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THE IMPACT OF WAGES ON EMPLOYEE PRODUCTIVITY IN TAGUM

CITY: A QUANTITATIVE STUDY

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A Research Proposal to the Faculty of Senior High School Department

of St. Mary’s Collage of Tagum Inc.,

Tagum City

_________________________

In Partial Fulfilment of the Requirements for

Immersion Subject 1

(IMM)

REGINE MAE O. MARQUEZ

DELIA LALAINE FAITH P. LAZANO

KHIANNE MHAE G. TABLON

IVAN DAVE G. CALIMPONG

JONAH MAE S. SUMAYANG

RAQUEL B. WENCESLAO

MARJORIE R. LEDESMA

ERICA JOY N. ESMO-AN

JAQUILYN M. URSAGA

CHEENA S. ALMEROL

DYN B. AVILA

February 2020
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INTRODUCTION

Background of the Study

One of the purposes of being an employee of a business is to earn an income in a

form of wages. Wages they earned can fulfil their basic need in living such as food, cloth,

shelter. An employee more likely to work hard if they are happy with the wages they are

earning. The computation of wages will not only impact the necessities worth of living

but it may also impact the employee productivity.

In Global setting, as stated by Rivai (2009). Wages had a big role in employee

work life it is also for the survival of the business. Wages is a form of compensation

receives by the employee for their work or service that had been done to fulfil their

necessities of life. Furthermore, according to Nitisemito (1996) wages enormously

influence the worker by their high work motivation, job satisfaction, productivity and

also loyalty as cited by ( Umar,2014).

In Karnata, India as studied by Ivaceuch and Glueck (1989). Wages impact on

employee efficiency and increase the performance, satisfaction and productivity. If pay is

good the employee productivity is good, as well as the quality and quantity of work will

increase cited by (Nagaraju & Pooja, 2007). Additionally, Fisman and Luca (2018) in

their study revealed that the impact of wages can have on business also the way in which

higher wages can motivate the employee and spur their productivity. They also mention

that the business can also benefit from increasing its minimum wages even if it does end

up paying its employee above the market rate.

An article that was published by Lomotan (2019), mentioned that there are

different group proposed a rise of minimum salary of the private companies in Central
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Visayas at the wage public hearing held in Dumaguete , but the regional governor of

central Visayas Ed Du repeated the objection to the proposal , indicating that there is no

assurance of a proportional increase in productivity of worker if the minimum wage will

raise, so they should think more on how to improve the skills of the employee rather

than increasing the salary. Also the Vice Chairman of management and construction

industry Absilita Teves called the full-scale force of the Tulong-Trabaho Act and TESDA

should lengthen there training and certifying Filipino Employee. She also added that

there is no problem in increasing the minimum wage if the workers are productive and

competitive.

In our local setting, The latest estimate by the Philippine statistics Authority,

Davaoeno families with the average Filipino family size needed a regular source of

income to meet their daily need, thus a sole wage earner that live in Davao region had to

work hard to get the desired high wages and to get their family out of poverty (Amoyen,

2020).

Moreover, an article published by Colina (2018) in Davao City in order to help

minimum wages employee cope with the living cost the introduced the daily wages

increase. However, A review article in Tagum posted anonymously by employee stated

that wages is not the issue it is the knowledge they gain and skill on sales, expanding

their ability and communication skills if they work hard but the hardest part of the work

is having an overtime without the overtime salary.

Based on our reading, there is a research relating to Wages and Employees

Productivity, such as the study of Gunawan & Amalia (2015), entitled “Wages and

Employees Performance: The Quality of Work Life as Moderator”. However there is no

research about the descriptive study on the Impact of Wages on Employee Productivity,

also they are focusing the Wages on employees Performance are Moderated by the
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Quality of Work life and we are focusing on the Impact of Wages on Employee

Productivity especially in Tagum City. This paper will use the available resources in

developing this study that aims at filling the said gap and then generate with new

information about the study.

Aim

The aim of this study is to have a descriptive survey on the impact of wages on

employee productivity to evaluate on how the wages impacted the employee

performance. The researcher wants to measure how wages increased or decreased

employee productivity. To validate the methodology of the evaluation of the impact of

wages on employees productivity in Tagum City.

Statement of the Problem

This study intends to determine the impact of wages on employee productivity in

Tagum City.

Specially, the researcher soughs to answer the following questions:

1. Do wages impact the employee productivity?

2. Do all the wages impact the employee productivity?

3. Is there a significant difference on the impact of wages on employee productivity

when analyzed according to sex?

4. What is the impact of wages on employee productivity when analysed according

to sex?
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METHODOLOGY

Research Respondent

The respondents of this study are the employees in Tagum City who are

working in a small business during this year 2020-2021. They are the one to

answer the questionnaires that the researcher has been created. A stratified

random sampling will be used to determine the respondents with the use of

Raosoft software. Table 1 shows the distribution of respondents. Tagum City

employees have a total of 140 employees, of which 69 are males and 71 are

females. Personal Collection Direct Selling Inc. has a total of 54 employees, of

which 26 are males and 28 are females. Siblings Solutions has a total of 40

employees, of which 18 are males and 22 are females. Jrs Express has a total of

46 employees, of which 25 are males and 21 are females. The sample sizes that we

needed are in total of 127 employees of which 63 are males and 64 are females.

The succeeding page shows the map of where the study will be conducted.

Table 1

Distribution of Respondents

Population

Business (small business employees) Sample

Male Female Total Male Female Total

Personal 26 28 54 23 25 48
Collection
Direct
Selling
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Inc

Siblings 18 22 40 17 20 37
Solution

Jrs 25 21 46 23 19 42
Express

Total 140 127

Research Locale

The study will be conducted in Tagum City. The respondents are the

employees of 3 different small businesses in Tagum City, in which 1 business

located at Manajeros Road Gante III, 1 business located at Arellano Street, and

the other 1 business located at Bonifacio corner Quezon Street Tagum City, Davao

Del Norte, Philippines.

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Figure 2. Map of small business in Tagum City

(Source: Google map)

Research Instrument

The research instrument that will be used in gathering the data will be the likert

scale questionnaire for measure employee to focus on the relevant indicators to check the

result of the impact of wages and employee productivity in small business of Tagum City.
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The questionnaire contains the level of discovering in the impact of wages to the

employees productivity. In answering the questionnaire, the respondents will be given

the options of 3 yes, which means the employees strongly agree with the item; 2 maybe

yes/no, which means the employees has a neutral response to the item; 1 no, which

means the employees is strongly disagree to the item. The respondents made use of

Likert Scale as reference in answering the questions.

Below is the scale that was used in evaluating the results of the survey on the

impact of wages and employees productivity. To calculate all score, the researcher will

take the average of all of the responses.

Parameter Descriptive Descriptions

Equivalent
Limit

3.60 – 5.00 Y es This means that the employees strongly agree

with the item of the impact of wages on employee

productivity.

2.10 – 3.59 Maybe no/yes This means that the employees have a neutral

response to the item of the impact of wages on

employee productivity.

1.00 – 2.09 No This means that the employees strongly disagree

with the item of the impact of wages on employee

productivity.
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Data Gathering Procedure

In order to gather the data, the researcher will employ the following

procedures:

Seeking Permission to Conduct the Study. The researcher will request a

permission from the school president and administrators of the concerned school

through a via formal email letter of request. After the permission will be granted, the

researchers will request permission from the person who are involve to the said study

with formal communication to perform the study. After the permission will be granted,

the test questionnaire will be personally

Administration and Retrieval of the Questionnaires. The standardized

questionnaire that will be used by the researchers will be distributed on the date

scheduled. The researchers will use the stratified sampling in getting the number of

respondents. The participants filled in their gender and age in answering the test

questionnaires. Before it will be gave to the respondents, the instruction will be

discussed by the researchers to have a good outcome.

Checking, Collating and Processing of Data. After the test questionnaires

will be distributed and answered by the respondents, they will be collected, checked and

analyzed using the appropriate statistical tools to come up with the result that will be

used to describe with the impact of wages on employee productivity in Tagum City. The

data processing will be collated, analyzed and interpreted then the findings and the

conclusions will be formulated.

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Statistical Treatment of Data

To reach the point of the study, the data will be tallied, recorded, analyze,

and interpreted. The researchers will use the following statistical tools:

Mean. It is commonly known as arithmetic mean, a value that helps to

summarize the set of numbers. This will determine the impact of wages on

employee productivity. This will help us answer the problem 1 and 2.

T-Test. A statistical tool to be used in assessing whether the means of two

groups are statistically different from each other. This will be used to test the

significant difference on the impact of wages on employee productivity when

analyze in terms of sex. This will be used to answer problem 3.

Frequency Distribution. It is a data set that organized to show the

frequency of occurrence of each possible outcome of an event that observe. This

will be used to occur the impact of wages on employee productivity when analyse

in terms of sex. This will be used to answer the problem 4.

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References

Amoyen, P. (2020). 2018 Poverty Estimates of Davao Region.

http://rsso11.psa.gov.ph/article/2018-poverty-estimates-davao-region

Colina (2018). P30 wage hike in Davao Region to start Aug. 16. Retrieved from

https://www.mindanews.com/top-stories/2018/08/p30-wage-hike-in-davao-

region-to-start-aug-16/

Fisman, R. & Luca M. (2018). How amazon’s higher wages could increase productivity.

https://hbr.org/2018/10/how-amazons-higher-wages-could-increase-

productivity

Gunawan,H. & Amali, R. (2015). Wages and Employee Performance:The Quality of

Worklife as Moderator.

https://www.researchgate.net/publication/282233388_Wages_and_Employees

_Performance_The_Quality_of_Work_Life_as_Moderator

Lomotan, R.A. (2019). Wage public hearing tackles employee productivity.

https://pia.gov.ph/news/articles/1027639?fbclid=IwAR3Vfqf548Am_SwZJBiFL

xatZP0lhN6iCE9pfZHMJSVDkkkvJdAi9ObyVpw

Nagaraju, B. & Pooja, J. (2017). Impact of salary on employee performance emperical

evidence from public and private and sectorsof karnataka.

https://www.iaeme.com/MasterAdmin/uploadfolder/IJMHRM_08_04_005/IJ

MHRM_08_04_005.pdf

Umar, A. (2014). Effect of wages, work motivation and job satisfaction on worker's

performance in manufacturing industry in Makassar City.

https://core.ac.uk/download/pdf/234625281.pdf
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Weerasinghe, Y . (2013). Likert Scale Questionnaire for measure Employee

Performance.https://www.scribd.com/doc/178929388/Likert-Scale-

Questionnaire-for-measure-Employee-Performance-kjkof-the-Crest-Fashions-

Pvt-Warana-docx