The Effect of Non-Financial Incentives on Staff Productivity: The Case of Flintstone Engineering
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Date
2021-06
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Addis Ababa University
Abstract
Employees are the main force behind an organizations success and they need to be motivated
through various means including financial and non-financial incentive mechanisms. However,
the effect of such incentive packages on the productivity of employees has not well documented
and limited information on non-financial incentive approaches. The purpose of this study was to
assess the effect of non-financial incentives on employees productivity in Flintstone engineering.
The study adopted an explanatory and descriptive research design. Out of 215 target population
a sample size of 140 was taken using Yemani’s statistical formula and responses of 140
employees were analyzed. Statistical Package for Social Sciences (SPSS) Version 20 was used to
analyze data. The validity of the instrument was checked and internal consistency of the
instrument was measured using Cronbach Alpha. Hypotheses were established to verify the
effect of all the independent variables (recognition, promotion, performance feedback and
working condition) on the dependent variable (Employees’ productivity). The finding indicated
that 47.4% predictability in employee productivity is described by the independent variables
(recognition, promotion, performance feedback and working condition). The findings indicated
that recognition, promotion, performance feedback and working condition have significant
relationship with employee productivity. The results prove that Non-Financial incentives are
important predictors that have an effect on employee productivity. The company must be able to
improve and pay more attention to the provision of non-financial incentives especially promotion
and working condition in providing the variables in a fair manner in accordance with employee
performance contributions in order to improve, employee productivity
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Keywords
Productivity, Non-Financial incentives, Recognition