Influence of Non-Financial Compensation on the Performance of Employees in Public Organizations in Tanzania

Abstract

There is an inconsistency amongst scholars in regard to the influence of non-financial compensation on the performance of employees in public organizations. Some agree that it positively affects employees to work and stay in the organization while others oppose that they do not motivate them. This study aimed to examine the influence of non-financial compensation on the performance of employees in public organizations in Tanzania. The study was guided by three specific objectives: - exploring non-financial compensations to employees in public organizations; finding out the relationship between non-financial compensations and the performance of employees, and determining the challenges of implementing non-financial compensation in public organizations. This study employed a mixed research approach. The study was conducted in Mkalama District Council, and it focused on employees who work in public organizations. The targeted population was 1391 with a sample size of 70 respondents. Respondents were obtained through purposive and stratified random sampling. It also adopted descriptive research design which aimed to describe or document the characteristics, behaviours, attitudes, opinions and perceptions of a group on a phenomenon being studied. Primary data was collected through questionnaires and interviews while secondary data was obtained through reviewing various documents. Data were analysed through thematic analysis method and descriptive statistical methods. The findings revealed that, there was a relationship between non-financial compensation and employees‟ performance. Many of the respondents claimed to have seen a close relationship between non-financial compensation and employees‟ performance, but a few of them claimed to have not witnessed a relationship between an employee‟s performance and non-financial compensation. It is, therefore, top-level to lower-level employees should be involved in the formulation and development of the policies related with non-financial compensation and the entire workers‟ incentives in public organisations.