Analyzing the Drivers That Influence Employee Participation in the Contributory Pension Scheme

Abstract

The purpose of this study is to comprehensively assess the factors influencing employee participation in the Contributory Pension Scheme (CPS) within the context of Lagos State, Nigeria. By investigating the drivers that contribute to employee engagement with the CPS, the study aims to provide valuable insights into the underlying factors that influence participation. A scoping literature review was conducted to identify drivers of employee participation in the CPS from existing literature. This information was then used to formulate a questionnaire survey, which was administered to construction professionals, including employees, pension operators, and retirees from public service ministries, departments, and agencies (MDAs) who are beneficiaries of the CPS. The study analyzed the mean scores of the identified drivers and identified the top five ranked as financial advice, retirement projections, employer reputation, government policies, and communication frequency. Additionally, a factor analysis was conducted, which categorized the identified drivers into four principal clusters: external factors, pension scheme attributes, communication and education and workplace factors. The practical implications of this study can guide the development of targeted interventions and strategies to increase employee participation in the CPS not only in Lagos State but also in other states across Nigeria. By focusing on the identified drivers of employee participation, relevant stakeholders can develop tailored interventions and strategies to enhance employee engagement with the scheme, improve communication, and increase awareness of the scheme’s benefits. This study addresses a significant gap in the literature by conducting a comprehensive assessment of the factors influencing employee participation in the CPS within the specific context of Lagos State, Nigeria. While the CPS has garnered attention in research, limited studies have delved into the factors that drive employee engagement with the scheme, particularly within the Nigerian construction industry.