What Motivates Internal Auditors? Comparative Regional Study: The Role of Non‑Material Compensations

Abstract

The Vision of internal audit 2035 envisages a transformation of the profession, in which internal auditors become strategic consultants in their organizations, which makes their work even more important and useful. The quality of the work of this function, in addition to other factors, is influenced by the motivation of internal auditors. Bearing in mind that financial compensation cannot satisfy all the needs of an individual, the aim of this research was to examine the impact of non-material compensations on the work motivation of internal auditors. The anonymous survey was conducted at five professional meetings of the internal audit associations in the Republic of Serbia, the Republic of Srpska, the Republic of Croatia and the Republic of Slovenia, including a total of 252 respondents. Descriptive statistics were used in processing the obtained data. The results of the research showed that non-material incentives have a significant impact on the work motivation of internal auditors, while three were rated as the most important: good interpersonal relations, independence in performing work, and professional education and development. The research found that there is a certain difference in the choice of motivators among the group of youngest respondents, while gender and management position did not influence the most important intangible motivators. The paper discusses a motivational mix that can be helpful to managers in managing human resources in internal audit. It is expected that non-material compensations to be important for the work motivation of internal auditors in the future as well, especially with the growth of the share of new generations in the total workforce.