Effects of Motivation Parameters on Employee Performance in a Saudi Construction Company

Abstract

Saudi Arabia is one of the major leading economies in middle east, especially in the construction field. Enhanced extrinsic and intrinsic employee motivation has been widely attached with better employee performance in construction industry. Presently, a trend of demotivation among Saudi construction professionals is markedly noted. However, the matter of employee motivation with relation to employee performance has not been studied in the construction industry context of Saudi Arabia. The primary aim of this research is to determine the effects of motivation parameters on employee performance in the Saudi construction company of Nesma, Madinah branch. The research adopted a mixed research method, where interviews with four of the company’s managers were conducted to identify adopted motivation parameters in the company, and questionnaire surveys were distributed among the sixty-one professional employees of the company to evaluate the effects of different motivators on their levels of work motivation and performance. The data collected was analysed with SPSS v25 by means of descriptive statistics, relative importance index (RII), Multiple Linear Regression and Pearson Correlation to determine the relationship between different extrinsic and intrinsic motivators with employee motivation and employee performance. Data analysis revealed the most effective extrinsic and intrinsic motivators of the company’s employees. Along with a significant and positive relationship between intrinsic and extrinsic motivators with employee performance of (0.484) and (0.385) respectively, and a significant effect of intrinsic motivation on employee performance of (0.554). Backed with the detailed analyses, an employee motivation framework was developed then validated by the company’s experts, indicating its applicability and usefulness for improving their employee motivation and performance. The importance of this study is its uniqueness and novelty to be the first to discuss the issue of employee motivation in Saudi construction industry, in conjunction with its output framework which will help the company’s management to formulate effective policies to increase their employee’s motivation and level of performance, and eventually assist the progress of construction industry in Saudi Arabia.