Effects of non-monetary incentives on employee performance: a case of selected banks in sunyani municipality

The purpose of the study was to explore the effects of non-monetary incentives on employee performance. The specific objectives of the study were to:identify the various types of non-monetary incentives; find the determinants of employee performance; identify the challenges of non-monetary incentives; and find the effects of non-monetary incentives on employee performance. This was a case study approach was adopted in which purposive and simple random sampling technique was used to select 63 respondents from Zenith bank and Agricultural Development Bank (ADB) in Sunyani municipality. Questionnaire was the instrument for data collection. Data analysis was done using Statistical Package for Social Sciences (SPSS).The results showed that non-monetary incentives have a strong significant positive relationship on employee performance at Zenith bank while the relationship is moderate positive at ADB. The total variation in employee performance at Zenith bank explained by the linear relationship between non-monetary incentives and employee performance was 35.64% while it was 14.3% at ADB. What determined these performances were ability and motivation, declarative knowledge, procedural knowledge, motivation to work, achievement of set goals, staff competence, and set standards. The types of non-monetary incentives discovered were job security, good working condition, participation in goal setting, achievement, staff recognition, job enlargement, incentives that address social needs, improved working conditions, and fringe benefits. However, training and career path-related incentives as well as drive to exercise power is peculiar to Zenith bank and not ADB. This could explain why the employees at Zenith bank perform better than ADB since there is room for initiative and development. Nonetheless, short-term impact, entitlements, wrong things for rewards, delay which discounts any reward, inflexibility of reward systems and demotivators were the identified challenges. Based on the findings of the study, the researcher recommends among things that: rewards should be given to deserved staff as soon as possible since delay discount the reward in both banks. Management of both banks should engage employees in the kind of reward to be given. This will eliminate wrong things for reward. For future research, the study should cover the effects of monetary and non-monetary reward on employee performance in more than two organisations. Again, further studies should look at employee’s perception of monetary and non-monetary reward on their job satisfaction.