Effect of extrinsic motivation factors on employee performance in the banking sector

Employee’s motivation is crucial for any business to survive and prosper in today’s competitive business world. Realizing this, the general objective of this study was to examine the effect of extrinsic motivation factors on employee performance in case of commercial banks branch found in Werabe town by taking 156 employees from 256 total populations, so that the study used stratified sampling and simple random sampling. The study adopted mixed approach and used primary data sources. The data collected through standardized Likert-scale questionnaire and analyzed using both descriptive and inferential statistics. The study used SPSS V21 statistical tool for analyzing the collected data. The regression result showed that the independent variables used in the study explain 81% variability on employee performance. The beta coefficients of this study indicated that compensation and benefit have a largest effect on employee performance followed by training and development. The study concluded that all the independent variables such as compensation and benefit, training and development, employee promotion, working environment and employee recognition had positive relation and significant effect on employee performance. Finally, recommendation forwarded as all the independent variables have positive relation and significant effect on employee performance the bank needs to work on these motivational variables continuously and consistently with a due attention to attract, motivate, satisfy and retain its staffs as this works directly proportional to the employee performance and to boost employees ability, skill and efforts to achieve the organizations goal and objectives.