Unveiling employee motivating factors during economic crisis periods: A structural approach

Abstract

Despite the unfavourable labour market and work environment conditions that have emerged in the last decade, this study identifies the factors that positively influence employee motivation. The study was conducted in Greece's banking sector, which was at the epicentre of the economic crisis. A new research model is proposed exploring the relationships between employee motivating factors, employee performance and organizational effectiveness. This model is empirically tested using structural equation modelling on data from 328 bank employees. The results are controversial, showing that non-financial incentives motivate Greek bank employees most, emphasizing their need to stay in their jobs. Highly motivated workers may boost corporate effectiveness by improving employee performance. Even though this study found that non-financial incentives motivate employees most, management should not overlook financial and job-related reward programmes. Managers must provide financial compensation, job security, and supportive leadership to reduce employee dissatisfaction and keep employees motivated. Managers should view recognition as an essential component of motivation because it contributes to the creation of an environment that is both productive and efficient for the organization. The conclusions drawn from studying Greece's 10-year-long economic crisis are significant because many other countries around the world are experiencing (or may experience) a similar crisis.