments in the course of carrying out this research work. Among them were finance, time and uncooperative attitude of respondents.
Finance:    The researcher spent some money browsing or surfing through the internet and printing out relevant materials related to the study.
Time:    The researcher, used part of the time for lecture to visit the organization under study and this made the researcher to miss some lectures.
Uncooperative Attitude of Respondents: The workers of Zodiac Hotel Enugu, were initially economical with information. But when they found out that the research was for academic purpose, they provided useful information relevant for the study.
1.9 Historical Background of Zodiac Hotel Limited Enugu
Zodiac Hotel Limited is a three star hotel located at Independence Layout Enugu. It is surrounded by numerous tourist attractions entertainment venues.
There are five categories of rooms ranging from single rooms to royal suites.
Guests and visitors can enjoy their favorite meals & drinks from our onsite restaurant.
The Hotel offers other services including dry cleaning services, housekeeping services, conference facilities for your business and social events etc. Zodiac Hotels is an affordable hotel in Independence Layout, Enugu.
All departments are broadly categorized in two parts:
1. Operational Department (Core Department):
•   Front office (revenue center)
•   Food & Beverage service (revenue center)
•    House keeping (cost center)
•   Food production (kitchen) (cost center)
2. Administrative Department (Non-Core Department)
•        Maintenance department
•        Account department
•        Human resource department
•        Electronic data processing department
•        Communication department
•        Security department
•        Purchase department
•        Stores
•        Sales & marketing department
Each department is equally important for proper functioning of hotel. Each department are been explained as follow:
FRONT OFFICE:
The main function of the department is:
•   To allot the room to the guest, called as check-in.
•   To maintain the room records for reservation and allocation.
•   To collect the room charges and other miscellaneous charges for various services used by guest during his/her stay at the hotel, at the time of departure of guest.
•   To take advance booking for rooms.
•   To handle the phone calls of hotel.
1.10    Operational Definition of Terms
Fringe Benefits: These are any form of benefits given to the workers outside the basic salary.
Employee Performance: This refers to how well an employee executes a particular task.
 Retirement Benefits: This is the benefits given to a retiree such as pension and gratuity.
Overtime: This is the payment made to an employee for working over the stipulated closing time .