Retirement Benefits And Employee Commitment In Awka South Local Government Area, Anambra State, Nigeria

This study examined the relationship between retirement benefits and employee commitment in Awka South Local Government Area, Anambra State, Nigeria, focusing on how gratuities and pensions affect normative and affective commitment. A survey research design was employed, with 296 respondents selected through a stratified random sampling technique from a population of 1,250 employees. Multiple regression analysis was used to analyze the data. The findings show a significant positive relationship between gratuities benefits and employee normative commitment (B = 0.685, β = 0.735, t = 8.03, p = 0.000), with gratuities accounting for 54% of the variance in normative commitment (R² = 0.540). Similarly, pension benefits significantly influenced employee affective commitment (B = 0.564, β = 0.642, t = 6.61, p = 0.000), explaining 41.2% of the variance in affective commitment (R² = 0.412). Both results indicate strong and statistically significant effects, as all p-values were less than 0.05. The study concludes that secure and fair retirement benefits enhance employees’ emotional attachment and their sense of obligation to remain in the organization, thereby fostering higher levels of commitment, job satisfaction, retention, and reduced turnover. It is therefore essential for local government authorities and private sector organizations to invest in transparent and comprehensive retirement benefits systems to promote employee commitment and organizational stability. The study recommends prioritizing the enhancement and proper management of pension and gratuity schemes, ensuring they are adequate, accessible, and transparent. Policymakers should also regularly review retirement benefit policies to reflect prevailing economic conditions and support employee awareness programs that communicate the value of such benefits. Further research is encouraged to explore the long-term impact of retirement benefits on employee performance and organizational productivity across different sectors in Nigeria.