EMPLOYEE MOTIVATION THROUGH FINANCIAL AND NON-FINANCIAL INCENTIVES: INSIGHTS FROM A NIGERIAN BUSINESS PROCESS OUTSOURCING FIRM

Abstract

Employees form the centre piece of the organization, and to thrive in this
competitive world of business, the motivation of employees should be paramount, as it aids
the performance of the employees. The study was conducted in a business process
outsourcing firm that combines global manpower outsourcing and call centre operations for
two telecommunication companies. The study examined the relationship between financial
incentives and nonfinancial incentives, as it relates to employee performance and
organizational profitability. The Herzberg’s Two Factor and Reserve Army of Labour theory
were utilized in this study. Both quantitative and qualitative techniques were used. A
multistage sampling procedure consisting of purposive, stratified, and simple random
sampling was adopted. Two hundred and fifty-two questionnaires and eight in-depth
interviews were administered to elicit information. The quantitative data were analysed via
the Statistical Package for Social Sciences (SPSS), and the qualitative data were analysed.
Employees agreed that financial motivation is capable of spurring them to better perform and
that they worked to their maximum creative potential when their financial needs were met.
Nonfinancial incentives such as medical insurance, housing allowances, educational
assistance, involvement in decision making would provide a sense of fulfilment to employees
and enhance their performance.