The Effect of Financial and Non-Financial Rewards on Employee Performance

Abstract

Employee performance is substantial to any organization as it drives the business for success or failure. Thus, researchers continuously focus on conducting studies around this phenomenon. Though there are several studies on employee performance, there are still debates on how financial and non-financial rewards impact on employee performance. Hence, this study investigates the effect of financial and non-financial rewards on employee performance of employees at Emjay Penguin (PVT) Ltd. With the support from previous theoretical models and literature, the researcher has developed hypotheses, and used a personally administered questionnaire developed using standard measures ensured the reliability and validity. An exploratory cross sectional quantitative research design is applied to a sample of 90 respondents. Correlation and multiple linear regression analysis are used to test seminal theory that predict relationships between financial and non-financial rewards on employee performance. Findings revealed that financial and non-financial rewards have a significant positive relationship with employee performance where non-financial rewards have slighter higher impact than financial rewards on employee performance.