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Revista Internacional de Economía y Ciencias de la Gestión

ISSN: 2162-6359

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EFFICACY OF FINANCIAL INCENTIVES ? An Assessment of Medium Scale Entrepreneurial Firms.

Abstract

OJOKUKU, Roseline, Moyosore. (Ph.D) and OYEDOKUN, Akintunde, Jonathan.

The paper examined the efficacy of financial incentives in motivating employees of ICT medium scale enterprises. Seven financial incentives (profit sharing, bonus, premium pay, stock options, cash bonus, and commission and retirement savings incentives) were examined in the paper. Convenience sampling techniques was adopted with a sample size of 167. Descriptive tools involving percentages, frequency distributions and cumulative frequency was used to analyze the data. The result confirmed that cash bonus, premium pay and profit sharing constitute the effective financial incentive entrepreneurs used in motivating their employees. Senior staffs of the establishment were found to be the major beneficiary of retirement savings incentives.

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