The influence of favouritism as non financial incentives on employee performance

Abstract: ABSTRACT In the business sector, favouritism is a frequent and typically disapproved behaviour. However, when used as a reward for excellent employee performance, favouritism can incentivize increased employee productivity and performance. This exploratory qualitative study seeks to evaluate the function of favouritism as a non-financial incentive motivating employee performance in the Nigerian banking industry. Although there is research demonstrating the good features of favouritism, little is known about the benefits of favouritism and its effects on employee motivation and performance. Thus, this thesis has three primary purposes: to examine the views of Nigerian bank employees regarding favouritism and non-financial incentives in organisations; to investigate how favouritism can manifest and its impact on organisation as a non-financial incentive; and to create knowledge on how to improve the use of favouritism as a non-financial incentive in the workplace. Using the Nigerian banking industry as a case study, this study investigated the research questions posed. Eighteen Nigerian bankers in different positions at seven Nigerian commercial banks were interviewed using an online semi-structured interview. The interviews were transcribed, and a thematic analysis was employed to interpret and summarize the qualitative data's findings. This study found that favouritism is prevalent in the Nigerian banking industry and arises from factors such as nepotism, cronyism, tribalism, gender, religion, and performance. The findings show that favouritism can be regarded as a non-financial incentive which acts as an extrinsic motivator for employee performance. It also demonstrates that favouritism based on performance can be employed as a non-financial incentive even if other forms are discouraged.  Humans are complicated beings; therefore, viewing issues that influence human interactions holistically is advantageous. This study illustrates that, despite the adverse outcomes associated with favouritism it can have beneficial results that managers can exploit to improve employee performance and, ultimately, business success. In unprecedented times of change, the success of an organisation is highly dependent on the performance of employees. Thus, organizations can benefit from the shared findings and recommendations.