Influence of Fringe Benefits on Employees’ Productivity at Tanganyika Planting Company Limited, Tanzania

Abstract

Increased employee productivity is a concern of every industry, and fringe benefits motivate employees to have high productivity. Although fringe benefits are offered at Tanganyika Planting Company to improve employees' productivity, little is known about their influence on their productivity. Therefore, the study assessed the influence of fringe benefits on employees' productivity at TPC using three specific objectives; to determine the effects of health protection benefits on employees' productivity, to find out the influence of retirement benefits on employees' productivity, and to evaluate effects of profit-sharing on employees' productivity. Two theories, reinforcement, and expectancy, guided the study. The study employed mixed research and sampled 330 respondents from 1900 a targeted population composed of employees from seven departments at TPC. The respondents were sampled using stratified, simple random, and purposive sampling techniques. The survey questionnaires and the interview guide were used to collect data. The quantitative data were analysed in SPSS version 24.0 using simple descriptives in frequencies and percentages. Inferential statistics were analysed in regression in SPSS version 24.0, and the results were presented in tables. The qualitative data was analysed using thematic coding. The study determined that health protection benefits, retirement benefits, and profit sharing significantly positively influenced employees' productivity at TPC, Tanzania. The study concluded that all the variables contained in health protection, retirement benefits, and profit-sharing improved employee productivity. The study recommended that TPC management, Tanzania Ministries of Health, and Labour and Employment should collaborate and improve the existing fringe benefits packages to make them more attractive and motivating to employees to realize more productivity. The study contributes to existing knowledge by establishing the influence of TPC health protection benefits, retirement benefits, and profit sharing and how they singularly contribute to employees' performance.