THE IMPACT OF FINANCIAL LEVERAGE ON EMPLOYEE MOTIVATION
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- NGN 3000
Abstract: THE IMPACT OF FINANCIAL LEVERAGE ON EMPLOYEE MOTIVATION
Objective: This study aims to (1) explore the relationship between financial leverage and employee motivation, (2) identify factors influencing perceptions of financial leverage, and (3) assess the impact of financial strategies on employee satisfaction and organizational performance.
Research Design: A survey design was selected to collect detailed feedback from employees regarding their perceptions of financial leverage and its impact on motivation.
Sample Size: Utilizing Taro Yamane's formula, a sample size of 370 employees was determined, ensuring a 95% confidence level with a 5% margin of error.
Case Study: The research focused on the banking sector, where financial strategies influence operational efficiency and employee satisfaction.
Location: Lagos, a major financial center with a diverse banking workforce.
Reliability Coefficient Score: The survey instrument had a Cronbach's alpha score of 0.87, indicating high reliability.
Findings: Financial leverage, when managed effectively with transparency and fairness, can positively influence employee motivation by supporting growth opportunities, competitive compensation, and organizational stability. Mismanaged financial strategies may lead to uncertainty and decreased motivation among employees.
Recommendation: Banking institutions should adopt responsible financial strategies that balance growth objectives with employee welfare, ensuring transparency, fairness, and stability to enhance motivation and organizational performance.
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