Analysis of Factors Influencing the Selection of Incentive Schemes in Selected Construction Firms in Lagos State, Nigeria

AINA Omotayo Olugbenga, AKINYEMI Tobi Akinlolu


The management of construction firms use incentive schemes to motivate workers to be more productive. In doing this, different incentive schemes motivate workers differently, and their selection process also impacts the schemes. Their selection process has been rarely studied. Therefore, this study investigated the methods employed by firms to select incentive schemes and the factors influencing the methods. One hundred and four project managers of randomly selected construction firms were asked to indicate the methods they employed in selecting incentive schemes and the factors that influenced their choice. Findings revealed that incentive schemes were majorly selected by construction firms through discretion, tradition, study-based selection and selection based on performance measurement. Furthermore, construction firms’ selection of incentive schemes by tradition was influenced by capacity of company to pay, culture and nature of task; selection by discretion was influenced by fluctuation in production, timing, and system of governance; selection based on performance measurement was influenced by availability of standardized work measurement technique, adequacy of work and cost benefit analysis; and the study-based selection was influenced by system of governance and strategy, cost and benefit analysis and adequacy of work. The study therefore emphasized the need for construction firms to understand and critically examine the factors that influence the selection of incentive schemes in order to achieve optimum effectiveness in their use.

Key words: Incentive Schemes, Incentive Schemes Selection Methods, Factors influencing incentive Selection Methods.

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ISSN (Paper)2224-5790 ISSN (Online)2225-0514

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