The Effect of Financial and Non-financial Incentives on Job Satisfaction: An Examination of Food Chain Premises in Turkey

Ali Erbasi,Tugay Arat

doi:10.5539/ibr.v5n10p136

Abstract

The purpose of this study is to examine the effect of financial and non-financial incentives on job satisfaction, which are used in food chain premises; and to indicate the difference of employee attitudes related to job satisfaction and incentives on some demographical variables. The questionnaires prepared for this purpose are applied to eleven employees at food premises, which are currently working in food sector in Central Anatolian Region in Turkey. The data obtained from the research are analyzed via several techniques by using SPSS 15.0 program. According to the results of the analysis, a significant relation is observed between the financial and non-financial incentives and the job satisfaction of employees. When these relations are compared, the result is that the attitudes towards financial incentives have a stronger effect on job satisfaction than the attitudes towards non-financial incentives. Besides, the differences among some demographical variables (union membership, gender, income level) and the attitudes towards these incentives and job satisfaction levels are tested. This research plays an important role to provide significant data for strategical administrative institutions of food chain premises in terms of financial and non-financial incentives, job satisfaction and some demographical characteristics of the employees.

Highlights

The premises are focused on the motivational elements to increase the productivity of employees
It is very common at such premises that there are often financial and non-financial incentive applications in order to award the employees with a high performance level and to encourage the ones with lower performance levels for higher performance
The purpose is to examine the effect of financial and non-financial incentives on job satisfaction, which are used in food chain premises and to indicate the difference of employee attitudes related to job satisfaction and incentives on some demographical variables

Summary

Introduction

The premises are focused on the motivational elements to increase the productivity of employees. One of the several methods used to increase the motivation of employees is the incentive application. It is very common at such premises that there are often financial and non-financial incentive applications in order to award the employees with a high performance level and to encourage the ones with lower performance levels for higher performance. The main purpose of such applications is to establish a fair management structure within the premise; to contribute to the motivations of employees as a social being and to increase their productivity and efficacy by enhancing their job satisfaction levels. According to Naldöken et al (2011: 286), the financial incentives provided for employees are listed as payment raise, premiums, profit share, economic awards, payment packages, etc

Objectives

Methods

Results

Conclusion