Analysing the impact of inflation on welfare of government employees: A case of Ministry Works and Transport employees, Windhoek

Abstract

The primary aim of this study is to analyse the impact of inflation on the welfare of government employees in the Works and Transport Ministry in Windhoek. By identifying the challenges and concerns these employees face due to inflation, the study seeks to propose potential strategies for mitigating its negative effects on their welfare. This study adopts a positivist research philosophy, seeking to objectively examine inflation's impact on government employees' welfare. This study adopted the descriptive research design. The sample size of 142 was determined using Slovin's Sampling Formula. Regression analysis in the form of ordinary least squares was performed to test the effect of inflation on government employee’s purchasing power and job satisfactions. According to the findings the strongest predictor of the perceived impact of inflation on purchasing power is inflation's negative effect on savings, followed by the challenge of meeting daily expenses. The moderate effect was the erosion of the real value of salaries and benefits shows a moderate but marginally non-significant impact. The data showed that government employees are finding it increasingly difficult to meet their daily expenses as a result of inflation (mean = 2.79). The respondents' belief that inflation undermines their ability to invest for future needs (mean = 2.59) and negatively influences their morale and productivity (mean = 3.11). Although the government is perceived to provide appropriate aid in dealing with rising costs (mean = 3.19), there is still a request for the government to implement further measures to offset the negative impacts of inflation on employee welfare (mean = 2.89). The study also emphasizes the difficulties employees face in meeting their financial goals as a result of inflation (mean = 3.11). Furthermore, the data show that inflation's impact on purchasing power reduces work satisfaction (mean = 3.14). These steps will not only promote financial stability, but also increase job happiness and productivity. Organizations in the public sector should prioritize financial planning and education initiatives in order to better equip personnel with the skills needed to manage inflation.