Effect of Incentive-based Performance Appraisals on Employee Productivity in Indian Banks
Year: 2025
Type: article
Abstract: Employee retention is a critical issue in the Indian banking sector, where high turnover rates can compromise operational stability, increase recruitment costs, and weaken customer satisfaction. This study investigates the impact of incentive structures both financial and non-financial on employee retention in public and private banks in India. A quantitative approach was adopted using structured questionnaires, with data collected from 300 bank employees across major metropolitan cities. Statistical analysis was conducted using descriptive statistics, correlation, regression, and ANOVA with the help of SPSS technique. Results indicate that while financial incentives like bonuses and variable pay are positively associated with retention, while non-financial incentives such as recognition, career development opportunities, and work-life balance play a significantly stronger role in influencing employee retention. The study also found that perceptions of incentives and their effect on retention varied significantly by bank type, with private bank employees showing higher responsiveness to both incentive types. This research contributes to a better understanding of how tailored incentive strategies can enhance employee commitment and reduce attrition. Findings recommend a balanced approach to reward systems, integrating both monetary and non- monetary benefits. Keywords: Employee Retention, Incentive Structures, Indian Banking Sector, Financial Incentives, Non-Financial Incentives
DOI: 10.36713/epra24126
Authors: Shweta Singh, Dr. Mritunjay Mahato
Language: English
Subfield: Human Factors and Ergonomics
Field: Social Sciences
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W7083326299
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