The Link Between Financial and Non-Financial Incentives and Employee Performance

This bachelor thesis deals with the issue of motivation and remuneration, specifically the relationship between financial and non-financial incentives and employee work performance. The main goal was to map the perception of these incentives in a selec-ted manufacturing company with chemical operations (Company XYZ) and describe their impact on performance from the perspective of the employees themselves. The theoretical part defines the background of work motivation, the division of material and non-material stimulation, and their synergistic effects. The practical part utilizes qualitative research through semi-structured interviews with eight employees from the production and administrative departments. The results suggest that a fixed salary ful-fills the function of existential security, while the variable component motivates only under transparent conditions and the ability to influence the outcome. Non-financial factors, such as supplementary leave, fair treatment by superiors, and good relation-ships in the team, form an essential superstructure for maintaining long-term em-ployee engagement. The conclusion of the thesis offers practical recommendations for the organization's management aimed at adjusting the motivational system.