Sustainable Labour Practices and Financial Performance of Listed Premium Board Firms in Nigeria
DOI:
https://doi.org/10.61143/umyu-jafr.3(1)2022.002Keywords:
Employee turnover, employee benefit, non-discrimination policy, employee productivity, financial PerformanceAbstract
This paper investigates the effect of sustainable labour practices on the financial performance of listed premium board firms in Nigeria between years 2012 – 2020. This is done with a view to determine how the labour practices policy adopted by Nigerian firms influences financial performance; with specifically focusing on the premium board firms. The population for the study comprises the eight premium board firms listed on the Nigerian Exchange group. Data were obtained from the audited annual reports of the firms for a period of 2012 to 2020. Panel least square (PLS) was used to analysed the collected data. The study found that Employee turnover and Employee benefit have statistically significant positive and negative effect on financial performance respectively; while non-discrimination policy is positively insignificant. When the mediating effect of Employee productivity measured was tested, it was discovered that only employee turnover has positively significant effect on financial performance of listed premium board firms. The implication of these findings is that employee turnover and employee benefit have significant influence on financial performance of firms; but in the event of considering the mediating effect of employee productivity, employee turnover has shown more influencing contribution. The study therefore concludes that labour practices that maintain an employee turnover level can have significant positive influence on financial performance due to openness to opportunity for innovative inflow of experience. The study therefore recommends that firms should adopt labour policies that uphold employee retainment that will significantly enhance productivity and financial performance of firms.
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