thesis on non financial incentives

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The Impact of Incentives on Job Performance, Business Cycle, and Population Health in Emerging Economies

1 Department of Business Administration, International College, Rajamangala University of Technology Krungthep, Bangkok, Thailand

Yaoping Liu

2 Department of Global Buddhism, Institute of Science Innovation and Culture, Rajamangala University of Technology Krungthep, Bangkok, Thailand

Associated Data

The original contributions presented in the study are included in the article/supplementary material, further inquiries can be directed to the corresponding author.

In the past, different researchers have conducted studies on incentives and how they are linked to employee motivation, influencing emerging economies. This study addresses two gaps as outlined in previous studies. One research gap exists in examining employee loyalty and employee engagement in relation to the business cycle. The other gap is observed in the recommendation that future researchers use different moderators between incentives, the health of employees, and job performance with population health. This focus was explored in the present study by identifying the responses of hospitals and physicians to the business cycle to examine the impact of incentives on job performance and health of workers in public and private sector hospitals in Shandong, Eastern China. Data were collected in the form of questionnaires that consisted of close-ended questions. These questionnaires were then filled out by 171 doctors and 149 nurses working in both public and private sectors in Shandong, Eastern China. The results showed that there is a relation between different variables. Some variables have more impact on other variables such as transformational leadership, which has a significant impact on the job performance and business cycle, whereas monetary incentives also impact job performance and population health, but this impact was lower than that of transformational leadership in terms of how job performance influences emerging economies.

Introduction

The population of China is continuously increasing day by day. In 2019 it was 1.4 billion and is growing at a rate of 0.43% ( 1 ). With this population growth, there is a need to focus on the health facilities that are being provided to people and the employees and workers of the health sector. Public sector hospitals are trying their best to provide the best facilities to citizens and their employees but they are lacking in resources compared to the private sector, particularly in terms of technology and staff ( 2 – 4 ).

Through this comparison of both public and private sector hospitals, we can also see the reasons why researchers believe that the public sector has low productivity. These include unfriendly and unprofessional care and an absence of performance based incentives ( 5 , 6 ). This might be linked to how hospital staff feel about their own health and organization. The present study explores employees' general health and the loyalty of employees regarding the hospital sector ( 7 ). This will help the government sector to adopt some techniques that are being used in the private sector and create a working environment that is more conducive to the health of employees, enabling them to be more productive.

Organizations are trying to adapt according to the changes in the environment such as those caused by the Covid-19 pandemic ( 8 ). For that purpose, they are focusing on a resource-based view. They are trying to get a competitive advantage by creating human capital that is valuable, rare, and difficult to replace. In doing so, they are making sure that the employees' needs, i.e. health, a healthy environment, and incentives are being fulfilled ( 9 ). Organizations believe that fulfilling these needs will lead to employee loyalty and later on affect their general health and job performance. Leaders also play a role in creating an environment that promotes the good health of employees and loyalty of employees leading toward job performance ( 10 , 11 ). Therefore, this study focuses on exploring whether incentives are the reason for the increase or decrease in an employee's general health and loyalty. It also tries to evaluate the impact that incentives have on job performance and the health of workers. This study also explored the role of leaders in creating employee loyalty and in job performance ( 1 , 12 ). This study also explores the impact that leaders have on incentives, and how personal care can affect job performance.

Employees are assets of an organization and influence sustainability in organizations. Organizations use various strategies to retain employees and for that purpose, they have different policies in the organization that recognize the efforts of those employees ( 13 , 14 ). They provide them with rewards or incentives so they may live a healthy life that enables them to contribure to the organization in positive ways. These incentives are there in order to make employees motivated and increase productivity. The rewards system is one beneficial policy for employees, encouraging them to improve and maintain their general health and job performance ( 15 ).

Different researchers have examined motivational incentive and reward systems for employees. Some researchers believe that these incentives are the reason employees feel energetic and motivated toward their work. However, some researchers have also focused on the effect that a positive environment has on employees. If organizations provide them with this environment, then employees help them in achieving their goals. When an organization is developing, they try to motivate employees by training or providing them with different facilities including healthcare ( 14 , 16 – 19 ). Thus they utilize the skills of employees in different ways. A number of past studies have focused either on the incentive perspective or the environment and how these are linked to determining job performance. Environmental factors are important when it comes to job satisfaction as most employees are satisfied if they have more developmental opportunities rather than extrinsic rewards ( 20 – 22 ). If they get the best out of the prevailing conditions, for example staying healthy during Covid-19, they will certainly do their best ( 3 , 4 , 23 ).

In the changing environment, organizations are trying to adapt. They need to understand the importance of both working environments and extrinsic rewards ( 24 , 25 ). If one of them is missing, then employees will not be satisfied with their work and that dissatisfaction will lead to bad health and an increase in turnover. Therefore, this research focuses on both perspectives side-by-side, exploring incentives and the environment in relation to leadership as these determine general health, employee loyalty, and the job performance of employees within an organization ( 12 , 21 , 26 ).

This research was conducted in public and private hospitals in Shandong Province, Eastern China. This research will help in determining employees' perspectives regarding incentives and leadership and how they affect their health and loyalty toward the hospital as well as their performance. This research will help different HR managers working in the hospital sector and in other sectors to understand that it is important to focus on both these perspectives and what things are needed to focus more on job performance, better health, and how these are linked to organizational failure or success ( 27 – 29 ). This research furthers understanding of employee perception and weightage and how they influence incentives and leadership in the workplace.

This research is based on knowledge gaps identified in two previously published articles. The first article examined “The effects of organizational culture and leadership style on employee engagement and what their impact on employee loyalty is.” In that article, the researcher recommended that future researchers further explore different perspectives of employee loyalty and employee engagement, whether it is in an organizational or an individual context. They also outline that different factors need to be encouraged that lead to employee engagement, such as the leadership styles, as employee engagement has a positive correlation with employee loyalty. They also mentioned that future researchers can use different moderating variables in research. The second article was on “Employee participation, performance metrics, and job performance: A survey study based on self-determination theory” ( 30 – 32 ) published in 2017. This article recommended that future researchers concentrate on the different moderators that may explain the different relationships between incentives, general health, and performance ( 29 , 33 – 35 ). They also recommend that future researchers provide an overview of different tasks or their environment as moderators.

Literature Review

Concepts and definitions.

Incentives are defined as concrete incentives or any kind of compensation that is given to an employee in the form of cash. Incentives can also be defined as the objective criteria where an individual simply wants to establish quantifiable standards for performance. Some researchers have divided incentives into two types, namely concrete and moral incentives. Moral incentives refer to indirect compensation through certification, for example appraising someone ( 36 ). Concrete incentives refer to a direct way of compensating one's effort by giving a bonus. In this research, we will be talking about the concrete incentives that are being given to workers. According to the American Compensation Association, compensation is defined as the cash and non-cash remuneration provided by an employer in exchange for the services that are provided by the employee ( 37 ). This research discusses concrete or cash remuneration.

A compensation package is when an incentive is used as a strategic tool to compensate an employee for their performance and retain them by achieving employee satisfaction and improving their health for achieving the best job performance at the same time. Some researchers believe that incentives are used by employers to trigger and influence the motivation of employees ( 38 ). When they motivate employees, it leads to improvements in general health, skill and they will also be satisfied with their work. Most organizations perceive incentives as a way of achieving their goals ( 30 , 36 , 39 ). Some researchers have outlined that compensation was an important factor in providing health allowances, job satisfaction, and employee empowerment are also considered to be important factors in cases of employee loyalty ( 28 , 30 , 39 – 41 ).

Some previous research found that the alignment of the reward system must follow the organization's design, otherwise, they send mixed messages ( 42 ). Let us take an example of an automobile company, which designs distinct working activities as project assignments for the workforce in departments. The main objectives are that employee pay must be analyzed by the respective managers of departments and decided with a finance manager. Consequently, workers will be satisfied and motivated to meet their functional goals. Although, all the departments must communicate and work cross-functionally. Everyone is responsible and accountable for the responsibilities for which they were hired. The direct supervisor is linked with the incentives that are being provided to the employees rather than a person who has no knowledge of the work performed by the employee. In this way, the employee is motivated and puts effort into working efficiently to gain rewards ( 43 ). Therefore, choosing a leader who will measure the performance of the employees is also important.

The reward in satisfying the needs of employees, for example, the healthcare of their family, as stated by Victor H. Vroom under the theory of expectancy ( 44 ). Incentives were considered as a form of payment that is directly linked to the performance of employees. The more profits or incentives the better the performance of employees. This system of providing monetary incentives to employees is another way of compensating them other than their salaries. This system of compensating employees is based on performance ( 35 , 37 , 45 , 46 ). Different research also shows that employees nowadays are much more motivated by extrinsic rewards. If they have a greater sense of entitlement, then they want to work hard to achieve goals. Employees are not motivated by intrinsic rewards and are more sensitive about monetary compensation for the work that they do ( 39 , 40 , 44 , 47 ).

Employee Loyalty

Employee loyalty is defined as the commitment or psychological attachment of employees toward the organization. Employee loyalty is also defined as the capability of the employee to stay in an organization. It might also depend on how much time they have spent in an organization and what type of work they do in an organization ( 46 , 48 , 49 ).

In the past, employee loyalty was defined as the time an employee remains in an organization but due to the environmental changes during the pandemic, its definition was updated to the time an employee remains committed toward the organization and is said to be loyal. Previously, employee loyalty consisted of two major divisions: firstly, loyalty is in the employer's best interest; and secondly, loyalty is when an employee remains with the same employer ( 50 ). Employee loyalty has evolved. Traditionally, it was known as a trust and bond relationship between employee and employer, which means the longer the time an employee spends on their job the more loyal they will be but in recent times leaders do not equate longevity with loyalty, rather they define loyalty as the commitment and dedication that an employee gives it to their organization ( 51 , 52 ). Employee loyalty is considered to be linked with the survival and success of any organization and if the employers recognize the importance of an individual, then it means that they will try to ensure that the employee remains loyal to that organization ( 53 – 55 ).

Some researchers believe that employee loyalty leads to job satisfaction. If the employee's expectations are met, then their level of satisfaction also increases. This loyalty will develop into a generalized emotional attitude toward that organization for which the employee is working ( 56 – 59 ). The more satisfied they are the more healthy their life, and the more loyal they will be toward that organization. When employees develop affection toward their organization, they show loyal behavior by improving productivity and that helps them in achieving organizational goals i.e. they provide a better quality of services to employees whereas, some researchers have mentioned that employee loyalty is generated due to the presence of job satisfaction ( 57 , 58 , 60 , 61 ). Job satisfaction and the general health of employees are important variables when it comes to employee loyalty. The positive or negative feelings of employees might later determine employee loyalty and eventually affect their performance. When employees have satisfaction they become committed to that organization ( 8 , 23 – 25 , 62 ) and will remain loyal. A study showed that if the banking sector continued to provide proper compensation, training, and appraisals then the employees will remain committed to the organization and the chances of turnover will also be less. In the past, different studies have found out that different employee loyalty behaviors were linked with how much employees were satisfied with their job, which lead to a commitment to the job ( 63 ). Job security was also one of the reasons employee loyalty is generated in some individuals ( 64 ).

Past research has outlined that employee loyalty has nothing to do with the human resource management policies and practices, environmental conditions such as a healthy atmosphere. How much an employee is satisfied with their job will later determine the employee loyalty that they develop ( 65 – 67 ). Employee satisfaction is quite important when an employee is from services or sales departments as if these employees are not satisfied with their job then customers are not satisfied with the services they are providing, which will affect the company's goals and impact loyalty toward the organization ( 64 ). In this case, employee satisfaction leads to them being loyal toward the organization. If they are not healthy and satisfied with their work not only do they fail to develop employee loyalty, it will harm the organization's performance as well ( 68 , 69 ). Thus, job satisfaction influences employee loyalty, and later on impacts organizational commitment as well.

Leadership can be defined by the behaviors employees possess and how they process their decision-making. A leader is one or more people who either select, train, or influence their employees. They have a diverse set of abilities, skills, and knowledge that helps them to align employee goals with organizational goals. A leader is a person who influences the behaviors of employees or their followers ( 70 , 71 ). A leader is also defined as a person who has the ability to understand and work within a culture, which makes a leader effective. Leadership style is defined by the psychological latitude and the behavior they possess during interaction with employees or while they are handling their operations or activities ( 72 , 73 ). In this research, we examine transformational leaders in order to explain the leadership style used in organizations. Transformational leaders are defined as those who motivate their followers to achieve goals through inspirational motivation, intellectual stimulation, idealized influence, and individual consideration ( 70 , 71 , 74 ). They help the followers perform better than expected. They possess good visioning and use their skills to develop a strong bond with followers. Transformational leadership is used to describe the situation where leaders and followers help each other reach higher levels of morality and motivation ( 75 – 79 ).

Past research has focused on the leadership personality traits that made people successful leaders but some researchers believe that leaders have some innate qualities that distinguish them from other people. Research has started to focus on the different behavioral aspects of leader's personality and the different contingency theories that support situational leadership outline that leader effectiveness depends upon situational factors ( 75 ). Other researchers have defined leaders based on two types, including effective leaders and transformational leaders. Transformational leadership is when leaders motivate their employees to increase or strengthen their perceptions, behaviors, commitment, motivation, and beliefs to stay aligned with organizational goals. Whereas, an effective leader is someone who influences followers in such a way that leads to an organizational vision that sets an example by performing a job in such a way that inspires the followers. In other words, an effective leader is someone who leads through their actions ( 11 , 20 , 80 ).

Different leadership styles are seen to be highly supportive and engage employees in their decision making. This engagement in different activities of work makes employees happy that their decision and participation are valued in the organization, which makes them more loyal ( 81 ). Different research has shown that employee engagement leads to organizational success ( 7 ). Therefore, leader communication strategies have a significant impact on employee general health and their loyalty or commitment ultimately affects job performance in an organization ( 82 ). Today, worker loyalty is one of the utmost factors in the success of an organization. For this reason, key leader communication strategies are taken into account in the present study to determine how a worker's motivation loyalty can be increased through different leadership communication strategies, which results in an increase in job and organizational performance ( 13 ).

Job Performance

Job performance is defined as a certain behavior that organizations expect an individual to carry out. Different researchers have defined job performance as a multidimensional concept that includes both task performance as well as contextual performance ( 81 ). Task performance is defined as an employee's contribution toward the organization i.e., their technical competencies and job proficiency, whereas contextual performance is not linked with the formal job requirements of an employee ( 32 ). This article focuses on the task performance of the employee. Here, performance includes the outcomes of a particular job that an employee is performing at their workplace. Thus, it is more linked with the task performance of an employee. It is also linked with the employees' behavior toward their work.

Performance is composed of many other different concepts but on a basic level. It can be described as behavioral engagement with an expected outcome, where behavior shows the action people perform to complete the work, outcomes exhibit the results of individual job behavior. Performance is considered a multi-dimensional concept. Job performance has received research attention in the last few decades ( 41 ). Effectiveness of job tasks involves evaluating the results of employee performance (i.e., financial value of sales). In comparison, productivity is defined as the ratio of effectiveness to the cost of attaining the outcome. For example, the ratio of hours of work that an employee is investing as input and the product they assemble as output both describe the productivity of an employee. Therefore, performance must be evaluated separately from efficiency and effectiveness in productivity ( 29 ).

Leadership as a Moderator Between Employee General Health, Loyalty, and Performance

Different leadership styles and strategies are used by organizations to improve employee loyalty and the overall performance of the organization. Different past studies have examined the impact of leadership and these impacts vary according to their styles and the effect the employee has on commitment or loyalty, which significantly affect job performance ( 40 ). Different researchers have also explored how leadership style has an impact on organizational culture and organizational performance. Different studies have shown that in the past, leaders inspire followers to accomplish certain organizational goals but in recent years it has been observed that leaders have failed to motivate employees as employees are much more focused on the concept of working to live and are thus more focused on rewards ( 45 ). This is due to the fact that employees are so involved in their work that they forget to take care of their health. The researcher has also talked about different research that has claimed that employees growing value is much more on extrinsic rewards and they are not motivated by the charisma of any kind of leader as they want to seek outcome. About 70 % of employees thought that they would get promoted within 2 years in a firm ( 83 ). This also shows that employees have high expectations from the firm where they work. Other researchers have found that servant leadership style has a positive relationship between employee loyalty and servant leadership style. Different leadership styles might have a different relationship with job performance depending upon the situation or the context that employees and supervisors are in. This also shows that without a leadership style the link between employee loyalty and job performance can decrease ( 37 , 38 ). Leaders can create an environment for them to be motivated toward the achievement of goals. If leaders do not guide employees, they might be de-motivated and think that they are not getting incentives, but a leader tries to make sure that employees understand their work and that their contribution will pay off in the form of incentives.

Incentives and Employee Loyalty

Different researchers have examined the loyalty of employees. Some of them have used hotel managers and supervisors to check loyalty. They found out that loyalty was associated with intangible aspects. This intangible aspect can be the working environment of the organization and this environment was linked with their peers, supervisors as well as customers. They were satisfied with their jobs because they had opportunities for personal healthcare, development, and to use strengths that helped them in achieving their work objectives ( 31 ). They also said that employee turnover was related to there being no opportunities for development. This study focused on how employee loyalty was linked to environmental factors that were creating motivation among employees, leading to them achieving their goals. In the past, it was believed that performance and employee loyalty was linked with promotions. But later on, the focus shifted toward the relationship between the employee and employer and became much more focused on flexible environments to get better performance from employees, as they felt more energetic and healthy when working. Employee loyalty reduces the turnover intentions among employees. The hospital industry has suffered an increasing rise in employee turnover, with the main reason being poor wages ( 45 ). Another study showed that employee loyalty was used as a mediator between commitment and employee retention and the results of that study showed that it had a significant effect on both commitment and employee retention. The study mentioned that compensation and different social benefits have a greater impact on employee commitment rather than on retention ( 37 ). One of the most important factors should be taking care of the health of employees in changing environments such as during the Covid-19 pandemic. Most of the time, organizations focus on giving financial rewards to their employees but they sometimes forget that non-financial rewards are also important to keep employees motivated toward work. Therefore, both incentives are important when trying to motivate employees and we need leaders to create an environment for the employees that enables them to feel motivated toward work ( 84 ).

Some researchers have tried to explain incentives and employee loyalty from a different perspective. They have talked about how employment and unemployment rates can change an organization's point of view ( 85 ). One study mentioned that when there is a higher rate of unemployed in the country then the chances of the potential job loss become more, at that time the employer gives employees incentives to gain loyalty. Organizations try to avoid layoffs and at that time they need more loyal employees and for that purpose, they provide stronger incentives. This shows that incentives depend on the leader or the organizations and much they are encouraging employees to perform better. This can also depend on the availability of human capital and when human capital is not easily available in the market, meaning the employer tries to gain employee loyalty by giving out benefits to retain talent in the organization ( 76 ).

Employee Loyalty and Job Performance

Employees' work attitudes can predict their outcomes. The main dimensions linked to employee loyalty are incentives, healthcare facilities, salaries, promotions, and different individual characteristics such as the age of the employee, job tenure, and position. Different studies have focused on perceived organizational support, customer participation and perceived that supervisory support can lead to an increase in job satisfaction and later on, also improve the service quality of employees ( 34 ). Employee loyalty is determined through leadership, human relations, personal development, better health, creativity, and job satisfaction. The better these determinants are handled the more employee loyalty indirectly affects job performance in other ways, as there is a positive relationship between employee loyalty and job performance ( 38 ).

Employees Incentives and Job Performance

It is suggested in literature on human resource management and organizational behavior that nonmonetary incentives act as a tool for motivating employees. When organizations pay attention to different monetary tools i.e., paid leave, giving bonuses for having an eye on their health and their family healthcare or other family, then employees start to perceive that the organization is supporting them. Therefore, monetary incentives increase the motivation of employees leading to increased job performance ( 78 ). Non-monetary tools can be appraised by the leader or environment that leaders provide to their employees. These non-monetary tools keep employees motivated for a certain time but if organizations do not give proper incentives to employees then it will affect their work. Different studies also show that incentives play a part in the job performance of employees. A study investigated the link between incentive packages and employees' attitudes concluded that several different types of incentives (monetary, tangible, and non-tangible non-monetary) play important roles in enhancing employees' attitudes toward their work. Different studies have found that there was a linear correlation between employee loyalty and job performance ( 72 ).

Another researcher discusses how job satisfaction impacts employee loyalty ( 76 – 78 ). They state that different underlying factors affect job satisfaction, including healthy working environment, healthy activities, chances of career growth, and motivation, all of which lead to employees being loyal. Some researchers believe that job analysis, compensation, and career planning help to determine employee loyalty. These factors motivate employees in the workplace and further lead to an increase in job performance. However, an absence of employee loyalty can create different issues like an increase in turnover rate among employees ( 71 ). Organizations might not be concerned about losing bad performers but if they lose good performers then that is a major concern for the organization. Therefore, the organizations are more focused on retaining human talent in the organization by giving out different facilities to employees and their families. Later on, the benefits incurred by employee loyalty will be more from the cost that was invested in them. Various studies have also shown that employee loyalty is linked to customer services and developing customer loyalty to ensure long term profitability for the organization ( 73 ).

Expectancy theory by Victor H. Vroom suggests that people put effort into work when they start to perceive that it will lead to an increase in their performance, which will eventually increase the chances of them receiving rewards. Consequently, an increase in these financial incentives also enhances employee loyalty, which increases the employee's performance and reduces the turnover rate ( 86 ). Employees can only be loyal when their desires are being satisfied by organizations. The organization also pays attention to these things, as they also believe humans are an asset and that they need to fulfill their needs to utilize their skills. In the hierarchy of needs (1954), Maslow concluded that humans have five basic wants (physiological, safety needs, love, and belonging, self-esteem, and self-actualization), which can be satisfied through financial incentives and rewards. Employees with a sense of recognition from their employers fall under the heading of self-esteem and, as their needs are being fulfilled, they will experience increased job satisfaction as well ( 87 – 89 ).

Theoretical Reflection

Two micro theories support the conceptual framework of our study. These motivational theories explain why incentives influence employee loyalty, leading toward employee performance. The first motivational theory is “Maslow's hierarchy of need,” which classifies human needs into two types. First, lower order needs, which are physiological and connected to safety and security, and second, higher order needs, which include socialization, self-esteem, and self-actualization. In this theory, incentives and this type of recognition are given to employees, and are related to the self-esteem of employees. These create motivation among them to work hard within the organization. The second motivational theory is by Herzberg, who explains two types of factors i.e., motivational factors and hygiene factors ( 90 ). Employees would like to grow in an organization and if there are chances for growth, advancements, and recognition they feel motivated to work but hygiene factors like working environment, quality of interpersonal relation, and salary are also important along with the motivational factor ( 91 ). Without any one of them, an employee will start to feel dissatisfied with their job, which will impact their behavior toward work and can also lead to high turnover among employees ( 92 ).

Another important theory that is highly relevant to our study is “Vroom expectancy theory.” This theory suggests that behavior will develop certain attitudes among employees, which will lead to further actions. This theory outlines that job performance is based on certain things i.e., skill, personality, experience, abilities, and knowledge regarding that particular field ( 93 ). The effort an employee puts into work; performance and motivation are all linked to employee motivation. This model uses three variables, including expectancy, valence, and instrumentality. Expectancy is defined as the belief about how much effort an employee puts into their work that will lead toward increased performance ( 90 ). Valance is defined as the importance an employee gives or places on the expected outcome. Instrumentality is defined as an employee's belief that if they do well in an organization, a valued outcome will be received. In this study, an organization motivates employees to work well and when they do so they receive incentives for the work they have done. Employees feel motivated by these rewards, which creates employee loyalty among them as they think organizations care about their contribution and their needs at the same time. If organizations do not provide incentives to employees who have performed well in the organization, they will feel demotivated and their performance will also decrease, and they will not trust the organization's rules and procedures, potentially decreasing employee loyalty as well ( 94 ). Organizations try to motivate their employees by either providing them with a good healthy working environment and in this case, with a leader who will make sure that the working environment motivates an employee to increase loyalty and job performance. Therefore, there is a continuous cycle connecting staying healthy, job performance, incentives, and rewards to future job performance. The incentives or rewards determine whether the employees are motivated enough or, if they are not motivated by the rewards given or think that the incentives given to them do not reflect what they have contributed to the organization, then their performance will decrease in the future ( 95 ). Based on the discussed literature, we formulated a conceptual framework, shown in Figure 1 .

Conceptual framework.

Conceptual Framework

H1: Incentives have a positive effect on employee loyalty.

H2 : Employee loyalty has a positive effect on job performance.

H3: Leadership can have a positive moderating effect on employee loyalty leading toward job performance.

H4: Leadership has a moderating effect on incentives and job performance.

H5 : Incentives have a positive effect on job performance.

Research Methodology

This research focuses on a quantitative methodology. Quantitative methods are focused on a systematic way of collecting data either through questionnaires or surveys. Quantitative research explains the phenomenon according to numerical data. It is also defined as the empirical research that explains a social phenomenon by testing a theory consisting of different variables. Researchers want to explain the perception of employees regarding incentives, healthcare, employee loyalty, leadership, and job performance in the language of statistics and mathematics. In this research, the researchers have only focused on the hospital staff's point of view regarding this matter and have collected data from them for this research. This research was a quantitative, descriptive, and cross-sectional study. The overall methodology of this study is positivism, as it describes the study through different statistics that are gathered by collecting data.

Research Design

The research design provides an outline for research. It also provides a guideline for the researchers who are performing that research ( 96 ). While this research focuses on how incentives can lead to employee loyalty and further contribute to job performance, this research also focuses on the impact leaders have on employee loyalty and job performance. Thus, it tries to describe the relationship between different variables, how they impact each other, and which variable has the most impact on the other variables. Therefore, this research used quantitative methods of collecting data by giving out questionnaires to the hospital staff. Quantitative research was used for this research to make the data more representative and to generalize the information collected and examine the hypotheses proposed in the literature section. These empirical results could also help future studies of other developing countries with similar work conditions. Figure 2 shows the Levene's test of equality of error variances.

Normality plot of JPM.

Research Approach

This research used a deductive research approach, which converts specific things into general applications. In the deductive approach, the researcher first finds a theory related to the conceptual framework and then analyzes that data ( 10 ). This will help in interpreting the data but also in explaining data presented in the form of graphs and numbers. This deductive approach will help us explain the results through different theories. It will also help in accepting and rejecting the hypotheses and explain why people thought different variables were affecting each other.

Data Collection

The data for this research were collected from primary and secondary sources. Primary data was collected by giving out questionnaires to hospital staff e.g. doctors and nurses. The questionnaires consisted of close-ended questions. In total, 320 questionnaires were collected from respondents and later analyzed. The reason for using a quantitative method to collect data was to make sure that we gathered enough information from the sample, could easily compile data regarding employee perceptions, and easily analyze the data gathered. Where the secondary data was gathered through several sources i.e., articles, and books, the secondary data were used to formulate the literature review and support the description of findings.

Population and Sampling

A population is defined as a group of individuals that have certain skills, knowledge, or experiences required for research. The population chosen for the present research included staff members working in both public and private sector Hospitals in Shandong, eastern China. The term population is also defined as a wide range of people. Every study is based on a certain population e.g., hospital sector, banking sector, or schools, but collecting data from such a huge number of people is impossible. For that reason, researchers divide this population into a sample to easily collect the required data. Certain techniques are used by researchers to select samples.

The sampling technique used for the collection of data was cluster random sampling. Clustering is a useful method of collecting data and discovering different groups of respondents that represent the population. The sample might be taken from a particular city or a particular sector. These clusters help in dividing the greater population into smaller sections. The later helps in separating people with similar patterns. Clustering does not indicate the desired relations that would be valid among the data beforehand and for this reason, it is thought to be an unsupervised process ( 24 ).

The sample taken for this study is forms of hospital staff i.e. doctors and nurses from both public and private sector hospitals of Shandong, Eastern China.

Data were collected via questionnaire to see what impact incentives have on their job performance or their employee loyalty and what type of leadership was being provided to them. The questionnaire was based on the Likert type scale.

Data Analysis Techniques

For the analysis, data were first screened to see if there were any missing values. Data collected through questionnaires were coded and then analyzed using SPSS. The data gathered from participants were gathered through Likert type scale questions and was dissolved into high and low groupings and positioned on scales 1 = strongly agree and 5 = strongly disagree. The respondents that rated 1–3 were considered high, whereas ratings from 4 to 5 were considered low. The data were analyzed in SPSS by applying different tests such as correlation, descriptive analysis, normality tests, and ANOVA to analyze the gathered data. Furthermore, confirmatory factor analysis (CFA) was also performed to analyze different variables.

Data Analysis

Descriptive analysis.

Descriptive analysis justifies the salient features of the study and provides a comprehensive summary of the data used in the study and also shows different statistical measures. Collectively, with simple graphical analysis, they form the structure of quantitative analysis of data. Descriptive statistics are easy to understand for general readers and show the behavior of the data. It is also used to present the data in a manageable form. Descriptive statistics cover the different aspects of the data i.e., central tendency, the measure of dispersion, the measure of normality, and trends in the data. The section covers the results descriptive statistics for the hospital sector in Shandong, eastern China. In Table 1 data are analyzed using SPSS software, which illustrates the total number of observations, arithmetic mean, standard deviation, the maximum and minimum value of each variable, which provides an entire description of the data used in the study.

Reliability analysis.

Min, Minimum; Max, Maximum; SE, Standard error; SD, Standard deviation; N, Total sample .

Table 1 represents descriptive statistics for the hospitals in Shandong, eastern China for a total of 320 observations. The mean value of the job performance is 2.4948 with a standard deviation of 0.59176. This means that the value of job performance can deviate from the mean to either or both sides of the mean by 0.59176 and the maximum value of job performance is 4.25 with 1.13 as the minimum value. The mean value of monetary incentives is 2.8203 with a standard deviation of 0.717, which again means that the mean value of monetary incentives can deviate to both sides of the average by 0.717 with a maximum and minimum value of 5 and 1. Furthermore, the table shows that the mean value of employee loyalty is 2.1538 with a standard deviation of 0.537 with a minimum and maximum value of 3.67 and 1 in contrast, transformational leadership has a mean value of 2.6167, with a standard deviation of 0.853 and has a minimum value of 1 and maximum value of 5.

The correlation table above clearly shows that the variables used in the study are related to one another, in other words, the independent variable influences the dependent variable. Simultaneously, the mediating and moderating variables also influence the independent and dependent variables. The tables above illustrate that there is a 0.180 correlation between job performance and monetary incentives, which means that if monetary incentives are increased by 1% job performance will increase by 0.180% hence it has an impact on job performance. Furthermore, the correlation matrix states that transformational leadership does influence job performance and has a greater correlation with dependent variables with a value of 0.222, apart from this, employee loyalty also has a positive correlation with job performance, with a value of 0.240 apart from this, the value of correlation is significant because the p value is < 0.05. Hence, statistics prove that the variables do have a relationship.

Normality is one of the assumptions of running the ANCOVA model on data. It states the error between observed and predicted values are normally distributed. The hypotheses for the normality are as follows (see Table 1 ):

• Ho = the error term is not normally distributed.
• H1 = the error term is normally distributed.

To use the 320 observations from the hospital sector, data were analyzed to check whether the concerned variables are normally distributed or not.

The normality assumption was checked and is supported by different tests applied to the study, among them Shapiro wilk test is simple, effective, and is a standard test for checking normality (see Tables 2 , ​ ,3). 3 ). Observing the size and nature of the data, Shapiro Wilk and Kolmogorov-Smirnov tests were applied to determine the normality of data, as shown in the table below. The table below showed that the majority of the significant values were <5%, which means the data are not normally distributed, but the table also shows that the p value in terms of nurses is significant and proves that data are normal ( Tables 2 , ​ ,3). 3 ). Hence, the null hypothesis has been rejected and an alternate hypothesis is accepted.

Correlation matrix.

Tests of normality.

Test of Normality

To check the homogeneity of variances of the data collected, Levine's test of equality of error variances was applied ( Table 4 ). The table below clearly shows that the results are significant, indicating that the mean p value is < 0.05, which proves that homogeneity of variances exists in the collected data (see Figures 3 , ​ ,4 4 ).

Levene's test of equality of error variances.

Tests the null hypothesis that the error variance of the dependent variable is equal across groups .

Confirmatory Factor Analysis

The following table reports the analysis between our variables. The coefficient value between depending on and independent variable that is job performance and monetary incentives is 0.04, which shows every unit increase in monetary incentives the job performance increase by 0.04 percent at a 5% significance level. The result shows that employee loyalty plays a mediating role in job performance through monetary incentives at a 5% significance level. Furthermore, the coefficient of transformational leadership between monetary incentives and job performance plays a moderating role of 0.09 at a 5% significance level ( Figure 3 ).

The data collected in the study were analyzed using SPSS software, regression, and ANOVA analysis techniques because we are measuring the direct impact of monetary incentives on job performance with employee loyalty as a mediator and transformational leadership as a moderator between job performance and employee loyalty. The results are shown in Table 7 .

Hypothesis Testing

To check the hypothesis, several values were used, from the model, the basic value used for analyzing the hypothesis are the beta coefficients, Adjusted R square, and R square.

Table 5 clearly shows that healthcare, monetary incentives, employee loyalty, and transformational leadership affect job performance. The value of adjusted R square that is 0.097 means that the 100% fluctuations in job performance out of which 9.7% fluctuations are due to monetary incentives, employee loyalty, and transformational leadership, support the hypotheses of this study.

Model summary.

b Dependent variable: JPM .

Furthermore, the beta coefficients from the model were used to prove each hypothesis separately.

For testing hypotheses 1 and 5, the beta coefficient 0.132 in Table 6 indicates that when the monetary incentives are increased by 1 unit the job performance increases by 0.132. It showed that the value 0.132 is positive, which also proves that there is a positive relationship between monetary incentives and employee loyalty at a significant level of 0.020 < 0.05, hence we accept our hypotheses 1 and 5 ( Table 6 ).

Coefficients.

Hypothesis 2: there exists a positive relationship between employee loyalty and job performance. The model in Table 6 shows that the beta coefficient between job performance and employee loyalty is 0.193 at a significance level of 0.001 < 0.05, which means that the 1 unit increase in employee loyalty causes the job performance to increase by 0.193 hence our second hypothesis is also accepted ( Table 7 ).

For testing Hypotheses 3 and 4, the beta coefficient 0.119 at a significance level of 0.045 <0.05 in Table 6 shows that transformational leadership does moderate employee loyalty incentives and job performance. The value 0.119 means that when transformational leadership increases by 1 unit positively the job performance of an employee increases by 0.119, which provides logical proof of Hypotheses 3 and 4.

Discussion and Conclusion

The present study examined the impact of incentives on the healthcare of employees, their loyalty, and job performance. In this study, we used transformational leadership as a moderator to see what impact both incentives and leadership have on the job performance of an employee. The data for this study were collected from doctors and nurses from both the public and private sectors to see the impact that monetary incentives and leadership have on employee loyalty and job performance. The collected data were then analyzed in SPSS through descriptive statistics, correlation matrix, and by doing confirmatory factor analysis and as well as through regression and ANOVA model. After applying these analysis tools several statistics were shown by the model such as the correlation matrix, which proved that a relationship among the variables used in the study exists. All the values in the correlation matrix showed that there was a link between monetary incentives and job performance and that leadership did play a moderating role between incentives and job performance. The correlation matrix also showed that there was a 0.180 % correlation between job performance and incentives including better healthcare. The correlation matrix also showed that transformational leadership had a greater correlation with the dependent variable, apart from the regression model, which gave the healthy justification for accepting all the hypotheses since all the beta coefficients were aligned with the hypotheses and showed a positive relationship among the variables. The key point of the discussion is that this study provides helpful material for managers and employers to understand the behavior of employees regarding their job performance. Organizations could increase employee loyalty by giving meaningful incentives to their employees. Additionally, a good and effective allocation of supervisors to a particular group of employees can increase their job performance and their loyalty toward the organization. Given that the research subjects of this study were health workers from Shandong Province, eastern China, their increased job performance and loyalty to affiliated hospitals could further increase their service quality, enabling higher patient satisfaction.

The first limitation of our study is that it is cross-sectional. The results might be different in the case of a longitudinal study. Therefore, it is recommended that further researchers undertake a longitudinal study on the same variables. Another limitation of our study is that it is quantitative and only describes the relationship between different variables. Future researchers should undertake an in-depth study examining the reasons for the variables affecting each other in this manner. Apart from this, the study was conducted in a few public and private sector hospitals in Shandong and the sample size of the study was small. Thus, future research could use a larger sample size for the same variables. In addition to this, the researchers cannot generalize the findings for this small sample, meaning further research should be conducted in different countries to explore how different factors vary and affect different contexts. Future studies should also compare how these factors affect semi-government hospitals. Further future research could also explore the impact of these variables on administration staff working in the hospital sector.

Data Availability Statement

Author contributions.

WL conceived the main idea and collected the data for analysis. YL suggested the methodology and finalized the manuscript. All authors are agreed on publication.

Conflict of Interest

The authors declare that the research was conducted in the absence of any commercial or financial relationships that could be construed as a potential conflict of interest.

Publisher's Note

All claims expressed in this article are solely those of the authors and do not necessarily represent those of their affiliated organizations, or those of the publisher, the editors and the reviewers. Any product that may be evaluated in this article, or claim that may be made by its manufacturer, is not guaranteed or endorsed by the publisher.

Academic publishing in Europe and N. America

The Effect of Non-Financial Incentives on Employee Engagement and Employee Retention

Ramiz Orujaliyev

This study examines the influence of non-financial initiatives on employee engagement and retention. Through surveys of 285 employees across diverse departments, identified key factors beyond compensation that drive engagement, such as clearly defined roles, strong leadership perception, opportunities for professional development, and a positive, supportive work environment with open communication and recognition programs. These findings reveal the potential for organizations to implement cost-effective strategies that enhance employee engagement, minimize turnover, and ultimately, strengthen their organizational effectiveness and competitiveness. Ultimately, the study underscores the crucial role of non-financial initiatives in building a culture of engagement, which serves as the cornerstone of successful employee retention strategies.

References :

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            Dyke-Ebirika, Ngozi., Amah, Edwinah. (2022). Employee Engagement and Talent Retention: A Review. South Asian research journal of biology and applied biosciences, 4(5):188.

            Emmy, Gracy, vas., Saroj, Kumar, Dash, Dr., Savita, Mohan. (2022). Sustained engagement for employee retention in education industry. International journal of health sciences, 2883-2893. doi: 10.53730/ijhs.v6ns3.6202

            Fransiska, T., Ahadiat, A., and Hayati, K. (2021). Transformational Leadership On Employee Engagement: The Mediation Of Work-Life Balance. NVEO - Natural Volatiles & Essential Oil, 8 (4), 10453-10471.

            Hay Group. (2015). Engaging hearts and minds: preparing for a changing    world. Retrieved            From:https://info.haygroupupdate.com/rs/494-VUC-482/images/Hay_Group_Engaging_Hearts_and_Minds_Report.pdf?aliId=105813088

            Kahn, W. (1990). Psychological conditions of personal engagement and disengagement at work. Academy of Management Journal, 33(4), 692-724.

            Macey, W. and Benjamin S. (2008). The Meaning of Employee Engagement. Industrial and Organisational Psychology, 1(1), 3-30.

            Mohsen, A. and Sharif, O. (2020). Employee participation in decision making and its effect on job satisfaction. International Journal of Research, 8(7), 415-422.

            Saks, A. (2018). Antecedents and consequences of employee engagement. Journal of Managerial Psychology, 21(7), 600-619.

            Seema, Bhakuni., Sandeep, Saxena. (2023). Exploring the Link between Training and Development, Employee Engagement and Employee Retention. Journal of business and management studies, 5(1):173-180. doi: 10.32996/jbms.2023.5.1.17

            Schaufeli, W. and Bakker, A. (2010). Defining and measuring work engagement: Bringing clarity to the concept. In A. B. Bakker (Ed.) & M. P. Leiter, Work engagement: A handbook of essential theory and research, 10-24.

SHRM Learning System for SHRM-CP/SHRM-SCP: People (2021)

            Shuck, B. and Reio, T. (2014). Employee engagement and well-being: A moderation model and implications for practice. Journal of Leadership and Management, 2(1), 37-52.

            Zeytinoglu, I. and Denton, M. (2005). Satisfied workers, retained workers: Effects of work and work environment on homecare workers' job satisfaction, stress, physical health, and retention. CHSRF FCRSS, 1-29.

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1 Male Staff 304 2 Female Staff 195 3 Total 499

Source: Field Survey, 2023

Sample Size and Sampling Techniques

The researcher used the census sampling approach to determine the sample size of the study because the sample size of the study was so small. As a result, 499 employees of BIRS Makurdi in Benue State were included in the study.

Sources of Data Collection

The researcher used primary sources of information for this investigation. The primary source of data consists of information collected directly from study participants through a questionnaire.

Method of Data Collection

The questionnaire is the instrument for collecting the necessary data. Due to the qualitative nature of the study, the questionnaire was used. The questionnaires were used to clarify the answers regarding all study factors. To quantify these variables, the following five-point Likert scale was used: SA-5 (strongly agree), A-4 (agree), U-3 (undecided), D-2 (disagree), and SD-1 ( I completely disagree). ).

Data Analysis Techniques

This part of the study focused on the statistical techniques used to examine and interpret the data collected. The primary statistical methods used to analyze the collected data were further covered. Both quantitative and qualitative data analysis methods were used to analyze the data. Although qualitative approaches were used to separate the data from the questionnaires, the quantitative measurements were used to produce descriptive statistics to examine frequencies, means, and percentages. Surveys underwent screening, coding, and analysis. To explicitly summarize the collected data, the results were presented using descriptive statistics such as frequencies, tables and simple percentages. The influence of the independent variables on the dependent variables was also determined using simple linear regression. Version 20.0 of the Statistical Package for Social Science (SPSS) was used for the analysis.

DATA PRESENTATION, ANALYSIS AND DISCUSSION OF FINDINGS

Data Presentation and Analysis

Using the study methodology that was previously described in chapter three, this chapter presents and analyzes data. The purpose of testing research hypotheses is to empirically provide support for the research questions that were initially posed in chapter one of this study.

Response Rate of Questionnaire

Employees of BIRS Makurdi in Benue State filled out a questionnaire to provide the study’s data.

Table 4.1: Response Rate

Number of Distributed Questionnaires	499
Returned  Questionnaires	490
Unreturned Questionnaires	9
Response rate	98.20%

Source: Field Work (2023))

BIRS Makurdi Benue State staff received a total of 499 copies of the questionnaire. 9 surveys were not returned, making 490. For the analysis, 490 completed questionnaires were considered sufficient.

Presentation of Results Based on Variables

The responses to the study’s dependent and independent variables are presented and analyzed in this chapter’s section.

Table 4.2: Employee Recognition

Items	Verbal commendation is a strategy used by management to recognize employees.		The management hosts an Employee Appreciation Day.		A bulletin board for the team is decorated with pictures of the top performers.		Employee motivation is achieved through peer-to-peer acknowledgment.
	Freq	%	Freq	%	Freq	%	Freq	%
	7	1.4	8	1.6	9	1.8	6	1.2
	15	3.1	12	2.4	21	4.3	29	5.9
	5	1	8	1.6	3	0.6	9	1.8
	200	40.8	150	30.6	201	41	202	41.2
	263	53.7	312	63.7	256	52.2	244	49.8
	490	100	490	100	490	100	490	100

Table 4.3 contains information about employee recognition. The results show that 7 respondents or 1.4% of respondents strongly disagree that the university has a functioning career advice center, 15 respondents or 3.1% of respondents disagree and 5 respondents or 1% of respondents disagree.

Of respondents are unsure 200 respondents or 40.8% of respondents agree and 263 respondents or 53.7% of respondents completely agree. Regarding the question of whether management uses verbal praise as a means of recognizing employees, 8 respondents or 1.6% strongly disagree, 12 respondents or 2.4% disagree, 8 respondents or 1.6% disagree sure, 150 respondents or 30.6% are not sure. agree, and 312 respondents, or 63.7%, strongly agree that management uses verbal praise as a means of appreciating employees.

The above table also shows that 256 respondents or 52.2% strongly agree with the statement while 201 respondents or 41% strongly agree with the statement. , disagree, disagree and 3 respondents or 0.6% were undecided.

Furthermore, 9 respondents or 1.8% strongly disagree that management organizes an employee appreciation day. The above table also shows that 6 respondents or 1.2% strongly disagree with the statement that the team’s bulletin boards are decorated with pictures of the best performing employees 29 respondents or 5.9%, 9 respondents or 1.8 % agree with the statement, 202 respondents or 41.2% and 244 respondents or 49.8% completely agree with the statement.

Table 4.3:  Training and Development

Items	I get to benefit from the continuous training and development my company offers.		I do have certain goals whenever I work at the same job.		My company’s training and development system is intriguing to me because it has a big influence.			My skills have increased as a result of my ongoing training.
	Frequencies	%	Frequencies	%	Frequencies		%	Frequencies	%
	8	1.6	12	2.4	9	1.8		10	2.0
	15	3.1	16	3.3	9	1.8		8	1.6
	9	1.8	5	1.0	8	1.6		5	1.0
	200	40.8	213	43.5	199	40.6		211	43.1
	258	52.7	244	49.8	265	54.1		256	52.2
	490	100.0	490	100.0	490	100.0		490	100.0

Table 4.5 presents responses in respect to training and development. The findings indicate that 8 respondents, or 1.6%, strongly disagree that I gain from the ongoing training and development that my employer provides. 15 respondents, or 3.1%, disagree with the statement; 9 respondents, or 1.8%, are unsure; 200 respondents, or 40.8%, agree; and 258 respondents, or 52.7%, strongly agree.

Also, from the table above, 12 respondents, or 2.4%, severely disagree, 16 respondents, or 3.3%, disagree, 5 respondents, or 1%, were unsure, 213 respondents, or 43.5%, agree, and 244 respondents, or 49.8%, strongly agree on whether my organization offers frequent training and development from which I may benefit.

The table above also shows that 199 respondents, or 40.6%, agree with the statement, while 265 respondents, or 54.1%, strongly agree with it. However, 9 respondents, or 1.8%, disagree strongly that I do have clarity of goals whenever I engage in the same job, while 8 respondents, or 1.6%, were undecided.

The table also shows that 10 respondents, or 2%, strongly disagree with the statement that my organization’s training and development structure interests me because it has an impact, as do 8 respondents, or 1.6%, 5 respondents, or 1%, 211 respondents, or 43.1%, and 256 respondents, or 52.2%, who strongly agree with the statement.

Table 4.4: Career Advancement

Items	There are plenty of prospects for growth.		Advancement depends on talent		The company provides equal opportunity for promotion		The business has a clear succession plan in place.
	Freq	%	Freq	%	Freq	%	Freq	%
	11	2.2	6	1.2	12	2.4	12	2.4
	18	3.7	7	1.4	12	2.4	17	3.5
	4	0.8	9	1.8	10	2.0	9	1.8
	201	41	215	43.9	204	41.6	209	42.7
	256	52.2	253	51.6	252	51.4	243	49.6
	490	100.0	490	100.0	490	100.0	490	100.0

Table 4.6 presents responses on career advancement. The results show that 256 respondents, or 52.2%, strongly agree, whereas 201 respondents, or 41%, strongly disagree, with 11 respondents representing 2.2% strongly disagreeing, 18 respondents, or 3.7% disagreeing, and 4 respondents, or 0.8% uncertain.

6 respondents, or 1.2% of the sample, strongly disagree that promotion is based on ability, 7 respondents, or 1.4%, disagree, 9 respondents, or 1.8%, are unsure, 215 respondents, or 43.9%, agree, and 253 respondents, or 51.6%, highly agree.

The table above also shows that 12 respondents, or 2.4%, strongly disagree that the organization offers equal chances for promotion, as do 12 respondents, or 12%, 10 respondents, or 2%, who are unsure, 204 respondents, or 41.6%, and 252 respondents, or 51.4%, who are firmly in agreement.

Last but not least, the aforementioned table shows that 10 respondents, or 2.0% of the total, strongly disagree that the firm has a well-established succession policy, while 8 respondents, or 1.6%, disagree, 5 respondents, or 1%, were undecided, 211 respondents, or 43.1%, agree, and 256 respondents, or 52.2%, strongly agree.

Table 4.5: Employee Performance

Items	The task I was given at work is tailored to my abilities, which improves my performance.		The high caliber of my work supervision enables me to raise my performance standards.		In my company, consistent job promotions are seen as a result of employees’ high levels of performance.		I consistently strive to fulfill my obligations in a way that enhances my performance.
	Freq	%	Freq	%	Freq	%	Freq	%
	12	2.4	9	1.8	6	1.2	12	2.4
	8	1.6	10	2	7	1.4	7	1.4
	6	1.2	8	1.6	4	0.8	9	1.8
	206	42.0	207	42.2	213	43.5	206	42.0
	258	52.7	256	52.2	260	53.1	256	52.2
	490	100.0	490	100.0	490	100.0	490	100.0

Table 4.6 presents responses on employee performance. The results show that only 12 respondents, or 2.4%, strongly disagree that the task assigned to me in my organization is specific to my skills and improves my performance. A small number of 8 respondents, or 1.6%, disagree, while 6 respondents, or 1.2%, were unsure. In addition, 206 respondents, or 42%, agree, while 258 respondents, or 52.7%, strongly agree.

On the other hand, 9 respondents, or 1.8%, severely disagree, 10 respondents, or 2%, disagree, 8 respondents, or 1.6%, were undecided, while 207 respondents, or 42.2%, and 256 respondents, or 52.2%, strongly agree that the quality of my job supervision helps me increase my performance level.

The table above also shows that 6 respondents, or 1.2% of the total, strongly disagree that consistent job promotions in my organization are a result of employees’ high levels of performance, while 7 respondents, or 1.4% of the total, disagree, 4 respondents, or 0.8% of the total, were undecided, 213 respondents, or 43.5%, agree, and 260 respondents, or 53.1% of the total, strongly agree.

Finally, the aforementioned table shows that 206 respondents, or 42%, agree with the statement, while 256 respondents or 52.2% strongly agree with it. This means that 12 respondents, or 2.4% of the total, strongly disagree with the statement that I always work toward the goals of my duties, which improve my performance.

Regression Analysis Results

The primary method employed in this study to describe how non-financial incentives affect employee performance is regression analysis. Under this subsection, the outcomes of each regression model are displayed for additional analysis.

Table 4.6: Model Summary

1	.994	0.987	0.987	9428.173	3	485	.000

1. Predictors: (Constant), ER, TD, CA,

Source: Researcher’s Computation using SPSS Version, 20

Employee performance (EP), the dependent variable, and the independent variables, proxies for non-financial incentives by employee recognition (ER), training and development (TD), and career progression, are shown in Table 4.7. (CA). The model summary statistics are used to explain the following pertinent statistics.

The R-value of 0.994 suggests that non-financial incentives and employee performance are strongly correlated. The R2 is thought to be 0.987. The amount of variation in the dependent variable (EP) that can be explained by the independent or explanatory variable is shown by the R2, also known as the coefficient of determination (ER, TD and CA). As a result, professional development programs implemented by the college can be used to explain 98.7% of the variation in employee performance in BIRS makurdi Benue State, according to the R2 value of 0.987. Other variables not taken into account in this model could account for the remaining 1.3% (i.e., 100-98.7). This outcome demonstrated a strong correlation between non-financial incentives and workers’ performance over the research period.

According to the adjusted R2 of 98.7%, the findings of this study would still hold true if the complete population were taken into account. This outcome demonstrates unequivocally that at BIRS Makurdi, Benue State, staff performance is highly responsive to non-financial incentives.

Table 4.7:  Regression Coefficients ’

1	(Constant)	0.338	0.101		3.353	0.001
	ER	-0.364	0.067	-0.192	-5.411	.000
	TD	1.850	0.052	0.946	35.236	.000
	CA	-0.045	0.055	-0.025	-0.814	0.416

a. Dependent Variable: EP

Source: Researcher’s Computation using SPSS, Version 20

To ascertain the impact of non-financial incentives in BIRS makurdi Benue State, the regression result as shown in Table 4.8 above was used. The table demonstrates that the employee’s performance is calculated at 0.338 when non-financial incentive surrogates are not a factor to be taken into account. This basically means that when all variables are maintained constant, employee output will significantly increase by 0.338 units due to factors not included in this study.

The outcome also showed that employee recognition had a standardized beta coefficient of -0.192 and a corresponding p-value of 0.0000. (ER). According to this finding, a change in employee recognition will result in a 19.2% boost in employee performance. This finding suggests that employee acknowledgment greatly improves staff performance in BIRS makurdi Benue State.

The predicted standardized beta coefficient for training and development (TD) is 0.946, with a matching p-value for training and development of 0.0000. (TD). This finding suggests that a change in the training and development unit will result in a 94.6% boost in employee performance. This finding suggests that training and development greatly improves employee performance at BIRS Makurdi in Benue State.

Last but not least, professional advancement is anticipated to have a standardized beta coefficient (CA) of -0.025 and a corresponding p-value of.416 (CA). This finding suggests that a little decline in employee performance of 2.5% will arise from a shift in career development. This finding suggests that career development has a negligible negative impact on workers’ productivity in BIRS Makurdi, Benue State. According to the data, employee development and recognition programs have a big impact on how well BIRS makurdi Benue State personnel perform. However, career advancement shows the opposite.

Test of Research Hypotheses

Table 4.8 lists the standardized beta coefficients and corresponding p-values for each independent variable that was subjected to a regression with the dependent variable. These p-values were used to test the study’s hypotheses at a 5% level of significance, allowing a choice to be made as to whether to accept or reject the study’s null stated hypotheses. They referred to the coefficients of all the independent variables in both models. This is done in accordance with the decision rule for the study that was previously described in chapter 3. The evaluation’s findings are as follows:

• Employee recognition has a significant effect on employee performance in BIRS Makurdi Benue State.
• Training and development has a significant effect on employee performance in BIRS Makurdi Benue State.
• Career advancement has no significant effect on employee performance in BIRS Makurdi Benue State.

Discussion of Findings

The impact of non-financial incentives on employees’ performance is empirically examined in this research. Three non-financial incentive independent factors were found and regressed against the dependent variable (employee performance). The primary statistical approach utilized to examine the impact of independent factors on dependent variables was regression analysis. The findings and consequences of the test of hypotheses are explained in the paragraphs that follow.

Employee recognition and Employee performance

When the first hypothesis of the study was tested, it was found that the standardized beta coefficient p-values ​​were used in a two-tailed test with a significance level of 5% to determine whether non-financial incentives in BIRS Makurdi, Benue State, have a significant impact on employee performance. Employee recognition analysis results included negative beta coefficients and significant p-values ​​of 0.000. As a result, the null hypothesis was refuted at the 5% significance level. The study concludes that employee recognition has a significant impact on employee performance at BIRS Makurdi, Benue State. The organization may not have organized an employee recognition day for its employees, which could explain the negative beta coefficient related to employee recognition. This research suggests that conducting an employee appreciation day will significantly improve employee performance at BIRS Makurdi, Benue State. This finding is consistent with research by Nayak, Nayak, and Jena (2020), who found that employee recognition influences an employee’s performance by reinforcing and motivating certain behaviors, practices, or activities that lead to greater performance and positive outcomes lead to results.

Training and Development on Employee Performance

The second hypothesis study sought to determine the extent to which employee performance at BIRS Makurdi, Benue State is influenced by training and development. The SPSS study showed that training and development had a positive impact on employee performance, with significant p-values ​​of 0.000. At a significance level of 5%, the study therefore rejects the null hypothesis. As a result, the study concludes that employee performance at BIRS Makurdi, Benue State is significantly influenced by training and development. The conclusion from this data is that employees whose performance can be improved through workshops and seminars will do so. This result is consistent with that of (Khan, Waqas, & Muneer, 2017).

Career Advancement and Employee Performance

Finally, to determine whether career advancement significantly influences employee performance at BIRS Makurdi, Benue State, the p-values ​​of the standardized beta coefficients were applied at the 5% significance level for a two-tailed test. The results of the analysis showed a negligible negative beta coefficient for career advancement of 0.416, which is notable above the 5% level. The significance level of 5% was used to accept the null hypothesis. Therefore, the study concludes that career development has little impact on employee performance at BIRS Makurdi, Benue State. The fact that the effect is negative suggests that career advancement only slightly reduces employee performance. This finding may be due to the fact that the organization under study either has no interest in providing career advancement opportunities to its employees, or because of favoritism, nepotism, etc., these opportunities were given to people who were not qualified for them. and corruption, which negatively impacted their performance. This result is consistent with findings from (Agbenyegah, 2019).

SUMMARY OF FINDINGS

The impact of non-financial incentives on employee performance in BIRS Makurdi, Benue State, is empirically investigated in this study. Employee recognition, career progression, and training and development were used as proxies for the independent variable, non-financial incentive, in a regression analysis against the dependent variable, employee performance. The primary statistical approach utilized to assess the impact of the independent factors on the dependent variable was regression analysis. Moreover, hypothesis tests were carried out. The study’s key findings were summarized as follows:

• In BIRS Makurdi Benue State, employee recognition has a major impact on staff performance.
• Employee performance at BIRS Makurdi, Benue State, is greatly influenced by training and development.
• In BIRS Makurdi, Benue State, employee performance is not considerably impacted by career promotion.

In BIRS Makurdi, Benue State, this study empirically investigated the impact of non-financial incentives on staff performance. The study concludes that non-financial incentive strategies significantly improved employees’ performance in BIRS Makurdi, Benue State, in line with the findings of this study, which were favorable to a significant effect of non-financial incentive on employees’ output, quality service delivery, and achievement of target.

• Abdussalam Ayad A Kerdasi and S.M. Ferdous Azam,(2021) “The Impact of Non-Monetary Incentive on Employees Commitment in Telecommunication Sector in Libya: Literature Review , International Journal of Multidisciplinary Research and Publications (IJMRAP), 3 (7) 69-75.
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Employee Motivation Incentives and Their impact on the Organization's Productivity

2019, Texila International Journal of Management

This article presents literature on employee motivation incentives and evaluates their impact on organizational productivity. The article aims at explicitly highlighting the effect of incentives on different elements that influence organizational productivity. A qualitative analysis of literature was employed to consolidate literature that informed the study. The findings indicate that incentivizing the organization's activities undertaken by human resources helps in improving organizational productivity. The results showed that incentives increase productivity by enhancing the following elements; employee work performance, employee engagement, innovation and creativity, organizational commitment and job satisfaction. This finding will provide useful information to organizations when designing incentive schemes and analysing their functions and general impact.

Related Papers

Ijbmm Journal

The study investigates the effects of incentives on employee's productivity. The study had the following objectives: The relationship between incentive and productivity of employee's in organisations, to determine the influence of employee's productivity incentives on employee productivity in the organization, to analyze the link between incentive and employee productivity in organizations in Nigeria. To achieve these goals, a questionnaire was designed based on the objectives. The completed questionnaires were processed and analyzed using Pearson Product Moment Correlation Coefficient. The findings of this study revealed that there was a positive relationship between incentives and productivity, alongside monetary incentives, another key factor in motivating employees is to involve them in the process aimed at attaining organizational effectiveness because without their cooperation the organization cannot perform. The study recommends the establishment of a unit to look at issues of incentives that will enhance productivity

Bertram Spector

Jonalyn Emen

A substantial body of theory and empirical evidence exists to attest to the fact that motivation and productivity are concepts which have been subjects of immense interest among researchers and managers. The objective of this paper is to conduct a literature review and analysis on theories and empirical evidence on the relationship between employee motivation and organizational productivity with a view to drawing important lessons for managerial practice. To achieve this, the paper conducted a review of some of the key theories and empirical studies on motivation and its impact on employee productivity drawing experiences from diverse organizational settings in Nigeria and several other countries. The study revealed that there are different factors to consider in motivating employees: some monetary or financial such as pay and others are non-financial like recognition and challenging jobs. Important implications are presented for managerial practice.

sruthi p vijayaraghavan

Femi Praise

MOYIN P R A I S E FEMI

One of the most important functions of management is to ensure that employee work is more satisfying and to reconcile employee motivation with organizational goals. With the diversity of current jobs, this is a dynamic challenge. What people value and enjoy is influenced by many factors, including the influence of different cultural backgrounds. This research report examines employee motivation and its impact on employee performance. The study examines some common theories of motivation that can be used in an organization to improve employee performance. The study showed that employees have their differences in terms of the concept of motivation. Various forms of theories of motivation in literature have been debated along with their applications and implications. Three questions were examined: What is motivation? What kind of motivation can best be used to increase employee performance? The results of the study show that motivation can increase or decrease employee performance. If the chosen form of motivation meets the needs of the employee, their performance increases. If, on the other hand, the chosen form of motivation does not satisfy the needs of the employee, the benefit decreases. It therefore encourages organizations to understand the motivating need of each employee to improve performance.

This research project entitled " The Impact of Motivation on the Productivity of Employees in an Organization " has as purpose to look for those motivational variables that affects output in an organization and also to come with long lasting solution to problems associated to output in organizations. The main objective of the research is to assess the impact of motivation on workers performance in an organization and case for the study was SO.NA.RA Limbe. The primary (questionnaires and interview) method were used to collect data from field. The method analysis is random sampling (sampling size 80) and the tools used for data analysis are descriptive statistics, percentages and frequencies. The result of this study shows that motivation has a significant effect on organizations' output. Some variables other than motivational factors were discovered to be having an important effect on outputs such as; these therefore let to the following recommendation: firstly managers should de-emphasize seniority and emphasize merit and hard-work as yardstick for promotion; There should be a searchlight on the leadership style in the organization and efforts should be made to promote only productive only productive and effective worker; organization should encourage initiative and creativity by allowing for some flexibility in application of rules and regulation and lastly there should be more delegation of power at all levels of the organization and more towards decentralization.

International Journal of Innovative Research and Development

Edward Affainie

Introduction Maximizing productivity is crucial for businesses to succeed in today's competitive market (Varma, 2018). Similarly, Perkbox (2021) adds that an organization's success is mainly dependent on the success of its workers and that success is, in turn, driven by the individuals' motivations. Organizations must improve employee enthusiasm to increase productivity. A person's level of motivation at work determines how much they will strive toward their professional objectives. Employees who feel inspired by their jobs are likelier to go above and beyond, improving the organization's bottom line. Several experts, consultants, and writers have studied the correlation between employee motivation and organizational output. These two ideas are fundamental to understanding the importance of human capital as a production input. In the same vein, Novitasari et al. (2020) lend credence to the idea by stressing the importance of a motivated staff in bolstering both the competitive edge and the bottom line. That is why it is up to management to devise strategies and methods that inspire employees to contribute to the company's ultimate goals of increased output and profitability. Motivation training, which entails instructing staff members to focus on organizational operations, may increase employees' effectiveness in their boundary-spanning positions (Tran, 2017). Therefore, this paper explores how to maximize productivity through employee motivation. The study is mainly based on secondary research, drawing on existing knowledge from scholarly articles, books, and websites on employee motivation and productivity. Based on the analysis, we identify key factors that can maximize employee motivation and productivity. This includes factors such as recognition and reward, clear communication, opportunities for growth and development, and a positive work environment. We summarize the findings and conclude how organizations can implement strategies to maximize employee motivation and improve productivity in the workplace. We further recommend that organisations implement the strategies identified in the study to maximize employee motivation and productivity. 2. Motivational Concept Empirical studies on motivating tactics have investigated several intrinsic and extrinsic methods. This section will look at the data-driven studies conducted on different motivating strategies.

Dr. Nurul M O H A M M A D Zayed

Employees prefer to work in the workforce to achieve the organization&#39;s priorities and expectations. However, the manager&#39;s job comprises of several aspects, including teamwork, collaboration, decision-making, communication and organizational inspiration. The biggest obstacle that is being addressed by management is the reinvention of management owing to the demanding job climate and professional capabilities of the supervisors, which have been deemed inadequate to inspire workers in the workforce. Managers also ought to maintain a positive interaction with their workers at work, and that will be achieved by offering assistance and encouragement to improve employee morale at work and increase their efficiency. However, inspiration and dedication are the core human resource in the Company as they will boost the workplace&#39;s efficiency and increase worker satisfaction. The research implemented the quantitative and qualitative approach throughout addressing Different retail ...

Ahmed A. Asowe

Reviews of Management Sciences

Sherbaz Khan

Purpose: The main objective of this research was to examine the importance of training and development in the workplace. Methodology: Several dimensions of employee performance were analyzed, including productivity, job satisfaction, employee satisfaction, employee commitment, and decision-making. An adopted five Likert scale questionnaire was adopted for the online data collection from 100 respondents from the telecommunication industry. Convenience sampling was used for sampling and the PLS-SEM was the main technique for data analysis using smart PLS software. Findings: The results suggest that organizational performance and employee performance in the telecommunication sector in Pakistan increase if there is a significant relationship between employees and decision-making. Similarly, employees with a high level of job satisfaction and affective commitment will ultimately have a higher potential for productivity and career satisfaction. Conclusions: The study concluded that employ...

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January 2019

• Cardiff Metropolitan University (United Kingdom)

The Nigerian government have applied several reforms to develop the performance of its workforce; in particular, how best to motivate the public sector employees to achieve this end. This research examines employees' judgement with regards to the financial and non-financial incentives, organisational culture and leadership styles impact on the motivation of employees and how their motivation becomes an attitude and reason for not performing well. A subsidiary commitment of the research is to study the relevance of Western theories of motivation for employee motivation in the Nigerian public sector. Several studies were developed from the Western countries where the theories of motivation originated from, whereas reduced study have been carried out in underdeveloped African nations like Nigeria. The foregoing shows that the Nigerian public sector lacks any strategy to harness the motivation of its staff, whether through financial or non-financial incentives, leadership styles, organisational culture as expressed by the theories of motivation. A hypothetical model of the relationships between these factors provided a conceptual framework that guided the research. A mixed research approach using both questionnaires (quantitative) and interviews (qualitative) was employed to enable the researcher's understanding of the processes by which the factors considered impinged on public sector employees' motivation. The study findings justify and establish the relevance of the Western motivation theories to the Nigerian public sector, and besides skills and technological expertise, this study proves that leadership styles, financial and non-financial incentives as well as organisational culture are drivers of employee motivation while motivation is a major driver of employee performance. This study key contribution is that organisational culture significantly impacts on employees' motivation negatively based on its bureaucratic nature in the way it envelopes the policies, rules and regulations, structures and processes that determines both financial and non-financial incentives, leadership approach and job variables. iv Therefore, it is imperative that the Nigerian public sector give keen attention to the development of a robust and flexible culture that will strategically develop and support the implementation of a performance driven employees' motivation that takes into account the finding from this study. Future research recommendation revealed through this study emphasises further investigation into the significance of organisational culture in the management of organisational policies, rules, regulations, structures and processes that determines key motivation factors so as to enhance both organisational and employee performance.

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Impact of Financial Incentive on Employee Productivity

International Journal of Management, Technology And Engineering, Volume XI, Issue II, 2021

9 Pages Posted: 17 Feb 2021

Mohammad Sadiq Ruhnama

Nangarhar university, bilal tayeb.

Alberoni University

Shamshad Amirkhail

Dawat university.

Date Written: February 10, 2021

This study is an analysis of the impact of financial incentives on the employee productivity in the organization. In today’s competitive business scenario, companies are called up on to prepare the best market strategy to improve their performance, and to come up with the way to keep their employee motivation on the highest level so is through the company as a whole can perform well within the competition. Data collection method primary and secondary data. The primary data is questionnaire and I collected real information. That includes price of every product segment and some variables mention in questionnaire. Secondary data, on the other hand is basically primary data collected by someone else. Researchers reuse and repurpose information as secondary data because it is easier and less expensive to collect. My research question is (What is the impact financial incentive on employee productivity?) (What is financial incentive?) (What is employee productivity?) My main hyporesearch is that it seems that there is a positive relationship between the financial incentives and the employee productivity in the organization. (It seems that there is a negative relationship between the financial incentives and the employee productivity in the organization.) The finding suggest that financial incentives are the best option to motivate employees for excellent performance in the organization and they affect the motivation level of employees in a significant manner. Salary increase has been rated as the incentive factor that motivates the employees most followed by recognition, healthcare and promotion leave. Performance related pay is the most valued incentive factor for the employees who belong to above 35 years of age. Only a few employees agree that they receive fair and just incentives for their effort and level of responsibility in the organization. Large business enterprises have a variety of reward and incentive programs as opposed to small and medium enterprises. Long-term financial incentives are more effective compared to short-term financial incentive programs. Group directed financial incentives are more effective than individually directed incentives. The study also confirm the main hyporesearch to have that financial incentive are posting worked with employee productivity.

Keywords: Financial incentives, employee productivity, performance, employee promotion

Suggested Citation: Suggested Citation

AH1 Jalalabad Afghanistan

Bilal Tayeb (Contact Author)

Alberoni university ( email ).

Kabul Afghanistan

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