The rewards system is one beneficial policy for employees, encouraging them to improve and maintain their general health and job performance (15). However, the area where Saudi industrial sector companies are lacking is in providing additional monetary rewards for professionalism. However recognition rewards for small behavioral adjustments, such as being on time, collaborating on a team, or minimizing mistakes, can encourage average performers to improve. Therefore, both incentives are important when trying to motivate employees and we need leaders to create an environment for the employees that enables them to feel motivated toward work (84). doi: 10.1111/j.1468-2508.2006.00404.x, 76. These create motivation among them to work hard within the organization. Researchers want to explain the perception of employees regarding incentives, healthcare, employee loyalty, leadership, and job performance in the language of statistics and mathematics. The questionnaire was based on the Likert type scale. %PDF-1.7 In [. They were satisfied with their jobs because they had opportunities for personal healthcare, development, and to use strengths that helped them in achieving their work objectives (31). Please let us know what you think of our products and services. For testing Hypotheses 3 and 4, the beta coefficient 0.119 at a significance level of 0.045 <0.05 in Table 6 shows that transformational leadership does moderate employee loyalty incentives and job performance. The positive or negative feelings of employees might later determine employee loyalty and eventually affect their performance. Job performance is defined as a certain behavior that organizations expect an individual to carry out. This focus was explored in the present study by identifying the responses of hospitals and physicians to the business cycle to examine the impact of incentives on job performance and health of workers in public and private sector hospitals in Shandong, Eastern China. The research design provides an outline for research. ; Garca-Mora, B. Luo T, Young R, Reig P. Aqueduct Projected Water Stress Country Rankings. Luthans, F. The contingency theory of management: A path out of the jungle. All claims expressed in this article are solely those of the authors and do not necessarily represent those of their affiliated organizations, or those of the publisher, the editors and the reviewers. Ogbonna E, Harris LC. One study mentioned that when there is a higher rate of unemployed in the country then the chances of the potential job loss become more, at that time the employer gives employees incentives to gain loyalty. J Qual Technol Manag. Karatepe, O.M. If one of them is missing, then employees will not be satisfied with their work and that dissatisfaction will lead to bad health and an increase in turnover. and S.A.; validation, I.G.A., M.A.K., M.F., A.A., S.A. and J.A. Feature papers are submitted upon individual invitation or recommendation by the scientific editors and must receive Gov Inf Q. Public service motivation, professional norms and/or economic incentives. A Study on the Effects of Some Reinforcers to Improve Performance of Employees in a Retail Industry. . (2013) 3:363. The goal is to ensure that employee The Impact of Rewards and Compensation on Employees' Performance (2020) XXIX:72236. This research work is a survey which makes use of a sample of 538 employees drawn from a population of 5146 employees of ten selected manufacturing firms within the Cameroon Littoral Region. <> Economic potential of generative AI | McKinsey Nabi G, Ullah S, Khan S, Ahmad S, Kumar S. China-Pakistan economic corridor (CPEC): melting glaciersa potential threat to ecosystem and biodiversity. Saudi Industrial Development Fund. Based on the discussed literature, we formulated a conceptual framework, shown in Figure 1. Allowing employees to contribute to corporate goals helps them feel connected to a broader purpose. Here are some statistics that help prove the value and impact of reward systems on employee performance, as well as company success. 57. Employees feel motivated by these rewards, which creates employee loyalty among them as they think organizations care about their contribution and their needs at the same time. Tracing Labor Market Outcomes of Technical and Vocational Training Graduates in Saudi Arabia: A Study on Graduates from the Technical and Vocational Training Corporation. Ha BTT, La Quang N, Mirzoev T, Tai NT, Thai PQ, Dinh PC. Nanjundeswaraswamy TS, Swamy DR. 2020. ; visualization, I.G.A., M.A.K., M.F., A.A., S.A. and J.A. The present study examined the impact of incentives on the healthcare of employees, their loyalty, and job performance. They also mentioned that future researchers can use different moderating variables in research. The current research aims to investigate the relationship between incentives/rewards, and employee performance through the mediating role of job satisfaction. endobj They also outline that different factors need to be encouraged that lead to employee engagement, such as the leadership styles, as employee engagement has a positive correlation with employee loyalty. The results demonstrated that there is an insignificant direct effect between incentives and rewards, and employees performance. J Polit. ; Nelson, J.A. An Investigation of the Structural Relationships among Employee Autonomous Motivation, Job Performance, and Satisfaction at International Hotel Chains in China. Some researchers believe that employee loyalty leads to job satisfaction. (2017) 28:24560. The data for this research were collected from primary and secondary sources. Sarin, S.; Mahajan, V. The effect of rewards structures on the performance of cross-functional product development team. Therefore, the study sample representation and implications are better compared to other sectors with narrow employment size and less effect to the overall economy. Dynamics of transit oriented development, role of greenhouse gases and urban environment: a study for management and policy. PDF Impact of Rewards and Recognition on Employee Motivation - IJCRT Stajkovic, A.D.; Luthans, F. A meta-analysis of the effects of organizational behavior modification on task performance, 19751995. Buttram, J.B. Theories in Social Psychology. https://doi.org/10.3390/su15043415, Subscribe to receive issue release notifications and newsletters from MDPI journals, You can make submissions to other journals. Saari, L.M. 68. Mich. Alliance Soc. This can also depend on the availability of human capital and when human capital is not easily available in the market, meaning the employer tries to gain employee loyalty by giving out benefits to retain talent in the organization (76). Droussiotis, A.; Austin, J. Ohunakin, F.; Olugbade, O.A. These factors crucially influence the efficiency and profitability of a firm. Incentives as Moderator. ]|Yn`] The table below showed that the majority of the significant values were <5%, which means the data are not normally distributed, but the table also shows that the p value in terms of nurses is significant and proves that data are normal (Tables 2, 3). doi: 10.24818/amp/2020.35-01, 80. 14 0 obj However, an absence of employee loyalty can create different issues like an increase in turnover rate among employees (71). Visit our dedicated information section to learn more about MDPI. Hussein, P.D.S.S. doi: 10.47577/tssj.v11i1.1503, 24. Annual Reports|Saudi Authority for Industrial Cities and Technology Zones (Modon). Hence, this research aims to investigate the mediating role of job satisfaction on the relationship between incentives and rewards systems and employees performance in Saudi Arabia. Raj, J.D. . Kumari, K.; Barkat Ali, S.; Abbas, J. This was the highest direct effect found for a relationship with a standardized coefficient of 0.91. The findings of this study are in agreement with [, The current study significantly demonstrated the importance of non-financial, moral incentives in achieving job satisfaction. Sittenthaler, H.M.; Mohnen, A. 4 0 obj Employee reward systems refer to programs set up by a company to reward performance and motivate employees on individual and/or group levels. In 2019 it was 1.4 billion and is growing at a rate of 0.43% (1). 50. BIM Adoption and Its Impact on Planning and Scheduling Influencing Mega Plan Projects-(CPEC-) Quantitative Approach. While this research focuses on how incentives can lead to employee loyalty and further contribute to job performance, this research also focuses on the impact leaders have on employee loyalty and job performance. Hoppock, R. Job satisfaction of psychologists. Whereas, an effective leader is someone who influences followers in such a way that leads to an organizational vision that sets an example by performing a job in such a way that inspires the followers. After applying these analysis tools several statistics were shown by the model such as the correlation matrix, which proved that a relationship among the variables used in the study exists. (2013) 48:31125. Alkandi, I.G. Beyond Baron and Kenny: Statistical Mediation Analysis in the New Millennium. The mean value of the job performance is 2.4948 with a standard deviation of 0.59176. interesting to readers, or important in the respective research area. They found out that loyalty was associated with intangible aspects. I have a drive to achieve more when I am motivated morally. 12 0 obj Noorazem, N.A. The present study makes three important contributions: First, the added value of the present study is that it avoids the traditional linkage in the Incentives and RewardsEmployees Performance relationship by highlighting the critical mediation effect of job satisfaction. The company provides bonuses for workers according to their roles and consistent with their level of performance. Moderating effects of governance on information infrastructure and e-government development. Mixed methodology: combining qualitative and quantitative approaches. Regional unemployment and employee loyalty: evidence from 12 UK regions. The focus of the research is on employees working in the Saudi Arabian industrial sector. This research will help in determining employees' perspectives regarding incentives and leadership and how they affect their health and loyalty toward the hospital as well as their performance. (2021) 217:107974. doi: 10.1016/j.ress.2021.107974. Gender and leadership style: a meta-analysis. Effect of leadership style, motivation, and giving incentives on the performance of employeesPT. Research has shown that benefits can impact job satisfaction, employee productivity, retention, and even creativity. JFIF C Corp Soc Responsib Environ Manag. 1. Every study is based on a certain population e.g., hospital sector, banking sector, or schools, but collecting data from such a huge number of people is impossible. Thus, it tries to describe the relationship between different variables, how they impact each other, and which variable has the most impact on the other variables. Available online: Rivera, N.; Azam, M.; Ajwad, M.I. doi: 10.17722/ijme.v9i2.917, 49. Some researchers have tried to explain incentives and employee loyalty from a different perspective. In Table 1 data are analyzed using SPSS software, which illustrates the total number of observations, arithmetic mean, standard deviation, the maximum and minimum value of each variable, which provides an entire description of the data used in the study. endobj The study mentioned that compensation and different social benefits have a greater impact on employee commitment rather than on retention (37). Task performance is defined as an employee's contribution toward the organization i.e., their technical competencies and job proficiency, whereas contextual performance is not linked with the formal job requirements of an employee (32). Delotte (2017), outlines that only about 36% of the financial industry are integrated in rewards system while 64% are not. and J.A. Mark Lett. Additionally, the study attempts to explain how the relationship between proposed variables works in Saudi cultural context, which differs than Western contexts where most of the previous studies have been conducted. In this fourth section of the current study, descriptive statistics will be explained, and Construct reliability is assessed using Cronbachs Alpha. Van Eerde, W.; Thierry, H. Vrooms expectancy models and work-related criteria: A meta-analysis. Pay Factors as Predictors to Satisfaction: A Comparison of Reinforcementy Equity, and Expectancy. Rev Argentina Clnica Psicolgica. J Bus Psychol. This study is important because it provides international evidence and indicators to understand the enforcements factors for motivation toward a high level of performance in the industrial sectors. Continuity of this success will enable the achievement of the national Saudi Vision 2030 program targets and goals. satisfaction level will be high. Symmetry (Basel). endobj Int J Manag Excell. Table 5 clearly shows that healthcare, monetary incentives, employee loyalty, and transformational leadership affect job performance. stream The standardized coefficient for the direct effect (H2b) of JS on PM is significant with ( = 0.74; Hypothesis 3 is supported. Ph.D. Thesis, The Open University of Tanzania, Dar es Salaam, Tanzania, 2015. To check the homogeneity of variances of the data collected, Levine's test of equality of error variances was applied (Table 4). doi: 10.1007/s10551-018-4015-y, 90. Some variables have more impact on other variables such as transformational leadership, which has a significant impact on the job performance and business cycle, whereas monetary incentives also impact job performance and population health, but this impact was lower than that of transformational leadership in terms of how job performance influences emerging economies. PDF Impact of Rewards System on Employee Motivation: A Study of a Taghian, M.; DSouza, C.; Polonsky, M. A stakeholder approach to corporate social responsibility, reputation and business performance. The data collected in the study were analyzed using SPSS software, regression, and ANOVA analysis techniques because we are measuring the direct impact of monetary incentives on job performance with employee loyalty as a mediator and transformational leadership as a moderator between job performance and employee loyalty. Leadership styles. In the deductive approach, the researcher first finds a theory related to the conceptual framework and then analyzes that data (10). 15. permission is required to reuse all or part of the article published by MDPI, including figures and tables. Some previous research found that the alignment of the reward system must follow the organization's design, otherwise, they send mixed messages (42). PDF Impact of Rewards on Employee Motivation of the Telecommunication A population is defined as a group of individuals that have certain skills, knowledge, or experiences required for research. Tech Note (2015). Employee job satisfaction and customer-oriented behavior: A study of frontline employees in the foodservice industry. [, Angari, A. Int J Dev Issues. Yilmaz K. Comparison of quantitative and qualitative research traditions: Epistemological, theoretical, and methodological differences. ; Bretz, R.D. The objective of the study. Bus. Eagly AH, Johnson BT. 34. In the past, employee loyalty was defined as the time an employee remains in an organization but due to the environmental changes during the pandemic, its definition was updated to the time an employee remains committed toward the organization and is said to be loyal. <> (2020) 163:15166. Each main variable is defined, and relationships between the main variables are derived. News D. Multi-Billion Rupees relief package approved (2020). The reason for using a quantitative method to collect data was to make sure that we gathered enough information from the sample, could easily compile data regarding employee perceptions, and easily analyze the data gathered. This is due to the fact that employees are so involved in their work that they forget to take care of their health. Do employees perceived compensation system influence turnover intentions and job performance? Find support for a specific problem in the support section of our website. Descriptive statistics are easy to understand for general readers and show the behavior of the data. Int J Manag. doi: 10.1007/s11356-021-12470-3, 23. 44. (1994) 50:111. ; Farouk, S. Determinants of organizational performance: A proposed framework. Furthermore, confirmatory factor analysis (CFA) was also performed to analyze different variables. Leaders also play a role in creating an environment that promotes the good health of employees and loyalty of employees leading toward job performance (10, 11). Scanlon, D.P. Coomber, B.; Barriball, K.L. 11 0 obj J Hum Resour Hosp Tour. ; Ferrel, O.C. 32. All authors are agreed on publication. The following supporting information can be downloaded at. This will help the government sector to adopt some techniques that are being used in the private sector and create a working environment that is more conducive to the health of employees, enabling them to be more productive. Chinazzi M, Davis JT, Ajelli M, Gioannini C, Litvinova M, Merler S, et al. 10 0 obj (2018) 25:320910. Masters Thesis, Naif Arab Academy for Security Sciences, Riyadh, Saudi Arabia, 1999. (2018). It can be described as behavioral engagement with an expected outcome, where behavior shows the action people perform to complete the work, outcomes exhibit the results of individual job behavior. Esen, E.; Besdil, G.E. Thus far, little research has been conducted on incentive and reward management systems and their impact on employee performance in the Saudi industrial sector. 3 0 obj 26. These motivational theories explain why incentives influence employee loyalty, leading toward employee performance. endstream Benefit Systems: How Rewards Affect Employee Behavior - Namely Leadership style is defined by the psychological latitude and the behavior they possess during interaction with employees or while they are handling their operations or activities (72, 73). 3. This study addresses two gaps as outlined in previous studies. 2023. Van Scotter, J.; Motowidlo, S.J. 2023; 15(4):3415. Job Performance. The sample was selected from full-time employees working in the largest region of the Kingdom, the Eastern Region, where the diversity of the industry provides a good representation of the whole country. \IfRKe},DIN&L Clustering is a useful method of collecting data and discovering different groups of respondents that represent the population. Rewarding tangible results, like sales goals or customer retentions, is relatively straightforward and something that top performers strive for. Another limitation of our study is that it is quantitative and only describes the relationship between different variables. The study attempts to further our understanding of the reward relationship with performance by testing job satisfaction as a mediator to this relationship. p. 1222. ; Deci, E.L. Intrinsic and extrinsic motivation from a self-determination theory perspective: Definitions, theory, practices, and future directions. Financial rewards mean those which satisfy the employees by providing rewards in terms of money. The questionnaires consisted of close-ended questions. This research was conducted in public and private hospitals in Shandong Province, Eastern China. Leadersh Q. In the hierarchy of needs (1954), Maslow concluded that humans have five basic wants (physiological, safety needs, love, and belonging, self-esteem, and self-actualization), which can be satisfied through financial incentives and rewards. 70 Articles, This article is part of the Research Topic, https://doi.org/10.3389/fpubh.2021.778101, https://www.reuters.com/article/us-blackstone-group-wind-farm-china-thre-idUSKCN0YZ1DC, https://www.nih.org.pk/events/2020/01/nih-arranged-an-awareness-lecture-regarding-ncov-2019-for-health-professionals, Creative Commons Attribution License (CC BY). 1. Calderon J, Baker R, Wolf K. Focus groups: a qualitative method complementing quantitative research for studying culturally diverse groups. Therefore, monetary incentives increase the motivation of employees leading to increased job performance (78). 1.3.Research Questions 1.4.The Objective of the study 1.4.1.General Objective . Jadallah, M. The Impact of Incentives in Raising the Efficiency of Workers. Organizations try to motivate their employees by either providing them with a good healthy working environment and in this case, with a leader who will make sure that the working environment motivates an employee to increase loyalty and job performance. Organizations try to avoid layoffs and at that time they need more loyal employees and for that purpose, they provide stronger incentives. (2006) 1:666. Deserved promotions are provided consistently in the company I work for. The central concern of this research is to examine the impact of reward systems as a motivation tool for employee's performance in the financial industry in Ireland. Some researchers believe that incentives are used by employers to trigger and influence the motivation of employees (38). The researcher has also talked about different research that has claimed that employees growing value is much more on extrinsic rewards and they are not motivated by the charisma of any kind of leader as they want to seek outcome. An innovative framework for risk management in construction projects in developing countries: evidence from Pakistan. Zingheim PK, Schuster JR. Best practices for small-team pay. [ 11 0 R] In this section, two hypotheses are developed based on the literature review, with a focus on defining the relationships between the three variables. PDF EFFECTS OF REWARD SYSTEM ON EMPLOYEES PERFORMANCE - University of Nairobi Hum. ; Sabri, S.; Nazir, E.N.M. It states the error between observed and predicted values are normally distributed. doi: 10.1108/17471111111141549, 94. In the past, different researchers have conducted studies on incentives and how they are linked to employee motivation, influencing emerging economies. Corporate social responsibility, firm value and financial performance in Brazil. To facilitate this investigation, it was hypothesized: The current research aims to explore the relationship between incentive/rewards and employees performance through the mediating role of job satisfaction in the Saudi context. Kuniya T. Prediction of the epidemic peak of Coronavirus Disease in Japan, 2020. A Feature <>/ExtGState<>/Font<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/MediaBox[ 0 0 595.32 841.92] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>> Table 4. What is your level of satisfaction with regard to financial incentives provided by your company? Ahmad M, Hu JL, Hadzima-Nyarko M, Ahmad F, Tang XW, Rahman ZU, et al. A study showed that if the banking sector continued to provide proper compensation, training, and appraisals then the employees will remain committed to the organization and the chances of turnover will also be less. (2020) 11:16579. Hence, the null hypothesis has been rejected and an alternate hypothesis is accepted. Opinions and aspirations are respected in the company I work for. Furthermore, the beta coefficients from the model were used to prove each hypothesis separately. Moreover, examining this dynamic relationship in the Saudi context, where there is a dearth of research, might uncover the influence of cultural context when compared with results from the dominant Western-based research. Different leadership styles might have a different relationship with job performance depending upon the situation or the context that employees and supervisors are in. (2020) 17:3125. doi: 10.3390/ijerph17093125, 69. The impact of corporate behavior on perceived product value. Job satisfaction and the general health of employees are important variables when it comes to employee loyalty. Available online: Lin, C.-P.; Joe, S.-W. To Share or Not to Share: Assessing Knowledge Sharing, Interemployee Helping, and Their Antecedents Among Online Knowledge Workers. Factor influencing employees loyality towards organisation: an empirical investigation at educational institutions in dehradun. enhancement of employee performance to achieve high level of productivity and customer satisfaction [11]. The sample taken for this study is forms of hospital staff i.e. Dowling, B.; Richardson, R. Evaluating performance-related pay for managers in the National Health Service. Asare ED. (BCESUJ), Introducing LISREL: A Guide for Structural Equation Modelling, Assessment of Energy Efficiency in the European Union Countries in 2013 and 2020, Active Learning: A Review of European Studies of Active Lessons, Economic and Business Aspects of Sustainability, https://www.mdpi.com/article/10.3390/su15043415/s1, https://www.sidf.gov.sa/en/Pages/AnnualReport.aspx, https://www.vision2030.gov.sa/v2030/vrps/nidlp/, https://www.worldbank.org/en/country/saudiarabia/overview, https://modon.gov.sa/en/MediaCenter/publications/Pages/AnnualReports.aspx, https://openknowledge.worldbank.org/handle/10986/36863, https://www.researchgate.net/publication/323184996, https://creativecommons.org/licenses/by/4.0/. In. There were similarities between the attitudes expressed by the participants in this study and those described by [. the editor(s) disclaim responsibility for any injury to people or property resulting from any ideas, (2003) 129:569. doi: 10.1037/0033-2909.129.4.569, 17. If they have a greater sense of entitlement, then they want to work hard to achieve goals. Job satisfaction mediates the relationship between incentives/rewards systems and employees performance. 1996-2023 MDPI (Basel, Switzerland) unless otherwise stated. The key point of the discussion is that this study provides helpful material for managers and employers to understand the behavior of employees regarding their job performance. 73. The three levels of the industrial sector in Saudi Arabia (primary, secondary, and tertiary sectors) are collectively regarded as a pillar of the economy, with great potential that offers attractive job prospects. MDPI. Eight motivational forces and voluntary turnover: A theoretical synthesis with implications for research. This loyalty will develop into a generalized emotional attitude toward that organization for which the employee is working (5659). Leadership can be defined by the behaviors employees possess and how they process their decision-making. endobj Speciell betoning stts p Maslows behovshierarki-modell, mlsttningsteorin och totala belningssystemet. Exploratory study of workplace bullying towards employee performance, job stress, and employee loyalty at PT. Impact of Employee Reward System on Organisational Performance Incentives and rewards have a positive influence on job satisfaction. Nevertheless, the study was able to find applicable relationships between different reward forms and employee performance through a mediating variable. (2008) 47:34369. Compensation, attraction, and retention. (2020) 22:275302. PDF The Impact of a Performance Appraisal and Reward System on Employee Various studies have also shown that employee loyalty is linked to customer services and developing customer loyalty to ensure long term profitability for the organization (73). Here, performance includes the outcomes of a particular job that an employee is performing at their workplace. PDF A Study on the Impact of Rewards and Recognition on Employee - IJSR Lee, Y.; Nam, J.; Park, D.; Lee, K. What factors influence customer-oriented prosocial behavior of customer-contact employees? ; Brannick, M.T. (2020) 11:35865. Organizations could increase employee loyalty by giving meaningful incentives to their employees. <> effective that it should provide. Front Psychol. The survey expanded to measure satisfaction with forms of moral incentives, other measurement instruments included in the survey section tested factors of relevance to the dependent variable, incentives and rewards, including deserved promotions, respect of opinions and aspirations, and provision of transportation allowance, all of which were >55% in agreement, which further establishes that companies in the industrial sector in Saudi Arabia provide competitive benefits to employees but that there is a need for further enhancement to remain competitive against the rapidly increasing competition leading in the sector.
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