Abstract
In the current competitive business environment, churches faces many challenges particularly getting the qualified employees and retaining them. This study provides an overview of evidence of the effect of incentive on employee performance in the church of Pentecost, Headquarters, Accra, Ghana. The objective of this research was to assess and examine the relationship between incentive and employee performance. The quantitative research approach was used through primary data collected from 75 respondents. Probability sampling has been chosen because the respondents were selected using stratified sampling technique. A structure Likert Scale format questionnaire has been used for data collection.
The data obtained were analyzed using Statistical Packages for Social Science (SPSS) program, descriptive analysis, normality test, reliability test, Multicollinearity test, Person’s Correlation and Multiple Liner Regression were conducted in order to interpret the data. Statistical analysis was performed with the data in order to test the three main research hypotheses. The main findings indicate that there is high and moderate relationship between financial and non-financial incentives on employee performance and has a high positive significant effect incentive schemes on employee performance within the company. To improve employees work performance, the researcher recommended that adopting different kind of incentive schemes, seek and obtain feedback on how employees perceive incentives and develop a sound retention and attraction mechanisms. This study will help the church management to an implementation of incentive schemes system.
Chapter One
1.0 Introduction
Every person strives to fulfil their individual needs, wants, and desires employees must be fulfilled on both a material and non-material level; it is not sufficient for them to be satisfied only on a material level, material refers to his pay, benefits, perks, job stability, and other perks while there are non-material factors like leaves, a great workplace, effective communication among co-workers, and top management all of these factors have a big impact on employee motivation (Smulowitz et al., 2019). Employees are crucial to every organization’s daily operations, especially in industries with intense competition and dynamic environments, as is the case with most theorists it makes sense to understand how employees might be motivated because in most cases, an organization’s employees decide how it will turn out, staff motivating incentive programmes have been identified as the most frequently used strategy by firms when it comes to employee motivation (Vlaev et al., 2019).
The paper’s goals are to encourage positive behaviour, reward productive employees, and pique employee interest. Organisational scientists are very interested in various schemes and techniques that pertain to employee productivity and growth incentives are one of those used throughout workplaces to stimulate employees in order to achieve the desired organization’s overall performance, employee productivity and how it might be augmented are pivotal to the concern of industries and organisations.
Human resources serve as the foundation for a company to attain long-term competitive advantage, organisations must establish strategies to find and keep qualified employees since they operate in a dynamic and competitive business environment any organization’s most valuable asset is its people and in order to generate the most effective and efficient results from these resources, motivation is required. Intrinsic and extrinsic motivation are divided into two categories by researchers (Shabbir and Wisdom, 2020). Mojambo et al., (2020) state that extrinsic drive derives from outside causes like financial incentives and must be replenished frequently to maintain its effectiveness every firm desires its employees would be motivated by intrinsic factors which originate from within the individual.
The definition of “employee productivity” is activity that achieves certain outcomes. Motivating individuals to provide their best effort is more important than ever before in view of the current business climate, particularly in light of a restriction on interest caps (Nizam et al., 2019). Regardless of size firms establish strategies to compete in extremely competitive markets and to boost employee productivity in order to reach their goals and objectives. The Human Resources Management has a responsibility to acquire the best employees and develop retention plans for them, particularly for those in essential positions where it may be challenging to find a replacement due to the technical skills needed (Agyabeng-Mensah et al., 2020). Organisations view their human capital as their most valuable resource, one that can either help them succeed or if poorly managed result in failure and excessive staff turnover incentives are varying incentives given based on differences in the accomplishment of particular results, a stimulant to greater action is another name for it they might be employed to encourage action or more effort (Davidescu et al., 2020).
Anything that can be offered in addition to pay is considered an incentive therefore rewards are sources of work incentive; they could be monetary or non-monetary benefits, employees are given motivation by incentives to increase their production (Arif et al., 2019). Nobody naturally takes action without having a reason for doing so as a result the prospect of a reward is a potent motivator for workers. Yu et al. (2019) opine that along with financial incentives, there are other motivators include job happiness, employment stability, career advancement, and pride in one’s achievements.
In any organisation employees hold a position of strategic importance they are in charge of transforming inputs into useful outputs they should be fairly and appropriately compensated for their labour because they are essential to the production outputs (Yu et al., 2019), it makes sense that employees should be appropriately as well as fairly compensated if they are to be motivated to increase productivity in any organisation whether it be the organised private sector or public sector, based on the Biblical proverb “A labourer deserves his wages” and the realisation that “wages” are the reward for labour, a factor of efficiency.
In order to maximise staff productivity and acquire a competitive edge in the worldwide market through efficient compensation plans the work of management is to make people productive, in managing people in any organisation it is said to be based on productivity, employee productivity, motivation quality and service, the mission statements and goals of organisations frequently reflect this emphasis (Saeed et al., 2019). Sitopu et al., (2021) assert that through incentives businesses can encourage their employees to improve their performance. According to Kyere and Ausloos (2021) researchers have looked into financial and non-financial incentives and how they impact businesses in order to increase productivity. Organizations implement incentive programmes to recognise and compensate excellent employee productivity these packages may be financial or non-financial in nature but their goal is to force the employee to exert more effort in any given activity, employees are compelled by incentives to behave a certain manner on any given day, frequently to the fullest extent possible (Iranmanesh et al., 2019). However Chammas and Hernandez (2019) state that it is important to recognise that incentives are created to maximise employee productivity and assist in keeping the best and most talented employees on staff. To acquire the desired outcome from their employees organisations must make sure they apply the proper incentives, due to their many advantages and strong potential to inspire employees to give their all to any given assignment, incentives are an essential factor in driving employee motivation and productivity (Mojambo et al., 2020). Younger workers respond more drastically and favourably with stronger intrinsic motivation when paid on plans with higher incentive proportions, the impact of financial incentives on those working in the church of Pentecost, Accra, Ghana. These staffs received financial benefits such profit sharing schemes, premium pay, and cash bonuses, which increased their motivation to work.
Variable pay, asset loans, paid paternity and maternity leave, lunch allowances, and travel insurance were among the several incentives and advantages previously offered. Although training is not frequently used, employers are prepared to make accommodations for self-initiated training. The purpose of this study is to identify the sorts of incentives employed by employers in the church of Pentecost Headquarters and determine if they have a substantial impact on employee and firm productivity.
Every firm is concerned with how to increase productivity by employing the correct kind of incentive to motivate employees (Kalogiannidis, 2020). The impact of financial and non-financial incentives thus becomes a hot topic in human resource management many theoretical ideas, management principles and practices have evolved in response to these difficulties but most academics believe that more conceptual and empirical research is needed to demonstrate the relationship between financial and non-financial incentives and staff productivity. Nevertheless, some studies have shown that financial incentives are easily viewed as having a high instrumental value that makes exerting additional effort worthwhile. The topic is still complicated despite the expanding quantity of literature and empirical research on the impact of financial and non-financial incentives on workers’ productivity. Therefore, it is necessary to do research on how financial and non-financial incentives affect employee productivity at the Church of Pentecost’s Accra, Ghana, headquarters.
The key resource of a company’s competitive edge is now thought to be its human resources. Therefore, an organisation’s success or even survival is increasingly determined by how it treats its employees (Kyere and Ausloos, 2021). Javed et al., (2020) opine that organisations are recognising the need to strike an appropriate balance between employee contribution to the company and organisation contribution to the employee in order to ensure that individuals are treated equitably. The basic goal of firm incentives is to draw in and keep top performers to inspire and satisfy them and to get the best out of them so that owners can pursue their interests by obtaining greater results and higher quality (Paais and Pattiruhu, 2020). Organisations frequently utilise incentives to motivate their staff to put in hard work.
One of the key elements that motivate employees to work hard and effectively is the provision of incentives it is because incentives and reward systems encourage employees to work more effectively in order to further the institution’s objectives, the lack of appropriate incentives may have a detrimental impact on an employee’s performance and productivity, which reduces the likelihood that the institution will achieve its ambitious goals (Saeed et al., 2019; Li et al., 2020).
Any organisation’s reward system is essential and crucial, and management regularly and yearly reviews it in depth the advantages that a company must provide to its employees as remuneration include incentives, pay, bonuses, and other benefits, the workplace environment has evolved in the twenty-first century; employees now expect additional advantages in addition to monetary compensation (Krekel et al., 2019). Employees who are happy with their jobs and pay are more motivated and put in more effort because they understand that they will be rewarded once they reach a certain level of goals (Mojambo et al., 2020). Kalogiannidis, (2020) assert that employee demotivation caused by unhappiness with the job and incentives increases absenteeism and the rate of job turnover in the company.
Organisations today must operate in a highly competitive climate that is both dynamic and fast-paced if they are to stay relevant in the market and meet the ever-changing demands of their customers. Internal procedures, customer satisfaction, interpersonal relationships, and the organisation’s innovation and improvement efforts are all expected to improve as a result of incentives all of which ought to have a long-term impact on business performance (Subramaniam et al., 2020).
Incentive systems are paid pay that is based on performance and is intended to increase employee engagement and productivity they are made to encourage human efforts to advance both the present and future objectives, organisations utilise incentives to achieve certain objectives, promote a particular behaviour, and foster a sense of teamwork in preparation for group prizes (Xie et al., 2019). Although incentive schemes are not always effective they are likely to contribute to improving individual effort or performance in situations where the circumstances and the scheme are favourable (Tan et al., 2019). Adnan Bataineh, (2019) state that the first step in motivation is realising that a person has wants or expectations they want to fulfil these requirements act as a catalyst for achieving the intended outcomes, a sense of achievement or satisfaction that results from achieving the desired goals eventually boosts performance and productivity as a result employee needs to achieve the intended results in terms of employee satisfaction, motivation, and performance affect company incentives.
Here incentives are mostly used to motivate staff members even though they may take on numerous forms well-designed employee incentives can have a positive and significant impact on the effectiveness, efficiency and calibre of business operations (Anwar and Abdullah, 2021). Deserranno, (2019) assert that on the other hand poorly designed schemes may result in severe harm. Incentive plans must be clear so that employees who may be impacted by them can comprehend how the calculations were made therefore the system shouldn’t be unduly complicated and should have the maximum number of objective criteria and the minimum number of subjective variables. The quality of the workplace can be greatly influenced by employee perception by choosing, organising and interpreting data from the environment, people employ perception to make sense of their surroundings (Jackson et al., 2020).
Employee performance is defined as the product, achievement of the task, and outcomes obtained and are associated with the strategic objectives of the church, client happiness, and financial contributions (Hendri, 2019). Managing performance entails taking deliberate steps to enhance organisational, team, and individual performance. The church of Pentecost Headquarters, Accra, Ghana needs to keep good human resources on staff at all levels that can both plan and carry out the strategy if it is to survive this situation. By luring and keeping talented employees, effective incentive programmes can aid a company in achieving its goals. The church of Pentecost can enhance this potential to retain and attract staff members in order to receive the greatest possible contribution from them.
Financial and non-financial incentives are the instruments to motivate the employees to be engaged in improved performance in their organisation (Baah et al., 2021). This study set out to assess the impact of incentive on employees’ performance in the church of Pentecost.
1.1 Statement of Problem
In every organisation human resources are the most valuable assets one of the core competencies in organisation is depending on the acquired human resources, one of the most important tools at the hand of any business management to attract and retain competent human resource is administering effective incentive schemes. Well-designed and implemented incentive schemes can significantly enhance employee performance through improving their morale, provision of job security and motivation among others.
The study on employee motivation states that motivational incentives can produce better employee performance. In essence, few of these studies are supported by an explanation of how incentives in work place affect employee performance.
Incentives are important in motivating and satisfying the need of employees to be productive and perform well, employees leave the company because employees are not motivated enough and low performance becomes the result of the company.
In today’s competitive organizational world, having a satisfied workforce to fulfil the organisation’s mission or goal is vital. As of every organisation the company’s survival in a competitive banking, industry is by having a satisfied workforce. One of the means to create and retain a satisfied workforce is through installing attractive, fair and equitable incentive system or practices.
One of the problems facing the church of Pentecost, Headquarters, Accra, Ghana currently is lack of employee motivation system where it has affected the church’s profitability and competency compared with other similar churches. The church has given less attention and as a result has less understanding of the effect of incentive on employees’ performance. Dissatisfaction of staff has made the bank less productive that has decreased the service delivery of the church. Human resource is one of the key organisational factors for business success. Individual effectiveness usually reflects his/her knowledge, abilities, skills, and characteristics. In order to reach the human resource ultimate goals of any organisation employees must be highly motivated with this understanding the researcher investigates the impact of motivation on employees’ performance. Competent employees are always propose with competitive remuneration schemes, to recognise the relationship of job performance effectiveness the employee’s motivation is vital to human resources management. Improving organisational productivity (performance) has become one of the overriding goals of human resource management as performance is the synergetic sum total of the performance of all employees in the organisation. This being the fact, employee performance has to be closely planned, coached, and appraised to ensure that it is in line with the interests of organisations. However, it seems that performance is not given the proper attention in the church of Pentecost and is exercised periodically more as a usual practice than as a tool of motivation because of which various administrative and developmental decisions are taken.
Incentive influenced an employee’s performance in different ways; this study investigates the effect of incentive on employees’ performance at the church of Pentecost, Headquarters, Accra, Ghana.
1.2 Objective of Study
This part provides the general and specific objectives of the study.
1.3 General Objective
The main objective of the study is to investigate the effect of incentive on employees’
Performance at the Church of Pentecost
1.4 Specific Objectives
Based on the general objective the followings are specific objective;
- To examine the relationship between financial incentive schemes and employee performance
- To determine the relationship between non-financial incentive schemes on employee performance
- To assess the employees perception towards the incentive schemes practices and employee performance
1.5 Research Hypothesis
Hypothesis is a tentative explanation that accounts for a set of facts and can be tested by further investigation. In order to address the objectives of the study and deal with the research questions, the following hypotheses were formulated.
- H1: There is a positive and significant relationship between financial incentives and employee performance.
- H2: There is a positive and significant relationship between non-financial incentives and employee performance.
- H3: The perception of incentive schemes has a significant and positive influence on employee performance.
1.6 Significance of the Study
The study is useful in the following regards.
This research is important for professionals and managers to understand the effect of incentive on employees’ performance and specifically is important for the church of Pentecost, Headquarters, Accra, Ghana to increase employee productivity and the church’s profitability
- The study may serve as a reference material for both academicians and practitioners.
- The study has significance from the perspective of all employees by increasing motivation level.
- The study creates good understanding of the current impact of motivation and on performance.
- The study creates good image for the church of Pentecost by designing effective motivational police in order to motivate and perform better.
- The study may initiate other interested researchers to carry out more extensive studies in the area.
1.7 Scope of the Study
If the study had not focused only the headquarters of the church of Pentecost, it would have obtained a lot of information that might be useful for all Pentecostal and Catholic churches in Accra Ghana. However, it is impractical or unmanageable to include all the Ghanaian churches because of resource limitations. The Church of Pentecost has several branches in Ghana from these 29 of the Branches is in Accra. This study selects the Headquarters located in Accra which is the capital city of Ghana. This study covered the period between December 2022 and January 2023, owing to the fact that the current times have seen the organizational incentive systems can help in improving employee performance, especially the financial and non- financial incentive scheme. The conceptual framework of the study specifies the nature of the study, which is depicted in the diagrammatic form. According to the model, dependent variable is employee performance and the independent variables are incentive schemes (financial and nonfinancial). Data collected from the questionnaires were carefully analysed, summarised and interpreted by using both descriptive and inferential statistics. The descriptive statistics include frequencies, valid percentages, means and standard deviation.
These were used to present the demographic characteristics of the respondents and incentive schemes practices part of the questionnaires in a summarised manner. Inferential statistics was computed and used to come up with conclusion on how representative was the sample to tale about the relations between financial and non-financial incentives (independent variables) on employee performance (dependent variable) were made by using Pearson product- Moment Correlation Coefficient and Multiple regression analysis for the other two objectives that is determining the relationship between financial and non-financial incentives with employee performance and the effect of incentive schemes on employee performance. Hypothesis testing was conducted at 90% confidence intervals and eventually, findings, conclusions and recommendations were drawn from the entire population.
1.8 Organisation of the Paper
The paper consists of five chapters. The first chapter introduces the introductions of the study that includes background of the study and the organisation, definition of term and concept, statement of the Problems, research question, objectives of the study, significance of the study, scope of the study, and organization of the paper. The second chapter is devoted to the review of the related literature. It further presents the theoretical concepts, empirical literature studies, the conceptual framework and the hypothesis of the study. The third chapters focus on research design and methodology while the fourth chapter analysis of the data collected. The fifth chapter that is the closing chapter focuses on providing conclusions and recommendations based on the findings.
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