Impact of Reward on Employees’ Performance

Abstract

Rewards are one of the important elements to enhance performance of employees This study investigated the impact of rewards on employees’ job performance. Rewards were looked at from the perspective of financial non financial rewards. The objectives of the study was to identify the relationship between reward and employees performance, to examine the impact of rewards on employees performance and to examine whether which type of reward (financial or non financial) is more influencing on employees’ performance. Financial and non-financial rewards were the two independent variables of this study and employees’ performance was the dependent variable. Financial rewards were measured by four sub variables including base pay, performance base pay, transport allowances, and Bonuses. Responsibility, supervisory support, autonomy and recognition were the sub variables of non financial rewards. Employees’ performance was measured using eight sub variables such as production, absenteeism, criticisms, accidents, mistakes, number of damages. This is a survey type research the sample consisted of randomly selected eighty Machine Operators from an Apparel sector organization. Collected data was mainly analyzed using correlation analysis and regression analysis. Results revealed that both financial and non financial rewards are significantly positively influencing for employees’ job performance. Further, the study found that that non financial rewards are significantly more influencing than financial rewards in determining the employees’ performance.