Testing Mediating Effect of Job Satisfaction on the Relationship between Rewards and Employees' Loyalty

Abstract

The present study analyzed the impact of job satisfaction on the relationship between rewards and loyalty among the life insurance sale staff in Jaffna district. The main objectives of the study were to find out the mediating effect of job satisfaction on the relationship of monetary rewards and loyalty and to find out instrumental value of the monetary rewards system on loyalty of sales staffs of the insurance companies All the analysis was made by using the responses of eighty seven employees of four private sector insurance companies. Two hypotheses were set out for the study. H1 was there is a strong positive relationship between monetary rewards and loyalty. H2 was job satisfaction works as mediator in the relationship of monetary rewards and loyalty. The study found there is a low positive relationship between monetary rewards and loyalty (0.225) and job satisfaction fully mediated the relationship between monetary rewards and loyalty.

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