The Impact of Financial and Non- Financial Incentives on Job Satisfaction

  1. CHAPTER 1: INTRODUCTION – The Impact of Financial and Non- Financial Incentives on Job Satisfaction
    1. Introduction

Implementing practices that improve job satisfaction is the main function of human resource management. Employees must be motivated through financial and non- financial rewards in order to perform and be satisfied in their jobs. Unavailability of financial and non- financial incentives results in high levels of job dissatisfaction and eventual low productivity and performance levels of employees. The benefits employees foresee for themselves and their families motivate them to give their best. Rewarding is one of the main strategies used by managers to motivate their employees. Rewards can be in terms of monetary or non- monetary. Therefore, the main purpose of this study is to determine the impacts of financial and non- financial rewards on job satisfaction. The Impact of Financial and Non- Financial Incentives on Job Satisfaction.  

  1. Rationale for the Study

Employee motivation is the backbone of the performance and productivity of any organization. The retail sector in Australia is very competitive and hence companies invest on their human resources to increase their competitiveness and competitive advantages. As mentioned by Harcharanjit, Rossilah, Mas Bambang, Maizaitulaidawati, Yu and Sukmindar (2017), for a long period of time companies use financial rewards more than non- financial rewards to motivate their human resources and hence increase their job satisfaction levels.

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            Questionnaire data collection method will be used to gather data because it gathers data from a large sample size and it is easy to conduct (especially self- administered) as compared to interviews and focus group. The collected data will be analysed through SPSS computer program whereby tools such as Pearson’s correlation, regression, and t-tests will be used to test the relationship between the variables. It is expected that the study results will agree with the null hypothesis that non- financial incentives are more effective in increasing job satisfaction as compared to financial incentives. The Impact of Financial and Non- Financial Incentives on Job Satisfaction.   

  • ACTION PLAN

The following plan will be used to ensure that the study is conducted within the indicated time.

Area of Work Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7
Background Reading              
Establishing the research aims and objectives              
First meeting with the supervisor              
Developing Theories              
Writing Literature Review Chapter              
Methodology Chapter              
Data collection              
Second meeting with the supervisor              
Is regulating Data Analysis              
Presentation, interpretation, and discussion                     
Writing Conclusion & Recommendation Chapter              
Final Submission              

BIBLIOGRAPHY – The Impact of Financial and Non- Financial Incentives on Job Satisfaction

Abdullah, Alkhaliel and Wan, Hooi. 2013. ‘Relationships of non-monetary incentives, job satisfaction and employee performance.’ International Review of Management and Business Research 2(4), 1085-1092

Asiedu, Elvis. 2015. ‘Supportive organizational culture and employee job satisfaction: A critical source of competitive advantage. A case study in a selected banking company in Oxford, a city in the United Kingdom.’ International Journal of Economics and Management Sciences 4(7), 1-8. The Impact of Financial and Non- Financial Incentives on Job Satisfaction.

Bwire, Jackson., Ssekakubo, Johnson., Lwanga, Freddie. and Ndiwalana, George. 2014. ‘Employee motivation, job satisfaction and organizational performance in Uganda’s oil sub-sector.’ Global Advanced Research Journal of Management and Business Studies 3(7), 315-324

Creswell, John. 2007. Quality inquiry and research design: Choosing among five approaches (2nd Ed). New York: Sage

Erbasi, Ali. and Arat, Tugay. 2012. ‘The effect of financial and non- financial incentives on job satisfaction: An examination on food chain premises in Turkey.’ International Business Research 5(10), 136-146

Gabriel, Justin. and Nwaeke, Lawrence. 2015. ‘Non- financial incentives and job satisfaction among hotel workers in Port Harcourt.’ Journal of Scientific Research and Reports 6(3), 227-236

Hair, Joseph., Wolfinbarger, Mary., Money, Arthur., Samouel, Phillip. and Page, Michael. 2015. Essentials of business research methods. London: Sage. The Impact of Financial and Non- Financial Incentives on Job Satisfaction.

Harcharanjit, Singh., Rossilah, Jamil., Mas Bambang, Baroto., Maizaitulaidawati, Hussin., Yu, Boni. and Sukmindar, Singh. 2017. ‘Impact of financial and non- financial incentives on employee performance.’ Advanced Science Letters 23(1), 146-150

IBISWorld. 2017. ‘Consumer goods retailing in Australia: Market research report.’ IBISWorld 2-1-10

Marcyk, Geoffrey., DeMatteo, David. and Festinger, David. 2005. Essentials of research design and methodology. New York: Wiley

Matthews, Bob. and Ross, Liz. 2010. Research methods: A practical guide for the social sciences (1st Ed.). New Jersey: Wiley. The Impact of Financial and Non- Financial Incentives on Job Satisfaction.

Mitchell, Mark. and Jolley, Janina. 2012. Research design explained. London: Cengage Learning

Mordor Intelligence. 2016. ‘Retail industry in Australia: Major trends, growth and opportunities (2016-2021).’ Mordor Intelligence. Retrieved from https://www.mordorintelligence.com/industry-reports/retail-industry-in-australia

Neergaard, Helle. and Ulhoi, John. 2007. Handbook of qualitative research methods in entrepreneurship. New York: Sage

Riemer, Frances., Lapan, Stephen. and Quartaroli, MaryLynn. 2012. Qualitative research: An introduction to methods and designs. London: Wiley. The Impact of Financial and Non- Financial Incentives on Job Satisfaction.

Rukh, Lala., Abbasi, Saddam. and Choudhary, Muhammad. 2015. ‘Analysis of factors affecting employee satisfaction: A case study from Pakistan.’ International Journal of Management Practice 3(1), 23-30

Saunders, Mark., Lewis, Philip. and Thornhill, Adrian. 2012. Research methods for business students. New Jersey: Sage

Yousaf, Saira., Latif, Madiha., Alsam, Samaira. and Saddiqui, Anam. 2014. ‘Impact of financial and non- financial rewards on employee motivation.’ Middle-East Journal of Scientific Research 21(10), 1776-1786. The Impact of Financial and Non- Financial Incentives on Job Satisfaction.

APPENDIX

Questionnaire Sample

  1. Background Information
     
  2. Gender
    Male                                        Female

  3. What is your age?
    20-29 years      30-39 years      40-49 years      50 or above

  4. What is your highest education level?
    Secondary school        Diploma          Bachelors degree         Masters            PhD
  5. Which sector do your company belong?

Fashion

Supermarket

  • Are you full time or part time employee?   Yes          No

  • What is your job position in the organization?
  • For how long have you worked in the organization?
  • Based on priority, name the five most important financial incentive offered by your company. The Impact of Financial and Non- Financial Incentives on Job Satisfaction.
Incentives  
Letter of Appreciation  
Health Insurance Cover  
Insurance life cover  
Promotions  
gift cards  
Trophies  
Employee empowerment  
Participation in decision making processes  
Flexible working hours  
Opportunities for foreign business trip  


9. Why do you think they are important?

Rate your responses for the following questions in a scale of 1-5 where 1 represents strongly disagree and 5 represent strongly agree

Questions Strongly Disagree Disagree Neither Agree nor Disagree Agree Strongly Agree
I am motivated when my salary and other financial benefits are paid regularly            
Cash awards encourage me to perform well          
My most important goal as an employee is to have financial security          
I am motivated when promoted in the organization          
I perform better in when recognized          
The organization offers positive feedback to employees          
I am motivated with appreciation cards          
  1. Rate your responses for the following questions in a scale of 1-5 where 1 represents strongly disagree and 5 represent strongly agree
Questions Strongly Disagree Disagree Neither Agree nor Disagree Agree Strongly Agree
I am satisfied with my job          
The organization offers conducive working environment          
I am able to meet my targets and goals          
I experience real challenges in my job          
I am not well equipped to perform my duties          
I have been positively commended for my performance          
  1. Rate your responses for the following questions in a scale of 1-5 where 1 represents strongly disagree and 5 represent strongly agree
Questions Strongly Disagree Disagree Neutral Agree Strongly Agree
I have adequate information to solve problems in the organization          
I know what problem the organization needs to solve          
I am a creative employee          
I know the process for giving input or new ideas.          
I fully understand the company’s goals and vision.          
I am interested in helping the company to succeed