The Effects of Financial and Non-Financial Incentives on Staff Performance in Public Institutions: A Study of Kumasi Metropolitan Assembly

ABSTRACT

The main purpose of this study was to examine the effects of financial and nonfinancial incentives on staff performance in public institutions. The detail of this research was conducted in an attempt to demonstrate whether incentives have a great potential to increase public employees’ motivation and work performance. To fulfill the objective of the research as well as to obtain real and reliable data, a research study was conducted at the Kumasi Metropolitan Assembly. A projected sample size of 150 staff was used for the study. However, the study was based on the retrieved questionnaire totaling 136 from respondents. The representative sample approach by Krejeie and Morgan (1970) was adapted for the study. The method of this research study was implemented with a qualitative analysis to investigate the type of incentives that are existing in the organization, and to identify the correlation between the rewarding, recognition and employee work performance. The data analysis proved a significant correlation between incentives in the form of rewards and recognition, and better work performance. Based on the findings of this research study, most of the public employees in the above mentioned organization commented that both financial and non-financial incentives are significantly important to encourage and motivate them for greater work performance. It also indicated that employees keenly cherish financial incentive than non-financial benefits. Meanwhile, the level of utilization of non-financial incentives is extremely poor. Therefore, within the limitations of the research study, it could be concluded that  both  financial  and  non-financial  incentives  have  a potential effect on staff motivation and work performance in the public service organization of the Kumasi Metropolitan Assembly.