Impact of Non-Financial Rewards on Employees’ Performance in Public Organisations: Insights from Mbeya City Council

Abstract

This study assessed the impact of non-financial rewards on employee performance at Mbeya City Council, a public organisation. The research aimed to understand how non financial rewards are perceived and how they affect performance. This study employed a case study design with a mixed-methods approach. Data were collected from 80 respondents, comprising government employees and human resource officers, using questionnaires, interviews, and document reviews. Quantitative data were analysed in SPSS to generate descriptive statistics (frequencies and percentages), while qualitative data were analysed using content analysis. Findings show that non-financial rewards significantly boost employee morale, job satisfaction, and loyalty, thereby improving performance. Recognition, especially awards and certificates, was the most valued, increasing productivity and reducing turnover. However, inconsistent application of these rewards can demotivate staff, while enhanced job security positively impacts focus and reduces stress. The study concludes that a consistent, well-structured non financial rewards system is crucial for public service. Recommendations include regular, personalised recognition programmes, professional development opportunities, and transparent communication on job security. Future research should explore the link between non-financial rewards and long-term employee retention in the public sector.