THE EFFECT OF REWAED ON EMPLOYEE’S MOTIVATION: THE CASE OF MERCIMOY INDUSTRY AND COMMERCE PLC

Abstract

The purpose of this study is to investigate the effect of rewards on employees’ motivation at Mercimoy Industry and Commerce PLC. The study used explanatory research designs. Data were collected through structured, closed-ended questionnaires and interviews with samples of 109 permanent employees through census sampling techniques. Data were analyzed using descriptive and inferential statistics with the aid of Statistical Packages for Social Scientists (SPSS) version 26. The multiple regression analysis technique was used to explain the effect of employee rewards dimensions, both extrinsic (such as payment, promotion, and supervision) and intrinsic (such as challenging and interesting jobs and employee autonomy), on employee motivation. The findings show that the mean value of all extrinsic and intrinsic reward dimensions is above average except payment and challenging and interesting jobs, and that there is a positive and significant correlation between reward dimensions and employee motivation. The multiple regression analysis result indicated that 67.9% of the variation in the employees’ motivation can be explained by the combination measures of payment, promotion, supervision, challenging and interesting jobs, recognition, and employee autonomy, and also demonstrated that payment, promotion, employee autonomy, and recognition all had a significant positive effect on employee motivation. Extrinsic and intrinsic rewards have a considerable and favorable effect on employee motivation at Mercimoy Industry and Commerce PLC, according to the results of the regression research. As a result, Mercimoy Industry and Commerce PLC management must focus on overall reward in order to improve employee motivation.