BEYOND SALARIES: HOW MANAGEMENT INCENTIVES DRIVE EMPLOYEE ENGAGEMENT IN MICROFINANCE BANKS, IN OSUN STATE

This study examined the influence of management incentives on employee engagement in microfinance banks in Osun State, Nigeria. The study employed a quantitative research approach to assess the relationship between management incentives and employee engagement. A multistage sampling approach was adopted to draw a sample of 127 from the selected microfinance banks‘ employees in Osun State. A structured questionnaire developed with five point Likert scale was used to gather data for the study as well as the Utrecht Work Engagement Scale (UWES) which was adopted. Data was analysed using regression analysis. The findings reveal that financial incentives, non-financial incentives, and performance-based rewards have a statistically significant influence on employee engagement. Based on these findings, the study recommends that microfinance institutions should optimize their incentive structures by integrating competitive salaries, recognition programs, and performance-driven rewards to sustain high employee engagement levels. The study also recommends periodic reviews of incentive strategies with a focus on ensuring alignment with employees' expectations and organizational goals.