AN EVALUATION OF FINANCIAL INCENTIVES ON THE PERFORMANCE OF WORKERS IN FEDERAL POLYTECHNIC BAUCHI

ABSTRACT This study evaluated the impact of financial incentives on the performance of workers in Federal Polytechnic Bauchi. Employee motivation and productivity are crucial for institutional effectiveness, and incentives particularly financial ones such as salaries, allowances, and bonuses play a major role in shaping worker commitment and performance. The objectives of the study were to: (i) analyze the extent to which financial incentives influence employee motivation, (ii) assess how different types of financial incentives affect productivity, (iii) identify challenges associated with the incentive system, (iv) examine the role of non-financial incentives, and (v) propose measures to improve the effectiveness of incentives A descriptive survey design was adopted, with a total population of 1,177 employees (academic and non-academic staff). Using Yamane’s formula, a sample of 299 respondents was selected, and data were collected through structured questionnaires. Out of 299 distributed questionnaires, 260 valid responses were analyzed using descriptive and inferential statistics (mean, standard deviation, correlation, and regression) with SPSS The findings revealed that financial incentives strongly motivate employees, with salary increments, bonuses, and allowances emerging as key drivers of productivity. However, challenges such as delays in payment, inequitable distribution, and lack of transparency reduced the effectiveness of these schemes. The study also showed that non-financial incentives including recognition, training opportunities, and conducive work environments play an important complementary role. The most effective framework for motivation was found to be a combination of financial and non-financial incentives linked to clear performance indicators The study concludes that while financial incentives remain central to motivating staff, their impact is maximized when integrated with non-financial motivators and implemented with fairness, transparency, and timeliness. It recommends regular salary reviews, performance-linked incentives, prompt disbursement, and transparent policy implementation. Future studies should extend this evaluation to other Nigerian polytechnics and universities to allow for broader comparative analysis.