IMPACT OF NON-FINANCIAL REWARDS ON EMPLOYEES’ MOTIVATION AND THEIR TURNOVER INTENTION IN THE CONTEXT OF NEPALESE DEVELOPMENT BANK

Abstract

The purpose of this study was to investigate the effect of non-financial incentive scheme on employees’ motivation and their turnover intention. It aimed to examine perception of the employees of the Nepalese development banks regarding the nonfinancial rewards as regards employee motivation in the sample banks. On descriptive as well as explanatory research design which used 100 samples of bank employees selected by using the stratified random sampling method as the primary source of data, the study examined the effect of Job Security, Challenging Work, Performance Recognition, Flexibility of the work, and Leave Provisions on employees’ motivation. Among the major findings, current non-financial incentives practiced in the sampled Nepalese banks were not very satisfactory. However, the results of regression analysis showed job security, leave provisions, challenging work, flexibility of work condition, and performance recognition as being the significant predictors of employee motivation. As such, the study has suggested reviewing the development bank’s nonfinancial reward practices which can play instrumental role to raise current motivation level of their employees.