Indian Journal of Industrial Relations: Economics & Social Dev.

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Employee Engagement & Financial Performance of SMEs in Lagos State, Nigeria


Affiliations
1 Associate Professor Department of Employment Relations and Human Resourc Management, University of Lagos,, Nigeria
2 Senior Lecturer, Department of Employment Relations and Human Resource Management, University of Lagos, Nigeria
     

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This article examines employee engageme nt and f i nanci al pe rf ormance of SMEs in Lagos State, Nigeria. Data was collected through a systematic review of relevant literature and a structured questionnaire. The data obtained from the questionnaire was subjected to descriptive and inferential statistics. The result showed a significant positive relationship between employee engagement and financial performance of SMEs. Employee engagement positively correlated with the financial performance criteria such as profitability, financial strength, operating efficiency, performance stability, level of indebtedness, and ability of the enterprises to raise capital. SMEs can enhance employee engagement through the use of improved employee- management relations, regular training, teamwork, and increase in capacity utilisation rates, among others.
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  • Employee Engagement & Financial Performance of SMEs in Lagos State, Nigeria

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Authors

Akeem Ayofe Akinwale
Associate Professor Department of Employment Relations and Human Resourc Management, University of Lagos,, Nigeria
Paul Olusiji Ogunyomi
Senior Lecturer, Department of Employment Relations and Human Resource Management, University of Lagos, Nigeria

Abstract


This article examines employee engageme nt and f i nanci al pe rf ormance of SMEs in Lagos State, Nigeria. Data was collected through a systematic review of relevant literature and a structured questionnaire. The data obtained from the questionnaire was subjected to descriptive and inferential statistics. The result showed a significant positive relationship between employee engagement and financial performance of SMEs. Employee engagement positively correlated with the financial performance criteria such as profitability, financial strength, operating efficiency, performance stability, level of indebtedness, and ability of the enterprises to raise capital. SMEs can enhance employee engagement through the use of improved employee- management relations, regular training, teamwork, and increase in capacity utilisation rates, among others.

References