Effect of Motivational Strategies on Employee Performance in Nigerian Commercial Banks

Abstract

The objective of this research is to investigate the connection between motivational strategies and employee performance, as well as the role of employee formal recognition as a mediator between these motivational strategies and performance. Data were collected from a sample of 579 employees using a simple sampling technique, resulting in 497 usable responses and a response rate of 85.84%. Structural equation modeling (SmartPLS 4.0) was employed to analyze the relationships between the variables. Among the 10 hypothesized paths, 8 were supported. Motivational strategies (salary satisfaction, working environment, bonus and fringe benefit & training and development) except job security significantly influence employee performance; herein training and development has the greatest effect on employee performance. This study also reveals that employee formal recognition partially mediates in the link between motivational strategies and employee performance except for job security. These findings will provide valuable insights for banks and other stakeholders in understanding the importance of motivational strategies and employee formal recognition in enhancing employee performance within the banking sector. This study is one of the first of its kind to explore the mediating role of employee formal recognition in the relationship between motivational strategies and employee performance specifically in the Nigerian banking sector.