Human Resource Management

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Table of Contents Introduction 4 Problem Statement 5 Objectives 7 Literature Review 8 Methodology 10 Reflections and Resources 10 Bibliography 11

The success of an organization or corporation is contingent upon the level of employee motivation. Motivation is critical to the accomplishment of the organization's goals and objectives. It is critical for firms with varied cross-cultural teams to guarantee that their employees are highly engaged. The management is responsible for ensuring that workplace goals and objectives are consistent with the company culture (Vlaev et al., 2019). Setting workplace goals is critical for establishing and monitoring the organization's level of employee motivation (Pang & Lu, 2018). Employee commitment, engagement, and motivation are critical components of an organization's success. Financial remuneration practices play a significant role in motivating employees.

According to many surveys, if an organization does not try to motivate its employees through monetary incentives, the organization is likely to have low performance (Vlaev et al., 2019). Organizations in the United States work diligently to increase employee engagement through monetary and financial pay and awards. Financial and monetary incentives have a stronger effect on employee motivation, according to studies (Pang & Lu, 2018). The United States government has implemented policies aimed at increasing compensation and incentive programs throughout all sectors of the labor market (Vlaev et al., 2019). As with any other firm, the government is attempting to improve employee performance through a variety of financial incentives.

The Federal Reserve System is the United States of America's central bank. It is in responsible of issuing currency to all financial institutions and exercising influence over the economy via monetary policy (Coccia & Igor, 2018). The Federal Reserve System has a number of financial incentives in place to motivate its personnel. Several of these tools include the following: 

· This assists in meeting rental obligations.

· Gratuities are paid to all contract employees. This is a component of their terminal benefits and a token of appreciation for their long-term contribution to the business.

· Employees are eligible for personal loans and medical insurance coverage if they have worked for the bank for an extended length of time.

Numerous researchers have sought to determine the effect of motivation on working institutions. According to research, motivating employees increases their performance and morale by making them feel wanted in the workplace (Coccia & Igor, 2018). However, there is a dearth of research on the effect of financial incentives on employee motivation. Motivation has been discovered to bring workplace commitment. Employees are more committed to where they gain their motivation from. A committed employee tends to work with enthusiasm and effort. Most employees have testified to find motivation from financial incentives. A workplace that offers financial incentives keeps its employees motivated hence they get committed to the organization. Humans have specific needs that need to be fulfilled for effective performance. In the current world, employees value workplace motivation.

Employee motivation increases employee commitment to the workplace. The more committed an employee is, the less likely he is to leave the workplace. Therefore, organizations which motivate their employees are more likely to have a higher employee retention. Due to global competition in finding the best skills and talent for maximum productivity of the workplace, organizations have resulted to finding intrinsic methods of motivating their employees. Most organizations now fully understand the impact of employee motivation on job performance in the workplace. Managers have focused resources on motivating their employees to boost their morale.

Financial motivation is known to be the leading factor to an effective and good performance. Motivation can be realized from different actions and items. While some employees cherish motivation from good deeds and good experience in the workplace, there are other employees who major their motivation on financial incentives (Landry et al., 2017). It is the role of each organization’s management to ensure that its employees are highly motivated through different means. A motivated task force tends to be highly productive and achieve set goals and targets (Landry et al., 2017). As mangers focus on motivating their employees, they should also consider financial incentives as a motivation plan. Currently, the world is facing an economic turmoil, which makes it hard for people to balance their finances in expenditure. This has led to demoralization in the workplace as people tend to spend more than their actual earnings. The global economic status has made it difficult for employees to maintain a balance between work and normal life. Therefore, the managers should come in and increase financial incentives for employees as a means of motivating them.

Most studies have discussed the importance of employee motivation in the productivity of an organization. However, little is known on the relationship between financial incentives and employee motivation. Therefore, the purpose of this study is to close this gap by determining the relationship between financial incentives and employee motivation. This is a case study of government employees in the United States. Is there a relationship between financial incentives and employees’ performance?

The primary aim of this study is to investigate the relationship between financial incentives and employee motivation.

· Empirically determine the impact of financial incentives on the productivity of employees.

· Formulate the recommendations on employee motivation and financial incentives.

Through this research, employers and organizations’ managers will understand the relationship between financial incentives and employee motivation. This study aims at thoroughly discoursing the impact of financial incentives over other forms of motivation. The study also aims at discussing the form of financial incentives that can be used as a means of motivation by employers. The study will also aid in understanding the impact of employee motivation from incentives to workplace productivity and performance.

When the research problem is answered, employers will be able to use financial incentives as the best method of employee motivation. The recommendations from the study will help managers and employers understand the relationship between using financial incentives and the level of employee motivation. Therefore, employers will make more informed decisions.

1, Do financial incentives have any impact on employee motivation?

2. Is there a relationship between financial incentives and employees’ performance?

Previous research has established that the public sector does not operate in a businesslike manner. This has resulted in subpar performance from its employees, who do not receive the same treatment as those working in a corporate context. With the implementation of management services in the American government's public sector, it is critical to consider employee motivation via financial incentives (Coccia & Igor, 2018). The government intends to consider pay for performance and compensation in particular. Historically, monetary prizes and incentives were viewed as bribes and unethical. Nevertheless, other scholars have provided explanations for the effect of financial incentives on employee performance. Financial incentives serve as a foundation for the organization's sustained interaction with its employees.

The majority of enterprises worldwide have adopted performance-based compensation. This involves monetary compensation based on an employee's performance. Employees are monetarily rewarded for their accomplishments. Financial incentives are the most fundamental way for employees to feel motivated, as they increase their morale (Coccia & Igor, 2018). Employees feel understood and respected in the workplace when they receive such financial presents and incentives. As a result, employees are more inclined to stay in their current employment, resulting in lower employee turnover.

Maslow established a hierarchical classification of human needs in 1943. Security, self-actualization, self-esteem, physiological needs, and belongings are the five areas of human wants. According to the professor, a person must first be biologically driven (De Vito et al., 2018). This is to ensure that the mental health and value of the employee are determined. When employees' physiological needs are met, they become content and work toward achieving their own demands (De Vito et al., 2018). The following step is to address security concerns. This practice is repeated until all needs are met. Maslow asserts that unmotivated employees are less likely to be productive. By addressing their requirements, employees remain motivated and perform better.

According to Herzberg, some employment result in employee satisfaction, whereas others result in employee dissatisfaction (De Vito et al., 2018). According to the scholar, employee motivation results in a sense of accomplishment, responsibility, and promotion opportunities. Herzberg states that some factors in the workplace result to job satisfaction and motivate employees. The theory is considered practical in the workplace. According to the scholar, employees find gratification of higher levels such as recognition, advancement, achievement, and responsibility. He also states that the presence of one set of characteristics from the workplace leads to satisfaction at work. Herzberg disregards the fact that a higher level of satisfaction leads to a low level of dissatisfaction. He however states that both are independent phenomena that are not a continuum. According to the scholar, for employers to attain workplace productivity through enhancing motivation, they should focus on both ends of the equation. As they work on the satisfaction, they should also focus on the dissatisfaction.

Herzberg’s two factor theory distinguishes between motivators and hygiene factors. Some of the motivators captioned in this theory include recognition of one’s achievements, opportunities from work, responsibility and involvement in decision making (Novianty & Evita, 2018). Hygiene factor as recorded by Herzberg include salaries, fringe benefits, good pay, pay rises and job security. According to the scholar, lack of the hygiene factors leads to dissatisfaction of employees hence a lower performance. However, their presence in the workplace do not guarantee satisfaction. Eliminating dissatisfaction in the workplace is halfway to creating a conducive environment (Novianty & Evita, 2018). The other task is to increase satisfaction through motivation.

A cross-sectional survey will be used in this investigation. This is due to the fact that the research is defined. The research will collect data in both quantitative and qualitative formats. The study will take place at the Federal Reserve System and other important US government agencies. The study will focus on existing employees at large government agencies. They will represent all other government employees. The Federal Reserve Bank, the Department of Defense, the Department of Education, and the Department of Commerce will provide data for this study. As a result, the sample size will be limited to twenty people employed by the United States government.

This sample size's profile will be characterized in terms of age, degree of education, work experience, and attitude toward motivation. The sample technique employed represents 4% of the entire population.

Secondary data will be collected. Secondary data will be gathered through library resources and surveys completed previously by others. The data collected will be evaluated using a social science-specific statistical software.

This research will take place from March 16th, 2022. The research will be conducted for a period of three months. Therefore, the research will be concluded on June 17th, 2022.

This research will be critical in assisting firms in recognizing the importance of financial incentives in motivating employees. This research will make use of periodicals, magazines, newspapers, and books on employee motivation. Additionally, electronic sources such as the internet and the World Wide Web will be used for research.

Coccia, M., & Igor, B. (2018). Rewards in public administration: a proposed classification. Journal of Social and Administrative Sciences, 5(2), 68-80.

De Vito, L., Brown, A., Bannister, B., Cianci, M., & Mujtaba, B. G. (2018). Employee motivation based on the hierarchy of needs, expectancy and the two-factor theories applied with higher education employees. IJAMEE.

Landry, A. T., Gagné, M., Forest, J., Guerrero, S., Séguin, M., & Papachristopoulos, K. (2017). The relation between financial incentives, motivation, and performance. Journal of personnel Psychology.

Novianty, R. R., & Evita, S. N. (2018). Financial incentives: the impact on employee motivation. Academy of Strategic Management Journal, 17(6), 1-8.

Pang, K., & Lu, C. S. (2018). Organizational motivation, employee job satisfaction and organizational performance: An empirical study of container shipping companies in Taiwan. Maritime Business Review.

Vlaev, I., King, D., Darzi, A., & Dolan, P. (2019). Changing health behaviors using financial incentives: a review from behavioral economics. BMC public health, 19(1), 1-9.