The Impact of Financial Rewards on work Motivation of Operational Level Employees: Evidence from a Leading Manufacturing Organization in Sri Lanka

Abstract

In any organization, financial rewards play a significant role in boosting and sustaining the work motivation of employees, which ensures employee performance. The direct effect of financial rewards on the work motivation of various types of employees is widely studied and reported. Empirical evidence and theoretical explanations are inconsistent in the literature. Therefore, it remains yet to be investigated further across different domains in the corporate atmosphere. This study was conducted to assess the impact of financial rewards on the work motivation of operational level employees in manufacturing organizations. The study was carried out as a cross-sectional, quantitative field study among a sample of 100 operational level employees, randomly selected from a manufacturing organization in Sri Lanka. The primary data was collected via a standard questionnaire which was reported as valid and reliable in previous studies. Findings show that financial rewards have a significant and a positive association (r = 0.680) with the work motivation of operational level employees in manufacturing organizations. Further, findings reveal that 46.3% variation in employee work motivation (r2 = 0.463) is significantly affected by financial rewards. Moreover, financial incentives are found to be the most influential type of financial reward in determining the work motivation of operational level employees. Hence, it is recommended to manage and manipulate financial rewards to motivate employees to gain positive individual performance.

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