EFFECT OF FINANCIAL AND NON-FINANCIAL INCENTIVES ON STAFF PRODUCTIVITY
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EFFECT OF FINANCIAL AND NON-FINANCIAL INCENTIVES ON STAFF PRODUCTIVITY
CHAPITRE ONE
INTRODUCTION
1.1. Background of The Study
All organisations are concerned with what should be done to attain high levels of productivity through employee motivation and the use of the appropriate type of reward. As a result, the impact of financial and non-financial incentives has become a hot topic in human resource management.
As a result, many management theories, principles, and techniques have evolved in response to these challenges. However, most scholars believe that more conceptual and empirical work is needed to demonstrate the link between financial and non-financial incentives and staff productivity.
However, some studies have documented in their work that financial incentives are readily perceived as having a high instrumental value that makes putting forth extra effort worthwhile.
Despite an expanding collection of literature and empirical research on the effect of financial and non-financial incentives on worker productivity, the subject remains difficult. As a result, a survey on the influence of financial and non-financial incentives on staff productivity in Nigeria Postal Services Kaduna is required.
1.2 Statement of the Problem
Nigeria Postal Services (NIPOST), like other public enterprises, is constrained by the problem of using non-performance based elements such as salaries to compensate its staff rather than performance-related pay structures, which has hampered productivity because it does not encourage employees to put in extra effort in their work.
This is due to the fact that their compensation is not based on incentive schemes that elicit greater effort from workers as a result of unfriendly government wage regulations and bureaucratic inefficiencies.
As a result, it is necessary to investigate the impact of financial and non-financial incentives on staff productivity in Nigeria Postal Services Kaduna.
1.3 Objectives of The Study
The primary goals of this study are to investigate the impact of financial and non-financial incentives on staff productivity at NIPOST Kaduna.
The study’s objectives are as follows:
Determine whether NIPOST compensation is based on incentive schemes that push employees to perform.
Examine all financial incentives provided by NIPOST to its employees and their impact on worker productivity.
Identify non-monetary incentives utilised to increase staff efficiency at NIPOST Kaduna.
Determine the limits impeding the NIPOST incentive scheme and propose solutions to address the identified issues.
1.4 Significance of the Research
This study examines the impact of financial and non-financial incentives on organisational staff performance. As a result, the study will be advantageous to the organisation understudy (NIPOST) in terms of policy formation regarding staff incentive schemes and remuneration.
The study will add to existing knowledge on the effect of financial and non-financial incentives on worker performance in schooling.
Finally, for academics and human resource researchers, the study will serve as a jumping off point for further research.
1.5 Research Questions
The following research questions are addressed in this study:
Is NIPOST remuneration based on a performance-based incentive scheme?
What types of financial incentives does NIPOST provide to its employees, and how do they affect worker productivity?
What non-monetary incentives does NIPOST use to increase worker productivity?
What are the obstacles to the NIPOST incentive programme, and how may these obstacles be overcome?
1.6 Scope of The Study
The research looks at the effect of financial and non-financial incentives on worker productivity at NIPOST Kaduna. This examination spans the NIPOST incentive schemes from 2006 to 2011.
1.7 Limitations of The Study
The study is limited by respondent bias on the topic matter, the use of a single study area, and the uncertainty about generalisation of findings due to the use of a single research methodology and instrument.
Because just NIPOST was studied, it is unknown whether the same results would be found in other organisations.
Respondent bias and a nonchallant attitude are other significant limitations of this study.
Because the questionnaire is the only instrument used to gather data and the survey research methodology is the only design employed for the study. It is unknown whether the same outcome would be obtained if a different sort of design and instrument were utilised. All of these factors add to the research’s limitations.
1.8 Definition of the Terms
Financial Incentives: Financial rewards or remuneration used to inspire employees.
Non-financial Incentives: Incentives other than monetary rewards.
Performance incentives are rewards that encourage employees to work more.
Productivity is the rate at which employees work and the amount they produce in an organisation.
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