Assessing The Impact of Monetary and Non-Monetary Incentives on Employee Performance at Good Hope Private and Kabudula Rural Hospitals in Lilongwe, Malawi

Abstract

This study assessed the influence of monetary and non-monetary incentives on employee performance at Good Hope Private Clinic and Kabudula Rural Hospital in Lilongwe, Malawi. The aim was to provide analytical insights into the impact of monetary and non-monetary incentives on employee performance at Good Hope Private Clinic and Kabudula Rural Hospital in Lilongwe, Malawi. A mixed-methods approach, grounded in pragmatism, was adopted to provide a comprehensive analysis. Quantitative data were collected through structured questionnaires administered to 171 respondents, while qualitative data were obtained through in-depth interviews with key stakeholders. Purposive and random sampling were used as techniques. Data were analyzed using descriptive statistics and thematic analysis. The findings revealed that both monetary and non-monetary incentives significantly influenced employee performance, although their effectiveness is moderated by adequacy, fairness, and consistency. Monetary incentives, such as salaries and allowances, were widely available but generally perceived as inadequate relative to workload, thereby limiting their motivational impact. In contrast, non-monetary incentives, including training, recognition, and supportive work environments, were found to have a strong positive effect on employee motivation, job satisfaction, and commitment. The study further identified differences between private and public healthcare facilities, with the private institution offering more structured and diversified incentive systems compared to the resource-constrained public facility. Despite these challenges, employee performance and patient service delivery were generally rated positively, suggesting the continued influence of intrinsic motivation and professional commitment. However, key barriers such as financial constraints, bureaucratic inefficiencies, lack of transparency, and perceived inequities in incentive distribution were found to undermine the effectiveness of incentive systems. The study concludes that a balanced and well-implemented combination of monetary and non-monetary incentives is essential for enhancing employee performance. It recommends strengthening financial incentives, expanding non-monetary rewards, and improving transparency and equity in implementation to optimize healthcare workforce performance and service delivery.