The Importance of Financial Incentives and Teamwork Cooperation on Employee Performance in Saudi Arabia.

Abstract

The goal of optimising employee performance has become a paramount concern for businesses across industries. In this context, questions surrounding how to effectively improve employee performance have consistently been examined. The research focuses on employees working in different sectors in Saudi Arabia and aims to investigate the importance of financial incentives and teamwork cooperation on employee performance in Saudi Arabia.

The research began by conducting a review of the literature to develop a research framework linking financial incentives and teamwork to employee performance. The theoretical framework was developed by integrating Herzberg’s Two-Factor Theory and Social Exchange Theory (SET) to explain the impact of financial incentives and teamwork on employee performance in Saudi public and private sectors. Using this framework as a guide, survey data was collected from 156 respondents from the Saudi public and private sectors in order to empirically investigate the impact of financial incentives and teamwork on employee performance in Saudi public and private sectors. Analysis of the data indicates that respondents in this study generally have positive perceptions of their overall performance, financial incentives from their organisation, teamwork collaboration, and the combined impact of financial incentives and teamwork collaboration on their performance. Additionally, the results showed that both financial incentives and teamwork positively impacted employee performance in the Saudi public and private sectors, as respondents generally reported favorable perceptions of how these factors enhanced their overall work performance.

The research concludes with recommendations for organisations to effectively use financial incentives and teamwork to address employee performance across organisations were presented in the final chapter. Specifically, employers should implement financial incentive programmes perceived as fair and effective, invest in initiatives that promote effective teamwork, design incentive structures that encourage team collaboration, use tailored or flexible strategies for financial incentives and teamworking initiatives, and regularly review and adjust their financial incentive programmes.