Influence of Incentive Schemes on Employees’ Performance: ACase of Hospitals in Nyamagana District-Tanzania

The study investigated the influence of incentive schemes on employees’ performance in a services sector (hospital setting). The study advanced general objectives, Influence of incentives on employees ‘performance, and three main specific research objectives which formed the basis for the investigation. The variables were retirement benefits (RB), non-monetary benefits (NMI), and monetary incentives (MI) Three specific research objectives that guided the study were to assess the effect of retirement benefits on employees’ performance, to assess the effect of non-monetary benefits on employees’ performance and to assess the effect of monetary incentives on employees’ performance in public hospitals Tanzania. The study adopted a quantitative research design and data were collected from 112 respondents through the use of a closed-ended questionnaire. Random sampling technique was also used to select the respondents from the three selected hospitals in Nyamagana District. The unit of analysis was doctors, nurses, and other support staff in the selected hospitals. The data was analyzed with the aid of SPSS and results presented in both descriptive and inferential statistics. The findings revealed that retirement benefits, monetary incentives, and also non-monetary benefits were significant predictors of employees’ performance. The study recommends for the management of the public hospitals to consider the three variables as shown by the data to be valued by the respondents. The study also found that retirement benefit was the most valued by employees, followed by monetary incentive and non-monetary. a valuable contribution to the existing body of literature in the field of human resources management in the hospital setting, area which had scarce studies.

Keywords; Employees’ performance, incentive schemes, monetary and non-monetary, public hospitals in Tanzania.