IMPACT OF NON-MONETARY REWARDS ON EMPLOYEES’ MOTIVATION: A STUDY OF COMMERCIAL BANKS IN KARACHI

Abstract

Purpose — This study is conducted to measure the impact of non-monetary rewards on employee's motivation in different banks in Karachi, Pakistan. The study aims to highlight the importance of the non-monetary rewards in terms of their effectiveness as well as efficiency. The study also will identify to what extent the banks are taking care of this source of employee motivation. Methodology/Sampling - The study follows a quantitative approach to achieve the objectives of this study, which is descriptive in nature. There are five independent variables taken for this study; training, recognition for performance, opportunities for career advancement, effective communication channels and job security to identify their impact over employees job related motivation. A standardized and well-structured questionnaire was used to gauge the responses on a five level scale. Questionnaire contents were adopted from Paul E. Spector employee recognition program handbook. The questionnaire was sent to 550 respondents through e-mail and in printed form. Data was analyzed using Statistical Package for the Social Sciences (SPSS). The descriptive statistics utilized was based on chi-square tests and graphical illustrations were used to provide information on key demographic variables in this study. Findings - The study confirmed existence of positive significant relationship between three of the five non-monetary rewards. The context against which the relationship of two independent variables i.e. training and performance recognition has not been found significant has been discussed in the findings. Practical Implications - This research can be helpful for HR managers in banking sector. They can design an effective compensation package to retain their competent employees. Management can improve the use of effective rewards and recognition system in the feedback process of their performance management system in order to motivate their employees.