Does Money Motivate Employees? Empirical Study of Private and Public Financial Sector in Kazakhstan

  •  Arman Kulchmanov    
  •  Maniam Kaliannan    


Purpose: The paper analyzes the financial and non-financial factors impacting employees’ performance ofdifferent financial institutes currently operating in Kazakhstan.Methodology: The survey was conducted by using questionnaire with five-point Likert scale for assessing givenstatements regarding financial and non-financial motivators at the different organizational and demographiclevels for employees at the chosen financial institutes. Additionally was considered different perception ofmotivational factors within different demographic categories.Findings: This study proved sustainability Maslow theory of motivation and Herzberg’s motivation and hygienefactors at the workplace. Money still is the strongest and compulsory factor for employees, which can satisfyonly basic needs. But in isolation of other non-financial motivational factors money are not able to encouragestaff to do go beyond their duties and increase their productivity. Job security, internal relationship andtransparency were defined by interviewees as the most important non-financial motivation factors. Also there isan advantage of Corporation “B” which is Government public financial company over private bank – which isbank “A” is higher level of satisfaction of its employees with financial motivation.Research limitations: The study was limited by only two financial institutes study, meanwhile in Kazakhstanthere are 42 commercial banks.Practical implications: The paper analyzes the financial and non-financial factors impacting employees’performance of different financial institutes currently operating in Kazakhstan. The results can be used as avaluable feedback for improvement Strategic HR Policies in considered financial institutes and will be useful forthose who are interested in HR Management in Kazakhstan in general.

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