The Impact of Financial Incentives on Employees Commitment

Saba Saleem


This study investigated the impact of financial incentives and rewards on employee’s commitment. A total of 100 employees from the Private Sector Banks, Public Sector Banks, Islamic Banks and Microfinance Banks at Bahawalpur that includes 71 male and 29 female. Random sampling was used as a sampling design and questionnaire in Likert form was used to gather data from the participants. Linear regression was used to investigate the relationship between financial incentives and employee’s commitment. Results however revealed positive and significant association between financial incentives and employee commitment and increase in financial incentives such as promotion and bonuses enhanced employee commitment which increases the employee’s performance and reduces turnover and employees can only be loyal when their wants and desires are satisfied.

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ISSN (Paper)2222-1905 ISSN (Online)2222-2839

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