THE INFLUENCE OF REWARDS SYSTEMS ON EMPLOYEE PERFORMANCE OF SRI LANKAN FINANCIAL INSTITUTIONS

Abstract

Rewards systems of a company is a key factor that affects employee performance. According to the literature review, different individuals have different perceptions of rewards. A brief analysis of the economy in any country shows that financial institutions play a significant role in the financial system and the economy as a whole. The main objective of this study was to examine the influence of rewards systems on employee performance in financial institutions in Anuradhapura, Sri Lanka. Independent variables of this study were extrinsic rewards, social rewards and intrinsic rewards. Employee performance was the dependent variable. The researcher developed three hypotheses in order to achieve research objectives. Samples of 100 respondents were selected and primary data was collected using a standard questionnaire. Regression was used to test the hypothesis and statistical analysis was performed with the assistance of SPSS 21.0. The research concluded that extrinsic rewards, social rewards and intrinsic rewards have a significant positive influence on employee performance in financial institutions in Anuradhapura, Sri Lanka.