Employment security continues to be a major concern for millions of Filipinos, while employers struggle in establishing and maintaining a stable work force specifically in the finance service industry in the Philippines. Financial services refer to services provided by the finance industry where it encompasses a broad range of organizations that deal with the management of money and among these organizations are banks, credit card companies, insurance companies, etc. The average job in the finance industry requires skilled employees and is often the considered destination employment of most accounting and finance graduates on the other hand, these companies perceive the high turnover rate as a major problem and leave the employer to fill the same position again and again. A better understanding of employee motivation is one answer to this dilemma.
What is motivation? A good working definition of motivation is: motivation represents a measurable increase in both job satisfaction and productivity. The motivated worker does his job better and likes it more than those folks who are not so motivated. A follow-up question to this is why do people work? This is not a new inquiry, but the answer has been the quest of management experts for years (Herzberg, 1968). It is generally agreed upon that if an employer can identify the reasons a worker is productive, reports to work on time and remains with the company, the employer might then be able to apply these motivational factors unilaterally to the entire workforce. Applying this knowledge and fashioning the employment atmosphere to better accommodate the motivational factors of the employee the employer becomes a more desirable employment destination, retaining employees longer and increasing productivity and service at the same time. BACKGROUND OF THE STUDY
Employee motivation has been studied at length. Through research, a significant myth has been dispelled and shown to be incorrect. The biggest misconception was that good wages were always the primary motivational factor among employees regardless of the industry by which they are employed (Tsang, Wong, 1997). In a survey done by a human-capital consultancy Hudson in March 2006 where it reported that finance executives seem very satisfied with their compensation than most other workers. Reasons mentioned by Hudson for the higher satisfaction include that accounting and finance employees are more likely to have received a raise within the last year than the overall workforce.
In this study, the researcher would like to determine, whether the motivation factors in Banko Sentral ng Pilipinas (BSP) and other Financial Instituions in Metro Manila has a significant effect in the job satisfaction of employees.
This study will be based on the Existence, Relatedness and Growth (ERG) theory of motivation and its measurement. This theory is the result of the studies conducted by Clayton P. Alderfer, at Yale University over a period of five years (1965-1969) and published in 1972.
The ERG theory is a model in reaction to Maslow’s famous Hierarchy of Needs, which distinguishes three categories of human needs that influence worker’s behavior; existence, relatedness and growth. Alderfer condenses the Maslow hierarchy into three need categories:
ALDERFER’S ERG THEORY
Existence needs are all the various forms of physiological and material needs and desires, such as hunger, thirst and shelter. In organizational settings, needs for pay, benefits and physical working conditions are also included in this category. This category is comparable to Maslow’s physiological and safety needs.
Relatedness needs include all those that involve interpersonal relationships with others in the workplace. This type of need in individuals depends on the process of sharing feelings with others to attain satisfaction. This need category is...