THE IMPACT OF FINANCIAL AND NON-FINANCIAL MOTIVATION ON JOB PERFORMANCE

Nicoleta Valentina Florea (), Gabriel Croitoru (), Daria Florea () and Mihai Bogdan Croitoru ()
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Nicoleta Valentina Florea: University of Valahia, Targoviste, Romania
Gabriel Croitoru: University of Valahia, Targoviste, Romania
Daria Florea: University of Valahia, Targoviste, Romania
Mihai Bogdan Croitoru: University of Valahia, Targoviste, Romania

European Journal of Accounting, Finance & Business, 2025, vol. 13, issue 1, 30-50

Abstract: Employee motivation is a critical determinant of job performance, influencing productivity, job satisfaction, and organizational success. This study examines the relative impact of financial and non-financial motivation on employee performance, using Herzberg's Two-Factor Theory and Self-Determination Theory as theoretical frameworks. While financial incentives such as salaries, bonuses, and benefits drive short-term productivity, non-financial motivators - including career development opportunities, job security, recognition, and a supportive work environment - have a more significant and lasting impact on employee engagement and commitment. Using a quantitative methodology, this research surveyed 112 employees from diverse industries in the South Muntenia region of Romania, analyzing data through Partial Least Squares Structural Equation Modeling (PLS-SEM). The results indicate that while financial motivation positively influences performance, non-financial motivators exert a stronger effect, fostering sustained engagement and long-term organizational commitment. These findings highlight the necessity of an integrated motivational strategy that balances financial rewards with intrinsic motivational drivers to enhance overall workforce performance.

Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:scm:ejafbu:v:13:y:2025:i:1:p:30-50

DOI: 10.4316/EJAFB.2025.13104

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