Investigating the relationship between intrinsic rewards and employee motivation.

Abstract

ABSTRACT With the advent of a highly competitive global business environment, a new generation of workers are now entering the marketplace who have a different set of expectations from their predecessors. Organisations have recognised that the use of extrinsic rewards in insolation is no longer effective in retaining and motivating its workforce. To strategically respond to these changing circumstances, an organisation must review its strategy on rewards and retention. This is achieved by strategic introduction of intrinsic rewards into the performance management system of the organisation. The aim of this study was to determine if a relationship exists between intrinsic rewards and employee motivation at the logistics company in KwaZulu-Natal, and to further understand the preference of these intrinsic rewards to employee. This would then enable the organisation to better structure its rewards program in a manner that optimally motivates its employees, creating a performance driven culture. A sample of 108 employees of the logistics company in KwaZulu-Natal was drawn from a population of 170 employees. An internet based questionnaire developed by the researcher was used to collect data. The data collected was analysed using descriptive and inferential statistics, and relationships were revealed. Some of the salient findings reflected that employees categorically indicated that intrinsic rewards were important to them, and that such rewards have a positive motivational effect on them. While a large proportion of employees indicated satisfaction with the current level of intrinsic rewards in the organisation, a substantial portion of the sample indicated either dissatisfaction or feelings of indifference which is indicative that areas of improvement are existent. Majority of the employees indicated that the frequency of intrinsic rewards in the organisation is an important factor in the decision making process when considering alternative employment. It is recommended that the organisation should incorporate training and development on intrinsic motivation and employee engagement into their management development programs. It is also recommended that a uniform approach to intrinsic reward implementation should be avoided and that the organisation should implement intrinsic rewards directed to each employee at the level at which the employee identifies and appreciates, enabling optimal effectiveness of the rewards program. This can be achieved through successful integration of intrinsic rewards with that of the organisational performance management system. The empirical findings provide a useful starting point for recommendations from which further research may be undertaken, so that inferences can be deduced on a larger population across varying sectors and regional geographies.