WSEAS Transactions on Business and Economics
Print ISSN: 1109-9526, E-ISSN: 2224-2899
Volume 20, 2023
Examining the Implementation of Financial Incentives using the Framework of Monetary and Non-Monetary Incentives to Improve Employee Innovation Performance Case Study: Jordanian Islamic Banks
Authors: Sari Sulaiman Malahim, Waleed Kalf Al-Zoubi, Sulaiman R. Weshah, Husam Mahmmud Jamil Abu Hamour, Aiman Mahmoud Abu Hamour
Abstract: Jordan's banking industry has expanded significantly, and various Jordanian banks are now more competitive than ever. Therefore, all Jordanian banks strive to gain a greater competitive edge by luring more clients. In this context, Jordanian Islamic banks sought to strengthen their competitive advantage by offering high-quality banking services, luring highly experienced employees, and equipping them with a capable system of incentives and rewards to boost their performance. It has been suggested that monetary and non-monetary incentives could be used to address these issues. In order to evaluate the effects of incentives on the employees who worked in the Islamic Bank's branches in Jordan, the study set out to conduct a systematic review and analysis. Partial least squares (PLS) analysis was used to gather data that had been gathered through a survey method using questionnaires that were completed by 73 respondents. Simple linear regression (SLR) was used to assess how incentives affect performance. The results of the study revealed a statistically significant positive effect of monetary and non-monetary incentives on performance. In order to implement a fair incentive policy that has an impact on raising employee performance, and added value Islamic banks need to review their system of moral and financial rewards. Giving bonuses, recognizing outstanding employees, providing the ideal employee with monthly annual health benefits, and expressing gratitude and expressing gratitude and appreciation to others. Future knowledge in the field of management accounting will benefit from this study's contribution, which focuses on the existence of the principles based on the performance system, a distinctive and original compensation scheme that has unmistakably aided bank expansion.
Keywords: Financial Incentives, Monetary Incentives, Non-Monetary Incentives, Employee Performance, Islamic Bank, Added Value
DOI: 10.37394/23207.2023.20.60WSEAS Transactions on Business and Economics, ISSN / E-ISSN: 1109-9526 / 2224-2899, Volume 20, 2023, Art. #60