An analysis of the Relationship Between Compensation, Performance and Motivation in the Financial Sector


  • Kaltrina Bunjaku Pasuli PhD (c)


Compensation, Performance, Motivation, Financial institutions


The aim of this research is to analyze the relationship between compensation, performance and motivation of employees in the financial sector in Kosovo. The research analysis was conducted by combining quantitative and qualitative methods. For the purposes of this study, two data collection techniques were used. One includes the literature review, while the other includes the interviews. Questionnaires compiled in the form of closed and open questions were used as an instrument for data collection.

The results show that the increase in compensation does not have a significant impact on the increase in the performance of employees in the financial sector in Kosovo in the long term. An increase in the level of compensation can increase the motivation of employees. Employee motivation is related to performance evaluation, compensation, non-monetary rewards, provision of training for individual development, gratitude, feedback, etc. Correct reporting and management approach on performance evaluation affects the motivation of employees in the financial sector. The feeling of equality and justice in the compensation level is one of the basic conditions for the motivation process. There is no real reward system (economic or psychosocial) that is applied in financial institutions in Kosovo.

This paper is original in nature and the motivation to study this topic is the success, sustainability and stability of the financial sector in Kosovo. The findings of this study will contribute to the management of the financial sector, through the implementation of the recommendations based on the conclusions reached, in increasing the productivity and performance of the employees of the financial sector in Kosovo.