Effect of Nonfinancial Incentives on Efficiency Performance in The Nigeria Public Sector

Abstract

The strategies of deploying nonfinancial incentives to bring the best performance out of employees of organizations have received global attention. It was however discovered that the sensitive sector as the public sector had not been thoroughly engaged to know why public workers show no enthusiasm in their productivity. This study, therefore, examined the effect of nonfinancial incentives on efficiency performance in the Nigeria public sector with a specific focus on their use of recognition and award, training and development, and flexible work model. A survey research design was used in the study. The population of the study is 2,880 employees of Federal Teaching hospital Ido Ekiti, Ekiti State, Nigeria as of 1^st January, 2022. The systematic sampling technique was used to select 360 employees as the study's sample. Data were collected from primary sources using a well-structured questionnaire. The reliability and validity of the research instrument were tested using the Cronbach Alpha reliability test. Data collected was analyzed using descriptive statistics and regression. The results revealed that recognition and award, training and development, and a flexible work model exhibited a significantly positive effect on efficiency performance. The study, therefore concluded that the efficiency performance of employees in the Nigeria public sector will increase at the instant of nonfinancial incentives. It is recommended that government should embrace nonfinancial incentives as bait to improve the efficiency performance of Nigeria public servants.

Keywords: Recognition and Award, Training and Development, Flexible Work Model.

JEL Classification Codes: A13, G14, B10.

DOI: 10.7176/RJFA/14-2-05

Publication date: January 31^st 2023