Influence of Extrinsic Rewards on Employee Job Satisfaction Private Banking Sector of Sri Lanka

Abstract

In today's competitive marketplace, each organization strives to be competitive by using the capabilities, skills and knowledge of its employees. Rewards is one of the most important elements to motivate employees to contribute their best effort to generate innovative ideas that lead to better business functionality, and to further improve company performance both financially and non financially. In general, banks use rewards to satisfy their employees for a higher level of productivity. Previous research findings have revealed that satisfied employees are more engaged and loyal to organizations compared to other employees. The main intention of this research study is to ascertain the influence of extrinsic rewards (i.e. salary/pay, bonuses, fringe benefits, promotions) on job satisfaction of the private banking employees. Data was collected from 250 full time employees, who were randomly selected from the southern region of Sri Lanka, through a structured questionnaire. Collected data was analysed using the Alpha test, correlation and regression through IBM SPSS 23 to understand the relationship. The result indicates that there is a statistically significant relationship between extrinsic rewards and employee satisfaction. Further, it shows that extrinsic rewards have a positive influence on employee satisfaction.