Human Capital Dimensions and Employee Job Performance in Public Financial Management: Empirical Evidence from Nigeria’s Federal Civil Service (Published)
This study examines the predictive effects of demographic, psychographic, and psychological human capital dimensions on employee job performance within finance-based federal civil service institutions in Abuja, Nigeria. Anchored on Becker’s (1962) Human Capital Theory and Münsterberg’s (1913) Theory of Industrial Efficiency, the study addresses empirical inconsistencies regarding conventional demographic drivers versus psychological resources in public sector productivity. A descriptive survey research design was adopted, drawing a stratified proportionate sample of 388 respondents from a target population of 13,269 employees across four strategic financial bodies: Federal Inland Revenue Service (FIRS), Ministry of Budget and Economic Planning (MBEP), Ministry of Finance (MF), and Office of the Accountant-General of the Federation (OAGF). Data gathered via a validated 6-point Likert questionnaire (Cronbach’s α = 0.89) were evaluated using Partial Least Squares Structural Equation Modelling (PLS-SEM) via SmartPLS 4.0. Empirical results indicate that the demographic dimension (age, education, marital status, sex) has no statistically significant impact on employee performance (β = -0.005 to -0.076, p > .05; R² = 0.011), demonstrating that superficial demographic traits do not dictate operational efficiency in standardized public service roles. Conversely, psychographic human capital (work motivation, values, commitment) exerts a positive and statistically significant direct effect on performance (β = 0.123, t = 2.252, p = .024, f² = 0.015, R² = 0.015). Crucially, psychological human capital comprising Positive Psychological Capital (PsyCap: efficacy, optimism, resilience, hope) emerged as the most potent predictor (β = 0.309, t = 6.103, p < .001, f² = 0.105, R² = 0.095). The study concludes that non-traditional mental and behavioral assets outweigh demographic characteristics in driving public sector efficiency. It recommends that public sector HR executives transition from demographic-based recruitment and deployment toward strategic PsyCap interventions, structured coaching, and behavioral alignment.
Keywords: Employee Job Performance, Nigeria, PLS-SEM, Public Financial Management, federal civil service, human capital dimensions, psychographic human capital, psychological capital (psycap)