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More than a paycheck: How non-financial incentives shape employee motivation in public administration

Author

Listed:
  • Andi Irwan
  • Vebby Anwar
  • Cakra Zaitun

Abstract

This study examines how non-monetary rewards affect worker motivation in Indonesia’s public sector, highlighting the moderating influence of leadership style and the mediating function of perceived organizational support (POS). Partial Least Squares Structural Equation Modelling (PLS-SEM) and survey data from 357 public sector workers were used to confirm that work-life balance, career advancement, job enrichment, and recognition significantly increase motivation, with career development having the most impact. POS mediates these ties, and their influence is increased by transformational leadership. These observations, which emphasize the value of organized career development, successful recognition programs, and leadership training, add to the body of knowledge in human resource management and provide valuable suggestions for legislators. Public service performance can be improved, and staff motivation can be raised by bolstering organizational support and encouraging leadership involvement.

Suggested Citation

  • Andi Irwan & Vebby Anwar & Cakra Zaitun, 2025. "More than a paycheck: How non-financial incentives shape employee motivation in public administration," Asian Management and Business Review, Master of Management, Department of Management, Faculty of Business and Economics Universitas Islam Indonesia, vol. 5(1), pages 178-195.
    • Handle: RePEc:uii:jrambr:v:5:y:2025:i:1:p:178-195:id:37918
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    File URL: https://journal.uii.ac.id/AMBR/article/view/37918
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    References listed on IDEAS

    as
    1. Abdulsalam Aljumah, 2023. "The impact of extrinsic and intrinsic motivation on job satisfaction: The mediating role of transactional leadership," Cogent Business & Management, Taylor & Francis Journals, vol. 10(3), pages 2270813-227, December.
    2. Hazem Aldabbas & Ashly Pinnington & Abdelmounaim Lahrech, 2021. "The Mediating Role Of Psychological Empowerment In The Relationship Between Knowledge Sharing And Innovative Work Behaviour," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 25(02), pages 1-31, February.
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