The relationship between performance based Incentive pay and employee motivation in Barclays Bank of Kenya branches in Nairobi city

Abstract

ABSTRACT Business organizations are facing significant challenges on internal and external work environment, so organizations cannot maintain institutional performance without providing incentives to their employees based on their efficient and effective work. Linking pay to performance is something employers increasingly seek to achieve. It is believed that remuneration strategy accounts for one of the greatest investments an organization makes. Although a fair wage is the cornerstone of the contractual and implied agreements between employees and employers, the underlying assumption is that money can directly influence behaviour. Many employees and managers believe that simply increasing what people are paid will make them more motivated, productive and loyal. The influence of remuneration strategy is an important ingredient in every organization and that employee performance is a critical issue for many businesses, because of the need to attract, motivate and retain the right talent pool for a business to succeed. The objective of the study was to examine the relationship between performances based incentive pay and employee motivation in Barclays bank of Kenya branches within Nairobi City. This study adopted a descriptive survey design. This study targeted 50 managers in the branches in Nairobi City. Primary data was collected using a semistructured questionnaire which had both open and close-ended questions. The questionnaire was administered through drop and pick method to avoid interruptions of the employees’ busy schedule. Data collected was analyzed by both descriptive techniques like frequencies and measures of central tendency like mean and standard deviation for the quantitative data while content analysis used for qualitative data. The information was displayed by use of frequency tables and pie charts. The study findings indicated that Barclay Bank offered performance based incentive pay. Pay influenced employee motivation of the bank to a great extent and the benefits were related to performance. Remuneration and health was motivation programme that they benefited most in the bank. The study recommends that organizations should motivate staff by offering small tokens of appreciation and acknowledgement, enhanced job security, new opportunities for promotions, better performance appraisals, development and use of new skills and competencies. It further recommends that the financial rewards need to be of a reasonably significant amount to be an effective motivator.