Assessing The Impact of Monetary and Non-Monetary Incentives on Employee Performance at Good Hope Private and Kabudula Rural Hospitals in Lilongwe, Malawi

William Kampingu and Chrine Hapompwe
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William Kampingu: Graduate School of Business, University of Zambia
Chrine Hapompwe: University of Zambia

African Journal of Commercial Studies, 2026, vol. 7, issue 3

Abstract: This study assessed the impact of monetary and non-monetary incentives on employee performance at Good Hope Private Clinic and Kabudula Rural Hospital in Lilongwe, Malawi. A mixed-methods approach grounded in pragmatism was adopted to provide a comprehensive analysis. Quantitative data were collected through structured questionnaires administered to 171 respondents, while qualitative data were obtained through in-depth interviews with key stakeholders. Purposive and random sampling techniques were applied. Data were analyzed using descriptive statistics and thematic analysis. The findings revealed that both monetary and non-monetary incentives significantly influence employee performance, with their effectiveness moderated by adequacy, fairness, and consistency. Monetary incentives such as salaries and allowances were widely available but perceived as inadequate relative to workload, limiting their motivational impact. In contrast, non-monetary incentives including training, recognition, and supportive work environments demonstrated a strong positive effect on motivation, job satisfaction, and commitment. The study also identified institutional differences, with private facilities offering more structured and diversified incentive systems compared to resource-constrained public facilities. Despite systemic challenges, employee performance and service delivery remained generally positive, suggesting the role of intrinsic motivation. Key barriers included financial constraints, bureaucratic inefficiencies, lack of transparency, and inequities in incentive distribution. The study concludes that a balanced and effectively implemented combination of monetary and non-monetary incentives is critical for enhancing employee performance and recommends strengthening financial rewards, expanding non-monetary incentives, and improving transparency and equity in implementation.

Keywords: Monetary Incentives; Non-Monetary Incentives; Employee Performance; Motivation; Healthcare Sector; Lilongwe; Malawi (search for similar items in EconPapers)
JEL-codes: I18 J33 M52 (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:cwk:ajocsk:2026-77

DOI: 10.59413/ajocs/v7.i3.6

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