The Role of Financial Incentives in Employee’s Job Motivation, Satisfaction, Performance, and Turnover: Evidence from Pakistan

Muneeb Ahmad, Zhou Maochun and Abdul Rehman
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Muneeb Ahmad: College of Business Administration, Liaoning Technical University, China.
Zhou Maochun: College of Business Administration, Liaoning Technical University, China.
Abdul Rehman: School of Business, Liaoning Technical University, China.

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Abstract: This study explores the impact of best financial incentives on employee's job motivation, performance satisfaction, and turnover. Theoretically speaking when organizations pay good financial benefits to their employees, they are more motivated, satisfied, and more committed with the organization. Our sample consists of Pakistani, telecommunication industry, textile industry. We collected the data of 600 responses out of 1000 questionnaire. By utilizing the received responses, we run the path analysis and found that all the stated variables are positively significant except job turnover. We found that financial reward can positively contribute to keeping the employee motivated and satisfied. However financial rewards discourage the employee turnover intention which cannot save organizational financial cost but also help to retain human capital as well.

Date: 2019-06-19
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Published in Asian Basic and Applied Research Journal, 2019, 1 (1), pp.39-45

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05305789

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