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The Impact Of Financial And Non-Financial Motivation On Job Performance

Author

Listed:
  • Nicoleta Valentina FLOREA

    (University of Valahia, Targoviste, Romania)

  • Gabriel CROITORU

    (University of Valahia, Targoviste, Romania)

  • Daria FLOREA

    (University of Valahia, Targoviste, Romania)

  • Mihai Bogdan CROITORU

    (University of Valahia, Targoviste, Romania)

Abstract

Employee motivation is a critical determinant of job performance, influencing productivity, job satisfaction, and organizational success. This study examines the relative impact of financial and non-financial motivation on employee performance, using Herzberg's Two-Factor Theory and Self-Determination Theory as theoretical frameworks. While financial incentives such as salaries, bonuses, and benefits drive short-term productivity, non-financial motivators - including career development opportunities, job security, recognition, and a supportive work environment - have a more significant and lasting impact on employee engagement and commitment. Using a quantitative methodology, this research surveyed 112 employees from diverse industries in the South Muntenia region of Romania, analyzing data through Partial Least Squares Structural Equation Modeling (PLS-SEM). The results indicate that while financial motivation positively influences performance, non-financial motivators exert a stronger effect, fostering sustained engagement and long-term organizational commitment. These findings highlight the necessity of an integrated motivational strategy that balances financial rewards with intrinsic motivational drivers to enhance overall workforce performance.

Suggested Citation

  • Nicoleta Valentina FLOREA & Gabriel CROITORU & Daria FLOREA & Mihai Bogdan CROITORU, 2025. "The Impact Of Financial And Non-Financial Motivation On Job Performance," European Journal of Accounting, Finance & Business, "Stefan cel Mare" University of Suceava, Romania - Faculty of Economics and Public Administration, West University of Timisoara, Romania - Faculty of Economics and Business Administration, vol. 13(1), pages 30-50, February.
    • Handle: RePEc:scm:ejafbu:v:13:y:2025:i:1:p:30-50
    DOI: 10.4316/EJAFB.2025.13104
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    References listed on IDEAS

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    1. Ioan Moise Achim & Larisa Dragolea & George Bălan, 2013. "The Importance Of Employee Motivation To Increase Organizational Performance," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 2(15), pages 1-32.
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