The Impact of Extrinsic and Intrinsic Rewards on Employee Satisfaction: Towards a Reward Management Plan

Authors

  • Caifen Wang
  • Lizelle Eugenio- Villanueva

DOI:

https://doi.org/10.54097/m4626y62

Keywords:

Intrinc Rewards, Extrinsic Rewards, Job Satisfaction

Abstract

This study evaluated how extrinsic and intrinsic could potentially impact the levels of employee satisfaction at Y College, in order to suggest inputs for reward management strategies. The study involved 69 non-teaching staff members from Y College, representing the entire population of interest. The researcher employed total enumeration, ensuring ethical standards and rigorous data collection and analysis for all participants involved in the study. The goal of this research was to propose a reward management plan incorporating Herzberg's Two Factor Theory of Motivation that could enhance employee satisfaction. Based on the conclusions derived in this study, the following are the recommendations: (1) Offer flexible work arrangements, considering the significant number of female employees balancing work and family responsibilities. (2) Implement diverse recognition programs alongside cash rewards, including employee of the month awards, team-based incentives, and non-monetary rewards like extra time off or professional development opportunities. (3) Maintain consistency and transparency in reward systems across all employees, irrespective of demographic variables. (4) Foster a culture of appreciation by celebrating achievements, milestones, and performance -based incentives. (5) Address gender gaps in job satisfaction through gender-sensitive policies, support resources, diversity promotion, regular monitoring, training, and leadership commitment to gender equality. (6) Align reward systems with organizational objectives and values, acknowledging individual preferences and career goals. (7) Adopt the proposed Rewards Management Plan to integrate both hygiene and motivator factors, optimizing intrinsic and extrinsic rewards for enhanced employee satisfaction.

Downloads

Download data is not yet available.

References

Ali, A., Edwin, O., & Tirimba, O. (2015) Analysis of Extrinsic Rewards and Employee Satisfaction: Case of Somtel Company in Somaliland. International Journal of Business Management and Economic Researchm (IJBMER), Vol 6(6),2015, 417-435. ISSN:229-6247.

Alkandi, I. G., Khan, M. A., Fallatah, M., Alabdulhadi, A., Alanizan, S., & Alharbi, J. (2023). The Impact of Incentive and Reward Systems on Employee Performance in the Saudi Primary, Secondary, and Tertiary Industrial Sectors: A Mediating Influence of Employee Job Satisfaction. Sustainability, 15(4), 3415. MDPI AG. Retrieved from http://d x.doi.org/10.3390/su15043415.

Liu, W., & Liu, Y. (2022). The Impact of Incentives on Job Performance, Business Cycle, and Population Health in Emerging Economies. Frontiers in public health, 9, 778101. https://doi.org/10.3389/fpubh.2021.778101.

Angima, C.B., & Mwangi, M. (2017). Effects of underwriting and claims management on performance of property and casualty insurance companies in East Africa. European Scientific Journal, 13(13), 358.

Anser, M. K., Ali, M., Anwar, F., & Usman, M. (2020). Subjective age and job satisfaction: A moderated mediation model of job burnout and chronological age. Frontiers in Public Health, 8. https://doi.org/10.3389/fpubh.2020.00062.

Forson, J.A., Ofosu-Dwamena, E., Opoku, R.A. et al. (2021). Employee motivation and job performance: a study of basic school teachers in Ghana. Futur Bus J 7, 30 (2021). https://doi.org/10.1186/s43093-021-00077-6.

Hee, O. C., Shi, C. H., Kowang, T. O., Fei, G. C., & Ping, L. L. (2020). Factors influencing job satisfaction among academic staffs. International Journal of Evaluation and Research in Education, 9(2), 285. https://doi.org/10.11591/ijere.v9i2.20509.

Kerketta, V. & Chauhan, S. (2023) Impact of Reward and Recognition on Job Satisfaction and Motivation. JUN 2023. IRE Journals. Volume 6 Issue 12. ISSN: 2456-8880.

Lawal, A. A., Akingbade, W. A., & Ojodu, H. O. (2019). An Examination of Governance Typology in Nigeria Higher Education System. International Journal of Economic Behavior (IJEB), 9(1), 137-163.

Manzoor, F., Wei, L., & Asif, M. (2021). Intrinsic rewards and employee’s performance with the mediating mechanism of employee’s motivation. Frontiers in Psychology, 12. https://doi.org/10.3389/fpsyg.2021.563070.

Mia, Hasan (2021). Assessment of Intrinsic and Extrinsic Rewards On Employee Performance: A Study of Garments Industries in Bangladesh. Business Studies Journal, Volume 13, Issue 3, 2021.

Ngwa, W.T., Adeleke, B.S., Agbaeze, E.K., Ghasi, N.C., & Imhanrenialena, B.O. (2019). Effect of reward system on employee performance among selected manufacturing firms in the Litoral region of Cameroon. Academy of Strategic Management Journal, 18(3), 1-16.

Spence, M. (2022). Working Our Way to Job Satisfaction.

Downloads

Published

27-05-2024

Issue

Section

Articles

How to Cite

Wang, C., & Villanueva, L. E.-. (2024). The Impact of Extrinsic and Intrinsic Rewards on Employee Satisfaction: Towards a Reward Management Plan. Journal of Education and Educational Research, 8(3), 505-518. https://doi.org/10.54097/m4626y62