The role of salary in employee motivation and retention in the financial sector of the czech republic in relation to herzberg's two factor theory of work motivation

Abstract

The article deals with employee motivation and retention in the financial sector. The first part defines the terms motivation and retention and introduces the related theories - from the very beginning, through the classical theories and the contemporary modern theories. The article's author utilizes own extensive research among respondents coming from employees in the financial sector, supplemented by the round table method. The author analyzes the research results and deals with the role of wages in employee motivation - whether and when wage functions as a motivator leading to higher employee performance according to the Herzberg's two factor theory (an intrinsic needs motivator, i.e. satisfier) and when it is a factor, if positive, without infl uence on employee activity while if negative or absent, it causes employee dissatisfaction (a hygiene factor known as dissatisfier in the same theory). There are recommendations for organizational best practices shown at the end of the article.