The Effect of Financial and Non-Financial Incentives on Staff Productivity

This study examines the relationship between financial incentives, non-financial incentives, and staff productivity within organisational contexts. Using a quantitative research design, data were collected from 105 employees through a structured questionnaire. The findings show that both financial incentives (r = 0.563, p < 0.05) and non-financial incentives (r = 0.525, p < 0.05) have moderate positive correlations with staff productivity. Financial incentives recorded a high mean score of 3.72 (SD = 0.935), non-financial incentives had a moderate mean of 3.64 (SD = 0.689), and staff productivity showed the highest mean of 3.75 (SD = 0.81). These results indicate that while employees value monetary rewards, non-monetary benefits such as recognition, career development, and supportive work environments also play crucial roles in enhancing productivity. The study highlights the importance of implementing a balanced incentive system that integrates both extrinsic and intrinsic motivators to optimise employee performance and organisational effectiveness. Practical implications include the need for transparent, performance-based financial rewards and strengthened non-financial recognition programmes, particularly in resource-constrained organisations.