Assessing the effectiveness of financial compensation, promotional opportunities and workplace spirituality as employee motivational factors

Abstract

This study aims to determine whether employees are motivated to a greater extent by monetary (financial compensation) or non-monetary (promotion opportunities, workplace spirituality) incentives and, to assess whether biographical influences exist in this regard. The study was undertaken in a large municipality department in eThekweni (Durban), South Africa. A sample of 108 participants was drawn using the cluster sampling technique. In this quantitative, cross-sectional, hypothesis-testing methodology, data was collected using a questionnaire whose psychometric properties of validity and reliability were statistically assessed using Factor Analysis and Cronbach’s Coefficient Alpha. Data was analysed using descriptive and inferential statistics. The results indicate that financial compensation is the main motivating factor for employees in the organisation, followed by workplace spirituality and lastly, promotional opportunities. It is evident that the elements of workplace spirituality have not yet been embraced by this public sector institution and, unhappiness exists with regards to perceptions of unfair and inconsistent implementation of promotional opportunities which are not linked to performance. Biographical influences of gender on financial compensation and, tenure and marital status on promotional opportunities respectively were noted. Recommendations are presented, which when carefully implemented, has the potential to bring about enhanced employee motivation in the organisation.