Impact of Monetary and Non-monetary Rewards on Employee Performance

Abstract

This research paper explores the impact of monetary and non-monetary rewards on employee engagement and its subsequent effect on organizational performance. The study utilizes a sample of 50 employees from Gwadar, Balochistan. The researcher employed a closed-ended questionnaire for data collection. The data was analyzed via Smart PLS using Partial Least Square Structural Equation Modeling. The research findings revealed the respondents' demographic profile and demonstrated the data's reliability, convergent validity, and discriminant validity. Hypothesis testing and regression analysis supported the mediating relationships between rewards, employee engagement, and organizational performance. The results emphasize the significance of both monetary and non-monetary rewards in promoting employee engagement, retention, and productivity, ultimately contributing to organizational success.