A Comprehensive Analysis of the Effect of Employee Rewards on Employee Performance
Main Article Content
Abstract
Research Aims: The aim of this study is to explore the effects of employee rewards on employee performance. Design/Methodology/Approach: The information utilized in this investigation was already publicly available. Online search engines and associated periodicals were used to compile the secondary data. To back up the research, appropriate textbooks were examined. Research Findings: Both financial rewards and non-financial rewards influence the performance of employees in an organization. However, extrinsic rewards have a short-term effect on employees’ behaviour while intrinsic rewards have a long-term effect. Theoretical Contribution/Originality: The study contributes to theory by advancing the comprehension of the influence of total rewards (financial and non-financial rewards) on the performance of employees. Managerial Implication: The findings of this research will help employees and employers in understanding the critical effects of employee rewards on employee performance. Research Limitation & Implications: This study relied only on secondary sources, and the investigator lacked no means of verifying its accuracy.
Downloads
Article Details
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
References
Agbenyegah, G. K. (2019). Effect of Financial and Non-Financial Rewards on Employee Motivation in Financial Institution in Ghana. International journal of innovative research & development, 8(8), 121 – 130. https://DOI:10.24940/ijird/2019/v8/i8/JUL19029
Agrawal, P. & Tiwari, S. (2021). Impact of Financial and Non-Financial Incentives Schemes on Employee Financial Performance a General Perspectives. Journal of Emerging Technologies and Innovative Research (JETIR), 8(2), 1532 – 1538. www.jetir.org
Alabi, O., Olonade, Z. O., Omotoye, O. O., & Odebode, A. S. (2022). Non-Financial Rewards and Employee Performance in Money Deposit Banks in Lagos State, Nigeria. ABUAD Journal of Social and Management Sciences (AJSMS), 3(1), 58 - 77. https://doi.org/10.53982/ajsms.2022.0301.05-j
Annitah, N. K., & Mose, T. (2021). Non-Financial Rewards and Employee Performance in Selected Deposit Taking Saccosin Nairobi City County - Kenya. Journal of Human Resource Management, 5(2), 19 - 35.
Anyanga, P. W., & Wainaina, L. (2021). Effects of Monetary Rewards on the Performance of Legal Practitioners at the Attorney General’s Office in Nairobi. International Journal of Research and Innovation in Social Science (IJRISS), 5 (10), 722 - 726. www.rsisinternational.org
Armstrong, M. (2012). Armstrong's Handbook of Human Resource Management Practice. London: Kogan Page.
Armstrong & Stephens (2012).
Audrey, C. V., & Patrice, R. (2012). Adaptive performance: A new scale to measure individual performance in organizations. Canadian Journal of Administrative Sciences, 29(2), 280–293.
Awotidebe, S. O. (2018). Effect of Performance Incentives on Employee Efficiency in Deposit Money Banks in Dutsin-Ma, Katsina State. Research project, Bachelor of Science Degree in Business Management, Federal University.
Aye, E. T. (2019). Effect of Reward System on Employee Performance in Myanmar Apex Bank. Master’s thesis, Yangon University of Economics.
Ayling, J. (2021). Breaking the News: Performance Results and Employee Rewards. https://www.peoplegoal.com/blog/performance-based-rewards
Basmantra, I. N. (2018). The Effect of Non-Financial Reward and Punishment on Job Loyalty Through Job Satisfaction. Jurnal Ilmiah Manajemen & Bisnis, 3(1), 60 - 74. http://journal.undiknas.ac.id/index.php/manajemen
Borman, W. C., Buck, D. E., Hanson, M. A., Motowidlo, S. J., Stark, S., & Drasgow, F. (2001). An examination of the comparative reliability, validity, and accuracy of performance ratings made using computerized adaptive rating scales. Journal of Applied Psychology, 86(2), 965–973.
Cherotich, C., Chepkilot, R. K., & Muhanji, S. (2015). Impact of Rewards on Employee Behaviour. European Journal of Business and Management, 7(34), 43 – 50. www.iiste.org
Chinedu, O. J., & Osigbemhe, I. S. (2021). Reward System and Employee Performance in the Oil and Gas Industry in Rivers State. International Journal of Innovative Science and Research Technology, 6(7), 673 - 691. www.ijisrt.com
Colic, M., Arapovic, A. O., & Mekic, E. (2022). Financial and Non-financial Incentives as the Motivation Tool in Small, Medium and Large Companies. Journal of Human Resource Management, 10(2), 66 - 76. https://doi:10.11648/j.jhrm.20221002.14
Dahkoul, Z. M. (2018). The Determinants of Employee Performance in Jordanian Organizations. Journal of Economics, Finance and Accounting – (JEFA), 5(1), 11-17. http://www.pressacademia.org/journals/jefa
Dim, E., Okeke, M. C. & Nwankwo, A. (2020). Non-Financial Reward and Organizational Performance of Selected Manufacturing Firms in Anambra State. International Journal of Management and Entrepreneurship, 2(1), 77 – 91. https://www.ijmecoou.org/index.php/ijme
Duru, I. U., Eze, M. A., Yusuf, A., Danjuma, I. & Saleh, A. S. (2023). Relationship between promotion and employees’ performance: Evidence from the University of Abuja. Asian Themes in Social Sciences Research, 7(1), 1–9. https://doi.org/10.33094/atssr.v7i1.69
Fatima, S. A. (2021). Competitive reward system and employee performance. Rewards Driving an employee towards high performance. https://www.linkedin.com/pulse/competitive-reward-system-employee-performance-syeda-arooj-fatima
Fareed, Z., Ul Abidan, Z., Shahzad, F., e-Amen, U., Lodhi, R. N. (2013). The Impact of Rewards on Employee’s Job Performance and Job Satisfaction. Management and Administrative Sciences Review, 2(5), 431-442. http://www.absronline.org/masr
Griffin, M. A., Neal, A., & Parker, S. K. (2007). A new model of work role performance: Positive behaviour in uncertain and interdependent contexts. Academy of Management Journal, 50(2), 327–347.
Hermina, U. N., & Yosepha, S. Y. (2019). The Model of Employee Performance. International Review of Management and Marketing, 9(3), 69-73. https://doi.org/10.32479/irmm.8025
Hickenlooper, S. B., Richard, E. K., Blumenthal, S. G. (2022). Influence of Non-Financial Rewards on Performance of Employees in JPMorgan Chase & Company in USA. Journal of Human Resource & Leadership, 6(3), 37-46. https://doi.org/10.53819/81018102t5097
Hoque, A. S. M. M., Awang, Z. B., Siddiqui, B. A., & Sabiu, M. A. (2018). Role of Employee Engagement on Compensation System and Employee Performance Relationship among Telecommunication Service Providers in Bangladesh. International Journal of Human Resource Studies, 8(3), 19 - 37. https://doi.org/10.5296/ijhrs.v8i3.13081
Ibitomi, T., Ojatuwase, O., Emmanuella, O., & Eke, T. (2022). Influence of Intrinsic Reward on Employees’ Performance in Deposit Money Banks in Ondo State, Nigeria. Journal of Human Resource and Sustainability Studies, 10, 528-541. https://doi.org/10.4236/jhrss.2022.103032
Ibrar M., & Khan, O. (2015). The Impact of Reward on Employee Performance (A Case Study of Malakand Private School). International Letters of Social and Humanistic Sciences, 52, 95-103. http://dx.doi.org/10.18052/www.scipress.com/ILSHS.52.95
Jaleta, K. M., Kero, C. A., & Kumera, L. (2019). Effect of Non-Financial Compensation on the Employees’ Job Performance: A Case of Jimma Geneti Woreda Health Centres in Horro Guduru, Ethiopia. International Journal of Commerce and Finance, 5(2), 31-44.
Johnson, J. W. (2003). Toward a Better Understanding of the Relationship between Personality and Individual Job Performance. Personality and Work: Reconsidering the Role of Personality in Organizations, 83, 120.
Liu, W. & Liu, Y. (2022). The Impact of Incentives on Job Performance, Business Cycle, and Population Health in Emerging Economies. Frontiers in Public Health, 9. https://doi.org/10.3389/fpubh.2021.778101
Kabuki, S. W. (2019). Effect of Reward Management Strategies on Employee Performance in Impact Sourcing Companies in Kenya: Case of Cloud Factory Kenya Limited. Master’s thesis, Africa International University.
Kafayat. (2021). Importance of Employee Performance in Business Organizations. https://www.ropstam.com/importance-of-employee-performance-in-business-organizations/
Kampororo, D., Wafula, A., & Mwangi, F. (2021). Effect of reward system on employee performance in public institutions in Rwanda. A case of Rwanda Housing Authority. The Strategic Journal of Business & Change Management, 8 (4), 498 – 513. www.strategicjournals.com
Kathombe, M. W., Kipchumb S. & Kirui, K. (2018). Reward Management Strategies and Employee Performance in Selected Universities in Nakuru County, Kenya. Journal of Human Resource Management, 6(3): 95-102. https://doi:10.11648/j.jhrm.20180603.12
Kazi, A.G., Baloach, R.A., Khan, B.A. & Syeda, M. (2019). The Impact of Non-Monetary Benefits on Employee Performance in Commercial Banks of Hyderabad, Sindh, Pakistan. Journal of Economic Info, 6(3), pp.16–19. https://doi.org/10.31580/jei.v6i3.928
Kennedy, K. N., Lassk, F. G., & Burns, M. B. (2001). A scale assessing team-based job performance in a customer-oriented environment. Journal of Quality Management, 6(1), 257–273.
Koopmans, L., Berhnaards, C. M., Hildebrandt, V. H., Vet, H. C. W., & Berk, A. J. (2014). Construct validity of the individual work performance questionnaire. Journal of Occupational and Environmental Medicine, 56(3), 154–171.
Kolluru, M. (2020). Association between Rewards and Employee Performance: An Empirical Research on Omani Banks; Virtus Interpress: Sumy, Ukraine, 161–166.
Kushwaha, H. (2018). Impact of Financial and Non-Financial Incentives on Employee Productivity. Review of Business and Technology Research, 15(1), 21 - 23.
Kuya, J. A., & Kalei, A. (2022) “Influence of Financial Incentives on Employee Performance in Ferry Service, Mombasa County”, East African Journal of Business and Economics, 5(2), 38-52. https://doi:10.37284/eajbe.5.2.1024
Kamwenji, R. W., Ngugi, P. K., & Kamaara, M. (2019). Influence of Non-Financial Rewards on Employee Performance in the State Corporations in Kenya. International Journal of Management and Commerce Innovations, 7(2), 214-218. www.researchpublish.com
Kamwenji, R. W., Ngugi, P. K., & Kamaara, M. (2022). Influence of Non-Financial Rewards on Employee Performance in the State Corporations in Kenya. Journal of Human Resource and Leadership, 2(2), 1-10.
Khan, M., Daniyal M., & Ashraf, M. Z. (2020). The Relationship Between Monetary Incentives and Job Performance: Mediating Role of Employee Loyalty. International Journal of Multidisciplinary and Current Educational Research (IJMCER), 2(6), 12-21. www.ijmcer.com
Krishnan, R., Loon, K. W., & Tan, N. Z. (2018). The Effects of Job Satisfaction and Work-Life Balance on Employee Task Performance. International Journal of Academic Research in Business and Social Sciences, 8, 652-662. https://doi.org/10.6007/IJARBSS/v8-i3/3956
Krishnamoorthy, L., Muthuveloo, R., & Ping, T, A. (2020). The Impact of Non-Financial Incentives on Intention to Stay: A Study Among Nurses in Private Hospitals in Malaysia. The Malaysian Journal of Nursing, 12(1), 123 - 134. https://doi:10.31674/mjn.2020.v12i01.015
Lema, W. (2020). The Effect of Reward on Employee Job Satisfaction: The Case of Ethiopian Wildlife Conservation Authority. Master’s thesis, St. Mary’s University.
Luzon, A.Z. (2022). Effects of Performance-Based Bonus on Employees’ Productivity and Motivation in a State College, Philippines. International Journal of Educational Sciences, 36(1 - 3), 41-53. https://doi.org/10.31901/24566322.2022/36.1-3.1207
Mugaa, L. G., Guyo, W., & Odhiambo, R. (2018). Influence of Financial Reward on Employee Performance in Large Commercial Banks in Nairobi City County in Kenya. Journal of Human Resource & Leadership, 2(2), 39-55. https://stratfordjournals.org/
McGregor, L., & Doshi, N. (2017). There Are Two Types of Performance — but Most Organizations Only Focus on One. Employee Performance Management. Harvard Business Review. https://hbr.org/2017/10/there-are-two-types-of-performance-but-most-organizations-only-focus-on-one
McCook, K. D. (2002). Performance management system in organizations (Unpublished doctoral dissertation). Baton Rouge, LA, US: Louisiana State University and Agricultural and Mechanical College.
Mihalciuc, C. C., Grosu, M., Buzdugan, A. M., & Apostol, D. (2022). The Role of Non-Financial Factors in Ensuring an Adequate Firm Performance Measurement System. Ecoforum, 11(3), 1 - 8.
Miriam, T. U. (2020). Effect of Intrinsic and Extrinsic Rewards on Employee Performance in Access Bank PLC Nigeria. Masters’ dissertation, Dublin Business School.
Mura, L., Gontkovicova, B., Dulova Spisakova, E., Hajduova, Z. (2019), “Position of Employee Benefits in Remuneration Structure”, Transformations in Business & Economics, 18, (2), 156 - 173.
Myint, O. M., & War, D. Y. L. (2020). The Effect of Reward System on Employee Performance of KBZ Bank in Yangon. South East Asia Journal of Contemporary Business, Economics and Law, 23(1), 338 – 349.
Ngwa, W. T., Adeleke, B. S., Agbaeze, E. K., Ghasi, N. C., & Imhanrenialena, B. O. (2019) Effect of Reward System on Employee Performance Among Selected Manufacturing Firms in the Litoral Region of Cameroon. Academy of Strategic Management Journal, 18(3), 1 – 16.
Ntirandekura, M., & Mushamba, W. A. (2022). Effect of Non-Monetary Rewards on Employee Performance in National Water and Sewerage Corporation Kanungu District, Uganda. International Journal of Academic Multidisciplinary Research (IJAMR), 6(5), 23-36. www.ijeais.org/ijamr
Noorazem, N. A., Sabri, S. M., & Nazir, E. N. M. (2020). The Effects of Reward System on Employees’ Performance. Jurnal Intelek, 16(1), 40 – 51. https://10.24191/ji.v16i1.362
Nursiti., Yulandari, S., Desnirita., Noviherni., & Hidayat., M. (2022). Rewards and Punishments for Employee Performance in the Bekasi Region. Organization and Human Capital Development (ORCADEV), 1(1), 13 - 26. https://journals.researchsynergypress.com/index.php/orcadev
Odunayo, H. A (2022). Effect of Organizational Reward System on Employee Performance in Selected Hotels in Lagos Metropolis, Nigeria. Saudi J Bus Manag Stud, 7(7): 206-221. https://DOI:10.36348/sjbms.2022.v07i07.002
Ogbu, K. C., Ewelike, U. E., & Udeh, O. J. (2020). The Effect of Reward Management on Employee Performance in Selected Private Sector Organization in Anambra State, Nigeria. IJRDO - Journal of Applied Management Science, 6(1), 17 – 33.
Ojo, S., Abdulazeez, A. O., & Blessing, P. (2021). Influence of Reward System on Employee Performance: A Case Study of Selected Manufacturing Firms, Osogbo Metropolis in Osun State. BERJAYA Journal of Services & Management, 16, 67-81.
Okeke, O. F., Ugwi, J. I., & Nebeife, D. O., & Ngige, C. D. (2020). Reward Management and Employee Performance in Selected Manufacturing Firms in Enugu State. International Journal of Management and Entrepreneurship (IJME), 2(1), 139 - 157. https://www.ijmecoou.org/index.php/ijme/article/view/25
Omar, S. N. Z., Cob, C. M. S. C., Sakarji, S. R., Thani, A. K. A., & Bakar, A. A. (2022). A Preliminary Study of Factors Influencing on Employee Performance. International Journal of Academic Research in Business and Social Sciences, 12(1), 1880–1891. http://dx.doi.org/10.6007/IJARBSS/v12-i1/12234
Omuya, J. M. (2018). The Influence of Compensation and Rewards on Employee Performance in Public Universities in Kenya. International Journal of Economics, Commerce and Management, 6(3), 700 - 736. http://ijecm.co.uk/
Orga, C. C., Mbah, P. C., & Chijioke, E. (2018). Investigating the Effect of Non -Financial Rewards on Staff Productivity in Shoprite Company, Enugu. International Journal of Academic Research in Business and Social Sciences, 8(9), 950–964. http://dx.doi.org/10.6007/IJARBSS/v8-i9/4669
Phan, T. K., Nguyen, H. T., Ha Dang, T., Tran, T. V. & Le, N. K. (2021). Non-financial factors affecting the operational performance of hospitality companies: Evidence from Vietnam. Problems and Perspectives in Management, 19(4), 48–62. https://doi.org/10.21511/ppm.19(4).2021.05
Parker, S. K., Williams, H. M., & Turner, N. (2006). Modelling the antecedents of proactive behaviour at work. Journal of Applied Psychology, 91(3), 636–652.
Pradhan, R. K., & Jena, L. K. (2017). Employee Performance at Workplace: Conceptual Model and Empirical Validation. Business Perspectives and Research 5(1), 1 – 17. https://DOI:10.1177/2278533716671630
Pradhan, M. N. (2022). Impact of Reward Systems on Employee Performance of Service Sector Institutions in Nepal. The Batuk: A Peer Reviewed Journal of Interdisciplinary Studies, 8(2), 1-13. https://doi.org.10.3126/batuk.v8i2.47008
Prasetiyo, E. (2019). The Effect of Reward and Punishment Leadership Style on Employee Performance Cv.
Prastiwi, D., Pujiono., Aisyaturrahmi., & Bon, A. T. (2019). Model of reward system toward the performance of public sector organizations. Industrial Engineering and Operations Management (IEOM), 2516 – 2525.
Rajgarhia, C. (2020). Monetary and Non – Monetary Incentives - Effect on Job Satisfaction of the Employees at Workplace. International Journal of Creative Research Thoughts (IJCRT), 8(11), 3367 – 3375. www.ijcrt.org
Rathnasekara, R. & Kumari, D. A. T. (2021). The Impact of Performance Evaluation and Reward System on the Employee Performance IN the State Electricity Sector in Sri Lanka. International Journal of Asian Social Science, 11(4), 209-229. https://DOI:10.18488/journal.1.2021.114.209.229
Riaz, H., Akhtar, C. S., & Aslam, R. (2018). Total Rewards and Employee Performance: Investigating the Mediating Role of Employee Motivation in Telecom Sector. Pakistan Administrative Review, 2(3), 342-356. https://nbnresolving.org/urn:nbn:de:0168-ssoar-60666-3
Rusdiana (2018), Effect reward and punishment on employee performance in BRI Syariah Bank Ponorogo Branch.
Sabatini, E. M., Putra, B. A., Tridayanti, H., & Damayanti, E. (2021). The Effect of Financial Compensation & Non-financial Compensation on Employee Performance at PT Pelabuhan Indonesia III (Persero) East Java Region. International Journal of Integrated Education, Engineering Business, 4(2), 87 - 96.
Saputri, N, M, N. (2022). The Influence of Non-Financial Compensation, Training, Promotion and Mutation on Employee Satisfaction and Performance at BPJS Health in Bali. JUSTBEST: Journal of Sustainable Business and Management, 2(1), 11-19, https://doi.org/10.52432/justbest.1.2.2021.59-70
Saunders, M., Lewis, P. & Thornhill, A. (2019). Research Methods for Business Students. 8th ed. United Kingdom: Pearson.
Schepers, J. M. (2011). The construction and evaluation of a generic work performance questionnaire for use with administrative and operational staff. SA Journal of Industrial Psychology, 34(1), 10–22.
Salman, A., & Olawale, Y. (2021). Effect of Reward System on Employees’ Productivity: A Study of Guaranty Trust Bank Ilorin Metropolis. Journal of Management and Social Sciences, 10(3), 1128 – 1143.
Sharma, K. (2021). The Role of Financial and Non-Financial Incentives on Employee Performance in NIC Asia BANK AND GLOBAL IME BANK. Master's dissertation, People's Campus.
Shukla, D., & Solanki, U. (2018). Impact of Incentives on Employees’ Performance: A Case Study on International Women Polytechnic, New Delhi. International Journal of Business Quantitative Economics and Applied Management Research, 4(11), 81 – 89.
Silitonga, E. W., & Sadeli, J. (2020). Factors contributing to employee performance. In Contemporary Research on Business and Management: Proceedings of the International Seminar of Contemporary Research on Business and Management (ISCRBM 2019), 27-29 November, 2019, Jakarta, Indonesia (p. 15). CRC Press.
Sittenthaler, H. M. & Mohnen, A. (2020). Cash, non-cash, or mix? Gender matters! The impact of monetary, non-monetary, and mixed incentives on performance. Journal of Business Economics, 90:1253–1284. https://doi.org/10.1007/s11573-020-00992-0
Siwale, J., C. Hapompwe, C., Kukano, C. & Chonya S. D. (2020). Impact of Reward System on Organisational Performance: A case study of Brentwood Suppliers Limited in Lusaka, Zambia. International Journal of Scientific and Research Publications (IJSRP), 10(7), 281–286. https://doi.org/10.29322/ijsrp.10.07.2020.p10335
Supraja, G. (2020). The Effect of Financial and Non-Financial Compensation on Performance of Employees. The International Journal of Business Management and Technology, 4(4), 35 - 39. www.theijbmt.com
Tamunomiebi, M. D., & Oyibo, C. (2020). Work-Life Balance and Employee Performance: A Literature Review. EJBMR, European Journal of Business and Management Research, 5(2), 1 – 10. http://dx.doi.org/10.24018/ejbmr.2020.5.2.196
Thompson, M. (2020). Financial vs Non-Financial Gifts and Workers’ Performance: An Experimental Analysis of Reciprocity in the Workplace. Masters’ dissertation, University of Cape Town.
Wanjiru, M. S. & Waithaka, P. (2018) Influence of Recognition as A Non-Financial Incentive on Employee’s Job Performance at Equity Bank Limited, Mount Kenya Region, Kenya. International Journal of Business and Management Invention (IJBMI), 07(02), 67–72. www.ijbmi.org
Waithira K. M. & Obere, E. (2018). Effects of Rewards Strategies on Employee Performance of Farm Concern International, Kenya. International Journal of Current Aspects in Human Resource Management (IJCAHRM), 1(2), 179-193. www.ijcab.org
Yadav, P. & Saini, R. (2022). Enhancing Employee Performance Through Monetary and Non-Monetary Incentives. International Journal of Advanced Research in Commerce, Management & Social Science (IJARCMSS), 5(3), 201-204.
Zafar, S. V., & Sudiardhita, B. M. (2022). Reward and Compensation Management on Performance of Health Care Workers in India. Journal of Human Resource & Leadership, 6(4), 1-10. https://doi.org/10.53819/81018102t50108