Examining the impact of incentives on employee’s performance: A case study of the Ghana revenue authority in the Northern Region

Abstract

This study employed a quantitative research design, converting responses into numerical values to mitigate potential biases arising from subjective interpretation. It focuses on the Northern Area offices of the Ghana Revenue Authority (GRA). A total of 120 staff members were considered for the study. A sample size of 92 staff members was selected using a simple random sampling technique. Data was collected through a questionnaire employing a five-point Likert scale. The instrument's reliability was assessed with Cronbach's Alpha (α = 0.784), signifying high reliability. The study's results show a high level of significance (Sig=0.000) for both financial and non-financial incentives, indicating their statistical significance in predicting employee performance. Regression analysis revealed that incentives significantly impact employee performance (Beta = 18.04, p = 0.037). The coefficient (a = 0.672) suggests a strong positive linear relationship, with 32.3% of variance explained by incentives. The adjusted R square (0.641) indicates a robust relationship considering the number of predictors. GRA should offer a mix of both financial and non-financial incentives, tailored to the specific needs and preferences of employees.