Abstract

The study's objective is to examine the impact of motivation on employee performance in local non-governmental organizations in Mogadishu, Somalia, and it offers valuable insights into the efficacy of both financial and non-financial incentives. The study ensured a representative and statistically significant dataset by employing a quantitative research design and utilizing a sample of 105 employees selected through simple random sampling. Using structured questionnaires for data collection, coupled with advanced analytical tools such as SPSS and smart PLS, facilitated a robust evaluation of the relationship between incentives and employee performance. The findings underscore the importance of a multifaceted approach to employee motivation. Financial incentives, including salary, bonuses, and compensation, significantly influenced employee performance, highlighting the continued relevance of monetary rewards in motivating staff. Equally significant were non-financial incentives, such as improved working conditions, recognition, and opportunities for personal development, demonstrating a substantial positive impact on employee performance. These results emphasize the necessity for organizations to implement a balanced motivation strategy that addresses their employees' financial and personal growth needs. The study's recommendations for adopting such a balanced approach and maintaining transparent communication about incentive programs provide actionable insights for local non-governmental organizations seeking to enhance their employee motivation strategies and improve overall organizational performance.