THE IMPACT OF MONETARY BENEFIT ON BANKING EMPLOYEE’S PERFORMANCE

Abstract

Aim: This study explores how financial incentives affect the productivity of banking staff in Nangarhar, Afghanistan. The primary objective is to evaluate the influence of fairness,sufficiency, and competitiveness of financial benefits on employee performance andwork satisfaction in the banking industry. 

Methods: A sample of 100 banking employees from different levels of the hierarchy was surveyed using a Likert scale to determine how they felt about various monetary benefits.According to descriptive statistics, the employees' mean performance level was moderate (6.49), while their opinions of fairness and the sufficiency of financial advantages were low (1.82). Strong correlations were found via correlation analysis between job satisfaction and employee performance (0.729), as well as between the fairness and sufficiency of financial advantages (0.616). Additionally, regression analysis revealed that employee performance was significantly predicted by the fairness and sufficiency of financial perks, which explained 69.1% of the variance in performance outcomes.

Results: The results of the study show that although financial rewards have a favorable effect on job satisfaction, their perceived insufficiency may hinder overall employee motivation and performance in the banking industry.

Conclusion: A key element in improving employee performance in the banking sector is improving the equity and sufficiency of financial benefits. Rethinking compensation techniques is essential for banks to make sure that financial advantages are seen as fair and competitive.

Recommendations: It is advised that banks give improving justice and sufficiency in their financial benefit plans a priority in order to create a more driven workforce and improve performance and job satisfaction among banking staff. Furthermore, raising employee knowledge of the importance of these perks can help create a more contented and productive team.