EMPLOYEES’ WELFARE PRACTICES AND ORGANISATIONAL PERFORMANCE IN THE FINANCIAL SECTOR (A STUDY OF SELECTED MICRO FINANCE FIRMS IN ABEOKUTA, OGUN STATE)

This study examined the effect of employees’ welfare practices on organisational performance in selected microfinance firms in Abeokuta, Ogun State, Nigeria. Specifically, it investigated the influence of wages and salary, training, flexible work schedule, and overall employee welfare practices on organisational performance. The research adopted a descriptive survey design. Primary data were collected through structured questionnaires administered to employees of Astra Polaris Microfinance Bank Limited, AB Microfinance Bank Limited, and LAPO Microfinance Bank. The study was anchored on Equity Theory, Socio-Conflict Theory, Functional Theory of Labor Employee Welfare, and Motivational Theories of organisational behaviour. Findings revealed that wages and salary, training, and flexible work schedule have significant positive effects on organisational performance. Effective employee welfare practices enhance employee motivation, job satisfaction, commitment, and productivity, leading to improved organisational efficiency, reduced turnover, and sustainable growth in the microfinance sector. The study concludes that employee welfare is a critical driver of organisational performance in the financial sector. It recommends that microfinance firms institutionalize fair compensation, continuous training programmes, and flexible work arrangements to boost workforce morale and achieve long-term competitiveness.