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The Impact of Financial Incentives on Employee Motivation and Job Satisfaction in Private Universities in Nangarhar Province

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  • Ziauddin Muhammadi

Abstract

This study examines the influence of financial incentives on job satisfaction, retention, and motivation of employees at a private university in Nangarhar province. Eighty employees, including both teaching and administrative staff, participated in the data collection. The results indicate that a considerable number of employees are dissatisfied with their remuneration, overtime allowances, and bonuses. A large proportion of them perceive that the financial incentives they receive are unfair and insufficient. The research shows that when good financial incentives are provided, employees become more motivated, do more effort, and are more engaged in their work. The majority of respondents felt that monetary benefits would help boost job satisfaction and encourage them to stay longer at the university. This implies that financial rewards are crucial in ensuring that employees remain happy and motivated. According to the research, university management should reconsider and fine-tune its salary structure, overtime payments, bonuses, and allowances in order to retain staff and maintain their satisfaction. The findings also show that when employees understand they can receive financial rewards, they become more determined to achieve their objectives and perform better. The majority believe that financial rewards directly enhance their motivation and willingness to work harder. However, the analysis of the existing reward systems revealed several issues, particularly regarding overtime pay, food and transport reimbursement, and the motivational impact of bonuses. These concerns contribute to dissatisfaction and demotivation among many employees. Therefore, the administrations of private universities in Nangarhar must take serious action to improve financial policies, ensure equal treatment, and develop more effective reward systems that positively influence employee motivation and satisfaction, ultimately increasing the likelihood of long-term retention.

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Handle: RePEc:ris:tijssc:022645
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