Effect of Employee Incentives on Financial Performance of Listed Deposit Money Banks in Nigeria

This study explores the effect of employee incentives on financial performance, with a focus on
First Bank Nigeria. The research specifically aimed to: examine the effect of research and
development (R&D) training on the financial performance of listed deposit money banks in Nigeria;
investigate the role of performance appraisal improvements in the financial performance of listed
deposit money banks; and evaluate the impact of employee productivity improvement on the
financial performance of listed deposit money banks. A descriptive research design was employed,
with a sample size of 108 respondents from First Bank Ado Ekiti and Ikere Ekiti, Nigeria. Data
were collected through questionnaires, and the mean was used to analyze the research questions,
while t-tests were used to test the hypotheses. The study revealed that employee incentives have a
profound impact on the financial performance of listed deposit money banks in Nigeria.
Specifically, research and development training, performance appraisals, and productivity
improvement initiatives significantly contribute to enhancing employee performance, which
directly correlates with better financial outcomes for the organization. In conclusion employee
incentives is essential for improving organizational performance, fostering innovation, and
achieving financial sustainability in Nigeria’s banking sector. Based on the findings, the study
recommends that banks should establish a transparent, consistent, and comprehensive performance
appraisal system that evaluates employees’ contributions objectively, with actionable feedback tied
to career development opportunities such as promotions, mentorship programs, and further
training