Abstract:
This study undertook an examination of the potential role that money
plays on employee motivation and performance. The aim of this
research is to find the impact of financial compensation on employee
motivation and performance. In the data gathering phase, surveys were
conducted with a sample of employees in the financial services industry
in conjunction with two structured interviews held with
Branch Managers from two banks. Based on the results of the surveys
and the two structured interviews, this research concludes with an
evaluation of the importance of money on employee motivation and
performance to a certain extent, while at the same time recognizing that
money cannot be the only motivator. Money can be effective as a
motivator to some extent, but this will only happen if it is
perceived as a reasonably certain means of achieving a goal, there has
link between effort and reward. This is why money is such an important
factor in attracting people to join an organization and, to a lesser extent,
in dissuading them from leaving. It is sometimes easier for people to
find out what they are worth by making the effort to join another
company than for them to learn how their pay is likely to progress in
relation to their performance within the organization.
