APRIL 2024 ISSUE

Research Article

Application of Herzberg's Two-Factor Theory: Motivational Factors and Hygiene Factors in the Financial Industry

Abstract

This study aimed to investigate the applicability of Herzberg's Two-Factor Theory of Motivation within the financial sector, focusing on banking institutions through a quantitative approach. Through meticulous statistical analysis using the weighted mean formula, data from 100 bank employees, spanning ages 20 to 54, with a gender distribution of 35 males and 65 females, was methodically processed. Each respondent was presented with thoughtfully crafted questionnaires, aimed at pinpointing instances where they experienced notable satisfaction or dissatisfaction in their work or office atmosphere. The findings uncovered pivotal motivational factors within the bank's environment, highlighting recognition, responsibility, and opportunities for growth as key drivers of motivation among employees. Interestingly, the study also shed light on hygiene factors, such as company policies, relationships with superiors, and salary, revealing a strikingly low level of dissatisfaction among employees. These results suggest that the working conditions and support systems within these banking institutions are largely meeting or exceeding employee expectations, contributing positively to their overall motivation and satisfaction. In conclusion, this research validates Herzberg's theory within the context of banking but also offers valuable insights for institutions aiming to enhance employee motivation and engagement.

Keywords: Herzberg's Two-Factor Theory; Motivational factor; Hygiene factor; Financial industry; Banking; Philippines

Application of Herzberg's Two-Factor Theory: Motivational Factors and Hygiene Factors in the Financial Industry