Impact of Rewards on Employees’ Motivation: A Study of a Pakistani Firm

Abstract

Employees are highly valuable asset for an organization. It is important for an organization to keep their employees happy, satisfied and motivated as motivated work force can help organizations in achieving the strong competitive edge and tremendous profitability. Reward management is a tool that organizations use in order to attract, retain and motivate their employees as reward is counted as a major reason behind employee motivation. This study is conducted to analyze the impact of rewards on employee motivation. The study follows quantitative research approach. Reward is taken as independent variable whereas employee motivation is taken as dependent variable. The study aims to highlight the relationship between these rewards and employee motivation. 100 questionnaires were distributed among the employees out of which 93 questionnaires were returned back with response. The figures and results show that there is a positive association between motivational factors and different types of reward offered to employees. The study implies rewards provided to the employees are increased then an equivalent improvement can be observed in the employee motivation and satisfaction. The article also provides some necessary recommendations to enhance employee motivation through effective reward system.

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