COMPARATIVE STUDY OF NON FINANCIAL INCENTIVE AND EMPLOYEE JOB SATISFACTION
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COMPARATIVE STUDY OF NON FINANCIAL INCENTIVE AND EMPLOYEE JOB SATISFACTION
CHAPITRE ONE
INTRODUCTION
1.1 THE BACKGROUND OF THE STUDY
Adequate worker remuneration has been discovered over the years to be one of the ways an organisation can boost employee job satisfaction and, as a result, productivity (Muogbo, 2013). Over the years, and especially in light of the current global economic trend, most employers of labour have realised that in order for their organisations to compete competitively,
employee work satisfaction plays a significant role in deciding the organization’s performance. Employee motivation is critical in any organisation, not only for organisational progress but also for individual employee growth (Meyer and Peng, 2006).
The importance of human efforts in accomplishing organisational objectives cannot be overstated. The entire success of an organisation is directly proportional to the amount of effort put in, either positively or adversely, by workers individually or collectively to achieve the desired goals (Agu, 2003).
The type of incentives used to inspire the workforce, among other factors, determines optimal employee job satisfaction. Workplace incentives serve as a bridge between desirable employee attitudes and outcomes that make employees feel valued (Whetten and Cameron, 2007).
Incentives are essential considerations in determining an employee’s degree of contribution to an organisation. Incentives are economic benefits provided by an organization’s management such as pay, promotion,
verbal recognition, and both financial and non-financial rewards that seek to attract employees and keep them motivated within the organisation for better employee job satisfaction.
Employee motivation is important for job satisfaction; therefore, effective incentive systems in an organisation may impact employees’ attitudes in the workplace and result in an overall turnaround with improved organisational performance. After all, it is only satisfied employees who would give their all.
Furthermore, with the right incentives, employees will develop positive attitudes towards their jobs, feel devoted to the organisation, and become actively involved in the organization’s development processes. Employees who are satisfied with their work are less likely to quit.
Financial and non-financial incentives are the two primary categories of incentives. Pay, bonuses, allowances, insurance, promotions, and job security are examples of extrinsic rewards, whereas intrinsic rewards include employee recognition and appreciation, meeting new challenges through the provision of an enabling environment, a caring attitude from employers, mentor and mentee relationships, and motivating the employee.
Non-monetary incentives are one of the many cost-effective methods that organisations around the world use to compensate employees in order to attract, motivate, and retain them in the workplace, and they continue to be one of the factors that contribute to an organization’s overall success in meeting set goals and objectives.
A non-monetary incentive is critical to an employee’s view of workplace reward systems (Khan, Shahid, Nawab, &Wali, 2013). Non-monetary incentives are used in organisations to drive people towards job satisfaction. Organisations can only function with a motivated staff that ensures efficiency, high organisational output, and the organization’s profitability.
Demotivated individuals are more likely to put in little or no effort in their assigned jobs, resulting in low quality work production, and may even leave the organisation if a better chance arises elsewhere. Employees who are well motivated with incentives, on the other hand, are more likely to be determined, innovative, and loyal to their organisations.
Employees who are highly motivated are dedicated and contribute favourably to high organisational turnover, which typically results in optimal levels of employee job satisfaction, retention, loyalty, and overall organisational performance.
Previous research (Orvill et al, 2000; Sonawane, 2008; Lotta, 2012; Saira et al, 2014) has found that non-monetary incentives are more strong than monetary incentives in terms of improving employee work satisfaction.
These non-monetary incentives include the top three non-monetary tactics, such as praise and appreciation from immediate superiors, leadership attention, and opportunity to head projects or task groups.
Non-monetary incentives may include employee recognition, awards, opportunity, and flexibility. Employees must feel welcomed, valued, and appreciated in order to give their all in an organisation.
Effective non-monetary workplace incentives can help an employee feel appreciated and respected, resulting in some amount of satisfaction from the job and the obligations involved.
1.2 STATEMENT OF THE PROBLEM
Employee motivation boosts workplace productivity and employee job satisfaction, according to employers in both the public and private sectors of the Nigerian economy. However, few organisations recognise that non-monetary incentives can help increase employee morale and instill a sense of responsibility in them to do their best to take the organisation ahead.
This is because many organisations today, both in the public and private sectors in Nigeria, depend solely on financial incentives to motivate employees towards job satisfaction. Workers frequently feel overworked and underappreciated by the companies for which they toil day in and day out.
Employee unhappiness and indifference are exacerbated by layoffs, unpleasant work circumstances, ever-increasing demands, unappreciative managers, and an unsupportive workplace atmosphere.
It is also worth noting that money and other material goods cannot always satisfy human beings. Employees frequently have high expectations for non-financial incentives such as recognition, rewards, and acclaim from higher officers and management of the organisations for which they work, in addition to bonuses and other materialistic prizes.
Employees who work hard may get frustrated with the mere concept that someone somewhere in the organisation recognises their efforts, no matter how minor, but refuses to thank or recognise them for it.
Every organisation, whether public or private, need motivated employees who are competent and efficient in carrying out their duties. This not only improves organisational performance but also offers the organisation a competitive advantage.
Employees that are driven to work hard and creatively to achieve organisational goals are one of the most critical inputs to organisational success and performance.
As a result, the problem for organisations is to determine how to ensure that their employees are highly motivated, as well as the type of incentives or incentive systems to implement for overall organisational performance (Orvill, 2000).
According to studies, rewarding employees is one of the best methods to keep an organization’s personnel motivated, with a significant association between employee reward and job satisfaction and overall organisational performance. As a result, motivation influences employee attitudes towards work and, as a result, job satisfaction.
However, few studies have been conducted in Nigeria to study the relationship between non-monetary incentives and employee job satisfaction. As a result, it is critical to implement an effective and dependable strategy of motivating people for job satisfaction. In keeping with this goal, this research focuses on a comparison of non-monetary incentives and employee job satisfaction in an organisation.
1.3 PURPOSE AND OBJECTIVES OF THE STUDY
The purpose of this research is to conduct a comparative examination of non-monetary incentives and employee job satisfaction in organisations. The study’s specific goals are as follows:
To assess the effect of non-monetary incentives on employee job satisfaction in an organisation.
To determine whether there is a link between non-monetary incentives and employee job satisfaction in the organisation.
To determine whether or not acknowledgment and appreciation have a positive impact on the organization’s employees.
1.4 RESEARCH QUESTIONS
The following research questions will be addressed in this study:
Do non-monetary incentives influence employee job satisfaction in an organisation?
Is there a link between non-monetary incentives and employee job satisfaction in your organisation?
Does the organization’s personnel benefit from recognition and praise?
To answer the research issue, the following hypotheses are proposed:
Ho1: Non-monetary incentives have little effect on employee job satisfaction in an organisation.
Ho2: In an organisation, there is no relationship between non-monetary incentives and employee job satisfaction.
Ho3: Employees of the organisation benefit from recognition and praise.
1.6 THE SIGNIFICANCE OF THE STUDY
This comparative study on non-monetary incentives and employee job satisfaction is significant for the following reasons:
This study will be a beneficial tool for policymakers and company management in implementing rules on non-financial incentive packages for employees.
This study will benefit society as a whole because more organisations are becoming aware of non-monetary rewards that focus on the employee’s basic requirements.
The findings of this study will also contribute to the current body of knowledge on the subject of non-monetary incentives and employee job satisfaction.
1.7 SCOPE OF THE STUDY
This research is limited to the Seven Up Bottling Company. During this study, questionnaires will be sent to various kinds of workers across all areas of the organisation. The issues to be addressed in this study include the impact of non-monetary incentives on workers’ attitudes, workers’ satisfaction with the organization’s non-monetary incentive system, and the challenges and factors influencing non-monetary incentive adoption.
1.8 DEFINITION OF TERMS
Employee: a person employed by another or a firm for compensation and salary in a position lower than that of executive.
Incentives: motivates someone to do something or work harder.
Motivation is the act or process of providing someone with a purpose to perform something. The state of being motivated or eager to act or work.
Non-monetary incentives: any type of material reward that is not monetary in nature.
Satisfaction is defined as the fulfilment of one’s wishes, expectations, or needs, as well as the pleasure obtained from this.
Organisation: an administrative or functional structure built for a specific purpose, such as a firm or enterprise.
Organisational Performance: an organization’s actual output or results as assessed against its expected outputs or goals and objectives.
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