Precarious Employment and Employee Retention Strategies in the Nigerian Oil And Gas Sector

Abstract

In recent times, the oil and gas industry has experienced an increasing prevalence of non-standard employment arrangements such as contract-based work, outsourcing, and casualisation, which have contributed to job insecurity, inadequate welfare benefits, hazardous work environments, and work–life imbalance among employees. These conditions have raised concerns about workforce stability and organisations' ability to retain skilled personnel in a highly competitive, safety-sensitive industry. As a result, the study's main objective is to examine the effect of precarious employment on employee retention at Lubcon Limited. Specifically, the study examines the influence of contractual precarity and inadequate social protection on employee retention indicators, including salary competitiveness, promotion opportunities, occupational safety measures, and career development. A descriptive survey research design was adopted for the study. The population comprised 769 employees of Lubcon Limited across its operational locations in Ilorin, Lagos, and Abuja. Using the Krejcie and Morgan sampling formula, a sample of 263 respondents was selected through stratified random sampling to ensure adequate departmental representation. Data were collected using a structured questionnaire and analysed using descriptive statistics and regression analysis in SPSS. The study found that contractual precarity has a significant effect on salary competitiveness at Lubcon Limited (B = 0.072; β = 0.150; t = 2.450, p = 0.015). Also, poor social protection does not have a significant effect on promotion opportunities at Lubcon Limited (B = -0.013; β = -0.042; t = -0.674; p = 0.501). The study establishes that precarious employment conditions exist, but do not strongly determine key employment outcomes within the organisation. However, Lubcon Limited should gradually review its employment contract policies to reduce excessive reliance on temporary or precarious contracts.