MONETARY INCENTIVES AND EMPLOYEE PERFORMANCE

MONETARY INCENTIVES AND EMPLOYEE PERFORMANCE

ABSTRACT

The goal of the study was to determine how employee performance at Barclays Bank related to financial incentives. The goals of the study were to determine the level of employee performance, the connection between financial incentives and employee performance, and the financial incentives utilized by Barclays Bank.

The aforementioned goals were accomplished by choosing respondents using stratified sampling and simple random sampling. A sample size of 75 respondents was selected with the assumption that 50% of each stratum’s respondents would be included in the sample.

The appropriate design which was employed to collect data was descriptive research design because it describes both qualitatively and statistically.

According to the report, the Bank provides a variety of incentives, including wages, allowances, bonuses, air time, and lunch expenses. Findings of employee performance showed that they have improved, as shown by reports of 2008–2010 objective accomplishments. A substantial, positive connection of 0.99 existed between financial incentives and employee performance.

The researcher made a number of recommendations, including raising pay to help employees meet their financial obligations and increase their commitment to the bank, properly implementing employee development programs like training and promotions, and improving working conditions by, for example, easing supervisors’ strict attitudes toward lower-level employees and making punishments proportionate to errors committed. Employee complaints ought to receive a response.

CHAPTER ONE

1.1 BACK GROUND TO THE STUDY

The researcher made a number of recommendations, including raising pay to help employees meet their financial obligations and increase their commitment to the bank, properly implementing employee development programs like training and promotions, and improving working conditions by, for example, easing supervisors’ strict attitudes toward lower-level employees and making punishments proportionate to errors committed. Employee complaints ought to receive a response. Barclays Bank offers financial incentives in the form of salaries, wages, allowances, and bonuses. Salaries are a monthly payment made to bank workers and are determined by factors such as position, experience, and educational attainment. Contrarily, wages are paid to casual workers and are determined by the task assigned to each employee as well as occasionally by the number of days worked. Airtime, medical expenses, and even transportation expenses are all included in Barclays Bank’s allowances.

Bonuses are extra payments made to employees who meet their goals on time, and they typically come on top of their regular compensation. 2008’s Company magazine. Nonetheless, Barclays’ financial incentive program is marked by delays in delivering employees’ salary, bonuses, and allowances—sometimes by up to three months (Banks quarterly report 2007).

Due to the lack of further compensation for the more productive staff, this has demotivated hardworking individuals. Due to employee tardiness, high absenteeism, and high labor turnover, performance has also been impacted. Employees are no longer performing according to the bank’s standards. (Banque’s 2007 quarterly report).

1.2 STATEMENT OF THE PROBLEM

Barclays Bank has made an effort to motivate its employees by offering financial incentives like allowances, bonuses, and salary and wage payments in order to encourage them to work toward the established targets. However, the Bank’s poor incentive system, such as payment delays, has resulted in a demotivated workforce, poor employee performance, and the failure of the Bank to meet the majority of its targets on schedule.

1.3 PURPOSE OF THE STUDY

The purpose of the study was to establish a relationship between the   monetary incentives and employee performance

1.4  OBJECTIVES OF THE STUDY

1) To determine the financial rewards that Barclays Bank uses
2) To establish level of employee performance in Barclays Bank.
3) To clarify the connection between the

1.5 RESEARCH QUESTIONS

1) What are the monetary incentives applied in Barclays Bank?
2) How well are Barclays Bank employees performing?
3) How do financial incentives and employee performance relate to one another?

1.6  SCOPE OF THE STUDY

1.6.1 Area of application
The study was conducted at the Barclays Bank headquarters on Jinja Road since it provided the required data.
1.6.2 Range of content
The study’s primary independent and dependent variables were financial incentives and employee performance.
1.6.3 Duration
The researcher looked at documents from the years 2008 to 2011 that dealt with financial incentives and staff performance levels at Barclays Bank.

1.7 SIGNIFICANCE OF THE STUDY

The study helped the firms better grasp the link between financial incentives and worker performance.
Future scholars looking at financial incentives as a sort of performance reward will find the research to be helpful.
The purpose of the study was to give the researcher additional understanding about financial incentives, employee performance in banks, and research methods.