The Influence of Incentive Systems on Public Servant Performance: A Review of the International Literature

Arthur Merold Sahusilawane ()
Additional contact information
Arthur Merold Sahusilawane: Hasanuddin University

A chapter in Proceedings of the 10th International Conference on Accounting, Management, and Economics (10th ICAME 2025), 2026, pp 1517-1535 from Springer

Abstract: Abstract The performance of public servants is an important issue in realizing effective, accountable, and responsive governance. One of the instruments that is often used to improve performance is the incentive system, both in the form of financial compensation and non-financial awards. However, the effectiveness of incentives in the public sector is still up for debate. International studies show that pay-for-performance can drive short-term productivity but is often unsustainable and potentially distorts behavior. In contrast, non-financial incentives such as recognition, career development, and work flexibility have been shown to more consistently increase employee intrinsic motivation and loyalty. This study uses a systematic literature review approach to various international studies, including from Pakistan, the United Arab Emirates, Saudi Arabia, and the United States. The results of the synthesis show the need for a combination of financial and non-financial incentives that are aligned with the value of public services, evaluation transparency, and ethical leadership. Policy implications emphasize the importance of adaptive and sustainable incentive design, while future research agendas need to explore developing country contexts, longitudinal studies, and integration with the sustainability (ESG) agenda.

Keywords: Incentives; Employee Performance; Public Sector; Motivation; Performance Management (search for similar items in EconPapers)
Date: 2026
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6239-709-5_106

Ordering information: This item can be ordered from
http://www.springer.com/9789462397095

DOI: 10.2991/978-94-6239-709-5_106

Access Statistics for this chapter

More chapters in Advances in Economics, Business and Management Research from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().