Analyzing Financial and Non-Financial Factors Affecting the Performance of Employees in Public Organizations in the UAE
DOI:
https://doi.org/10.70301/Keywords:
Financial Factors, Non-Financial Factors, Employee PerformanceAbstract
Employee performance (EP) refers to the behavior of employees within an organization (Bert & van, 2023). It refers to the activities carried out by employees, including both input and output activities, that contribute to achieving organizational objectives. The main objectives of the current study are: i) to examine the impact of the financial incentives namely, salary, end of the term benefits, other financial incentives on the EP in public sector in United Arab Emirates (UAE); ii) to analyze the impact of the non-financial incentives namely, work environment, recognition, leadership support, and flexibility on the EP in public sectors in UAE. The results confirm the significance of the reward system in the UAE public sector considering that both types of incentives (financial and non-financial) positively affect the employees' performance. All forms of financial incentives, including salary, end-of-term compensation, and other financial rewards, clearly affect performance positively. Thus, a suggestion can be made that public organizations in the UAE should discontinue their policies focusing solely on salary and instead implement integrated reward systems that include recognition, developmental, and relational incentives alongside financial ones. The results of this study, however, suggest that HR in the UAE public sector should encourage supportive leadership, recognition system(s), a favorable work environment, and alternative work arrangements in addition to flexible pay to improve performance, retention, and service quality.
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