A Exploring the Nexus of Financial Incentives and Employee Motivation in Financial Sector: A study of Pakistan

Abstract

Abstract

The main objective of this study is to find out the financial incentive factors behind employee motivation, especially in financial institutions in, Pakistan. Salary, housing allowance, and medical insurance were independent variables, and employee motivation was dependent. The sample size was 300, only collected from 190 financial institutions in Pakistan. Questionnaires collect primary data via Google Forms. We used a random sampling method for sample selection. Correlation analysis suggests that all variables have a strong positive correlation (r>0.70)—regression analysis is used to check the effect of financial incentives on employee motivation. The findings suggested that salary, housing allowance, and medical insurance have positive statistical significance (p<0.05) on employee motivation. This research supports that all organizations should focus on financial rewards to employees' motivations for better organizational performance.

      Keywords: financial incentives, financial sector, employee motivation.