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

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.