MOTIVATION AND EMPLOYEE PERFORMANCE IN GUARANTY TRUST BANK, ABUJA.
ABSTRACT
The continuous inability of businesses to keep their workforce or motivate them to improve their performance is receiving great attention in the area of research because it has continued to threaten the survival of businesses and the economy. The objective of this study is to assess the effect of motivational tools on employee performance in Guaranty Trust Bank (GTB), Abuja. The population of the study is the 405 employees of the three GTB Abuja branches which were considered for the study. The sample size is 201 using the Taro Yamani formula. A total number of 201 copies of the questionnaire were distributed online to the staff of the three GTB branches, 157 were duly filled and submitted. The Regression was used to analyse the data with the help of EViews software. The result shows that incentive has a significant positive effect on the employee performance in GTB Abuja. The result also shows that reward has a significant positive effect on the employee performance in GTB Abuja. More also, the result shows that compensation has a significant positive effect on the employee performance in GTB Abuja. It was discovered that compensation is the most effective tool for solving motivational challenges in GTB Abuja, followed by reward and incentive. Therefore, the study recommends, among others, that the bank should invest in motivational packages to drive motivation and improve its employee’s performance. It also recommends that the management should also deploy incentives and rewards at an equal rate with compensation so as not only to provide the needed alternative but also to get the full benefit of incentives and rewards. Future researches should endeavour to expand the independent variables and the scope.
Keywords: Motivation,Incentive, Reward, Compensation, Employee performance
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
The issues and challenges of employee performance has become topic of debate in recent research, Robescu & Iancu (2020), incentives to improve employee performance has been stressed across the globe. According to Bytyqi 2020), it has been acknowledged that incentives is crucial in improving employee performance, attaining corporate goals and objectives, and one of the top concerns of businesses in the modern business climate.
Researchers, such as Chung (2013) and Robescu & Iancu (2020), are of the consensus that the propended theory of hierarchy of need by Abraham Maslow further strengthens the understanding of employees in proffering solution to challenges facing employees and improving employee performance in these countries as far back as 1943.
Al-Aydi (2017) emphasis that rewards are the ultimate in not just putting people at work but also get the best out of them. In the same vein, Chung (2013) and Al-Madi et al. (2017) opined that compensation improves employee performance. The author stressed that effective rewards and compensatin entails paying great attention to how individuals might be best influenced to meet defined goals.
Since the days of the industrial revolution that began in Great Britain in 1700, the issue of employee performance has taken a front banner. According to Nwachukwu (2019), the ability of an organisation to attain its objective is a function of the drive of the people that work in that organisation.
The author stressed that employee performance remains a function of leadership in Nigeria. Besides tools and training are lacking, the Nigerian employees lack incentives and compensation from the management. On the account of Schwab & Samans (2016), the beginning of the 4th industrial revolution brought competition among companies in hiring the best and retaining employees not only for their performance but also to serve as models to others in improving performance.
In some countries, such as UK and US use compensation, rewards and incentives to improve employee performance have found themselves to labour laws. Some countries, such as Germany and China, do not only demand employee performance but also recognise the impact of rewards and compensation as a means to ensure employee gives the performance expected of them.
Despite this, almost every public and private organisation is dealing with a performance challenge in some way as a result of the global economic crisis. Many researchers and experts believe that following a set of design guidelines for performance management systems will result in high performance (Kaplan and Norton, 2006). The challenges facing employee performance is wide.
Dias et al (2020) observed that the rate at which permanent employment is decreasing in the UK, US, and other developed countries aftermath of the COVID-19 Pandemic is a new great challenge to employee performance. The authors emphasised that COVID-19 Pandemic is restructuring the economy of the world and trying to limit permanent jobs as a result of COVID19 restrictions.
Businesses, all over the world, are constantly seeking a competitive edge as a result of globalisation has become critical for talent retention and performance (Stanley 2012). Regardless of the state of the economy, the goal will always be to create a workplace that is not only interesting but also harmony, where employees want to stay, grow, and contribute their knowledge and experience.
Nigerian businesses, like those in other African countries, are affected by globalisation and recently, COVID-19 Pandemic. Unlike the developed world, the issues of employee performance have been linked to management. Leadership and management opportunities and challenges are constantly changing, and have changed even more dramatically in the last decade as such industrial psychologists and management practitioners are always on the lookout for how developing nations can improve on incentives, rewards and compensation for improving employee performance (Robescu & Iancu (2020).
According to Igbokwe-Ibeto & Egbon (2012) and Rahim & Jam’an (2018), in developing
countries like Nigeria, the issue of employee performance is not receiving adequate attention and employee performance has been low, despite the fact that incentive and performance have assisted countries such as Korea and China to attain development. Rahim & Jam’an (2018) opined that among others, time management and leadership is poor, deployment of incentive and compensation is also poor.
1.2 Statement of the Problem
The continuous inability of businesses to keep their workforce is threatening the survival of businesses and the economy. This has become a great concern not only to the entrepreneurs and the workers but also to the government.
The workers in Nigeria are losing their job every day and the unemployment rate is fast growing since the advent of the COVID-19 pandemic. The rate of unemployment, According National Bureau of Statistics- NBS (2021) has jumped from 8.5% in 2018 to 9.01% in 2020. According to The Gurdian (2020), Nigeria banks sack 7,957 in 9 months.
A sectoral performance report released by NBS (2020) revealed that the 44,664-contract staff on commercial banks’ payrolls at the turn of the year had been reduced to 39,573 (a decrease of 5,091) as of the end of September 2020. Businesses in Nigeria have been known to have a high staff turnover rate and this has a great negative impact on employee performance (Aguinis, 2012). Aguinis (2012) explained that when workers are not sure of their job and also no adequate motivations, financial or non-financial such employees cannot offer his/ her best.
An organisation workforce determines how strong it is. Human resources must be handled with extreme caution, as they are a unique resource that requires special managerial attention and time. (Source: Storey, 2013). As a result, research like this is invaluable in assisting organisations in identifying and maximising ways to motivate employees while reducing employee turnover and underperformance.
Against these problems, this study investigates Motivation and Employee Performance in Guaranty Trust banks (GTB), Abuja.
1.3 Research Questions
Based on the identified problems, the study addressed the following questions
1.To what extent does incentive effect on the employee performance in Guaranty Trust bank,
Abuja?
- Is there any effect of reward on the employee performance in Guaranty Trust bank, Abuja?
- To what level does compensation effect on the employee performance in Guaranty Trust bank, Abuja?
1.4 Research Objectives
The overall objective is to determine the effect of motivation on the employee’s performance using Guaranty Trust bank, Abuja. In specific terms, the study pursued the following specific objectives:
- To determine the effect of incentive on the employee performance in Guaranty Trust bank, Abuja.
- To examine the effect of reward on the employee performance in Guaranty Trust bank, Abuja.
- To access the effect of compensation on the employee performance in Guaranty Trust bank, Abuja.
1.5 Research Hypothesis
Based on the objectives the study set out to achieve, the following hypothesis were formulated and tested to provide answers to the research questions.
Hypothesis One (H01): Incentive does not have a significant effect on the employee performance in Guaranty Trust banks, Abuja
Hypothesis Two (H02): Reward does not have a significant effect on the employee performance in Guaranty Trust banks, Abuja
Hypothesis Three (H03): Compensation does not have a significant effect on the employee performance in Guaranty Trust banks, Abuja.
1.6 Significance of the Study
The importance of this study is not only enormous but also timely at a time when entrepreneurs and government is in search of a solution to keep more people on the job. The following institutions and persons are expected to benefit from this study.
Guaranty Trust Bank, commercial banks, and other businesses: With the findings of this study, commercial banks, particularly Guarantee Trust Bank, and other business will come in term on what actually motivate workers. They will appreciate the role of various motivational tools, such as Incentives, rewards, and compensation, on their workers and effectively use them to keep the workers on the job and achieve the overall objective of their businesses.
Government: The findings of this study will also assist concerned government agencies such as the ministry of labour and productivity, and CBN to appreciate the role of motivation on the survival businesses in Nigeria. It will guild the government in formulating appropriate policies to guild the working place in commercial banks and other businesses and know where to assist the entrepreneur in keeping their workforce to overcome worsen unemployment rate.
Researchers: This study does not only contribute to the existing literature on motivation at the workplace but also bring to the limelight the picture of the present situation as it related to motivation bankers and their performance.
More also, academia and students will find this work as a reference point in carrying out further investigation on the subject or other related matters.
Economists, such as Alfred Smith and Ngozi Okonjo-Iweala, have affirmed the importance of productivity to the economy so also researchers, psychologists, and human resources managers, such as Kleiman (2000), Nwachukwu (2019) and Igbokwe-Ibeto & Egbon (2012), restated that motivation is the key to productivity.
The present economic situation, where Naira is becoming weaker every day has become worrisome to both the citizens and the government. According to Nwachukwu (2019) a weak currency, such as Naira today, is a sign of low productivity or employee performance and over depended on import. More also, the rate of unemployment has jumped from 8.5% in 2018 to 9.01% in 2020 (NBS, 2021). As such, the need to get a proper understanding of motivation as a tool for employee performance has never been so imperative.
The business, particular the private business, holds the key to productivity in the economy and only a motivated employee can perform expectantly (Nwachukwu, 2019). There is also need to stead the tied against loss of job, particularly in our commercial banks. Motivated employee performs his/her job better and no business sacked an employee whose performance is good
1.7 Scope of the Study
The study is limited to investigating the effect of motivation on employee performance. The study population is also restricted to only Guarantee trust bank employees in Abuja.
The choice of Abuja as the study area is to enable the study to gather primary data at a minimal cost, taking proximity advantage of Baze University.
1.8 Limitation of the Study
An area of constraint was the manner towards research work that hindered accessibility to prospective respondents who were to provide the needed data. Another limitation was the difficulty in getting the appropriate number of employees in each branch of Guaranty Trust Bank, Abuja to gather the desired data for my sample size. I also encountered difficulty in accessing the information and documents needed for my research report.
1.9 Definition of Terms
Motivation: It is the process of stimulating employees to take action in order to achieve a set of objectives of an organisation.
Incentive: Incentive is a set of benefits that organisations provide to employees in exchange for their willingness to perform various jobs and tasks within the organisation.
Rewards: Rewards are all forms of financial returns, tangible services, and benefits received by an employee as part of an employment relationship.
Compensation: Compensation is the remuneration received by an employee in exchange for their contribution to the organisation.
Employee Performance: Employee performance is a measurement of how well or how poorly an employee conducts their required job duties and how promptly they meet their deadlines or requirements.
MOTIVATION AND EMPLOYEE PERFORMANCE IN GUARANTY TRUST BANK, ABUJA.