ASSESSING THE EFFECTS OF SEMI-FINANCIAL INCENTIVE SCHEMES ON CONSTRUCTION PROJECTS’ PERFORMANCE

Abstract

Motivation of workers is one of the important factors determining the success of projects in the construction industry. However, despite the existence of financial and non-financial incentive schemes, many construction organisations still suffer from the problem of demotivation. Traditional incentive schemes have limitations. Semi-Financial Incentive Schemes (SFIS), which combine characteristics of financial and non-financial incentives, have been proposed as a way to overcome these limitations. This study assessed the effect of SFIS on employee motivation and construction project performance of medium and large-scale construction firms in Nigeria. Quantitative research design was utilized and structured questionnaires were distributed to the management and technical staff of construction firms. 256 questionnaires were distributed and 250 were returned and analysed using descriptive statistics (frequencies, mean and standard deviation). Among the fourteen SFIS assessed, “education and training”, “free or subsidized medical services”, “availability of soft loans”, “provision of insurance and staff children's scholarship schemes” were the most significant to both technical and management staff. The combined perceived effects of SFIS on project performance for both medium and large firms, revealed “achievement of goals and objectives”, “improved customer retention” and “better customer relationship”, as having the highest combined mean scores and all fall within the very high effect scale range. While “substantial cost saving” and “increase in profitability” recorded the lowest combined mean scores. This confirms the perception that SFIS affect project performance more profoundly through relational and goal-oriented outcomes than through direct financial rewards. The results support the view that incentives with monetary and non-monetary attributes can satisfy motivational needs related to welfare and performance. The study provides empirical evidence and practical guidance to construction firms for designing incentive structures to improve employee motivation and project delivery outcomes.