IMPACT OF REWARDS ON JOB SATISFACTION

Abstract

This study seeks to examine the effect of rewards on job satisfaction of XYZ company. Approximately 300 workers are employed in this factory. The employees from the supervisor level up to the executive grades are selected for this study. Currently due to the COVID-19 pandemic and economic crisis, the management has their full attention on how the present rewards effect on the job satisfaction. The rewards play an important role in facing various competitors in the industry, manufacturing a high-quality product and retaining the key employees. This research is focused on the factors which the management has their attention on. The objectives of this research study were to identify the effect of rewards on employees’ job satisfaction, to study the existing reward system, to understand any lapses in the existing reward system and to make recommendations to improve the lapses in the existing reward system. A total number of 100 questionnaires were distributed to employees of the XYZ Company and a total number of 61 employees completed the questionnaire properly. Two intrinsic rewards and two extrinsic rewards were considered as the four factors which will affect job satisfaction. The two intrinsic rewards are job autonomy and environment whereas the two extrinsic rewards are base pay and working hours. Logistic regression modelling and Pearson’s correlation were done determine the relationship between the job satisfaction and rewards. Through the Pearson’s correlation it was found that there are positive relationships between base pay and job satisfaction, working hours and job satisfaction job anatomy and job satisfaction, whereas the relationship between environment and job satisfaction was not significant. The relationships between base pay and job satisfaction, job anatomy and job satisfaction and working hours and job satisfaction was found to be significant which means that the job satisfaction could be increase by considering these three variables. It was found that job anatomy was significant with working environment, base pay and working hours, working environment was significant with job anatomy and working hours, base pay was significant with job anatomy, working hours were significant with job anatomy and working environment. Through the logistic regression, it was found there is a significant effect of rewards on job satisfaction. Through the overall research study, it was found that base pay and working hours has considerable effect on job satisfaction.