The relationship between financial motivation and employee performance has continued to be a deep-
seated interest in organizational and behavioral studies. Meanwhile, however, there are some gaps in
the literature that will show areas which need further investigation. These can be attributed to
contextual differences, the complexities of human motivation, and the dynamic nature of the work
environment, especially in highly volatile sectors like retail.
While numerous studies examine the direct relationship that exists between financial incentives and
employee performance, only a few focus on how different forms of financial incentives, such as
bonuses, commissions, profit-sharing, and non-monetary rewards, influence different groups of
employees. For instance, an incentive based on commission could be powerful in the case of fully
employed workers but may not work effectively in the case of part-time or temporary employees; yet,
few studies make this kind of differentiation. Understanding such differences could help in the
adaptation of motivational strategies for different employee segments in retailing organizations.
The second gap concerns an analysis of organizational climate as a moderator that impacts the
association between financial motivation and performance. Although there is some literature dealing
with organizational climate as a separate factor influencing employee satisfaction and retention, few
touch on the issue of whether a positive or negative climate may amplify or dampen the effectiveness of
financial motivation. In doing so, this indicates that the potential of financial incentives to enhance
performance might heavily depend on aspects of organizational culture and climate, an area that largely
remains unexplored.
Moreover, research into which leadership styles work best in retail environments to bring about
financial motivation is still scarce. While it is often held that transformational leadership leads to a high
level of employee engagement, for example, it is not crystal clear how different leadership styles may
interact with financial incentives and impact employees' performance differentially. In fact, a great deal
of further research is needed to explain how transactional versus transformational leadership can act as
a moderator on employees' responses to financial rewards, especially in retail environments where
management styles can be very diverse.
The final limitation is that few recent studies have gauged the long-term impact of financial motivation
on performance and career retention. Most studies conclude with the benefits derived from short-term
performance gains without, however, addressing whether the motivational impact of financial
incentives will result in ongoing motivations toward loyalty. This is important to note, since short-term
gains cannot be implicitly assumed to translate into long-term employee commitment, which is an
essential factor in organizational stability. Further research with longitudinal studies is needed to
examine whether performance gains and turnover reductions due to strategies of financial motivation
are lasting, as economic pressures and employee expectations continue to change.
These gaps point out the necessity of a more nuanced approach in financial motivation research,
especially for complex and high-turnover environments such as retail. This could provide a particularly
exciting foundation for future studies: looking at how certain contextual variables-incentive type, for
instance, and then organizational climate, leadership style, and the long-term impact-end with financial
motivation to affect employee performance across a wide variety of settings.
