International Journal of Business Research and Management
OPEN ACCESS | Volume 2 - Issue 1 - 2025
ISSN No: 3065-6753 | Journal DOI: 10.61148/3065-6753/IJBRM
Chidubem Akabogu1, Igwe Chijioke Paul1*, Omagbemi Toritsemotse Enonuya1, Ntow Rebecca Yirenkyiwaa1, Igwe Ejikeme Peter2
1Ulster University Business School London
2University of Westminster London Department of Professional writing.
*Corresponding author: Chijioke Paul, Ulster University Business School London.
Received: November 14, 2024
Accepted: November 18, 2024
Published: November 29, 2024
Citation: Chijioke Paul, Chidubem Akabogu, Igwe, Omagbemi Toritsemotse Enonuya, Ntow, Rebecca Yirenkyiwaa, Igwe, Ejikeme Peter, Chidubem Akabogu (2024) “Evaluation of the impacts of reward systems on motivating employee performance A case study of diginius company”. International Journal of Business Research and Management 1(3); DOI: 10.61148/IJBRM/07.1024
Copyright: © 2024 Chijioke Paul, this is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Human resources management trends in the ICT sector have cultivated modern organizations to restructure their reward systems in a way that effectively motivates employee performance, increases retention, and attracts more talent while cutting costs. However, this has become more challenging as a result of the post-pandemic effect, the growth of rapidly expanding tech businesses, and the shift towards hybrid workplace settings. This research work therefore, assessed how reward programs affect employees' motivation to perform in fast-tech companies using a hybrid workplace model in the United Kingdom ICT sector. The study used a quantitative descriptive methodology with primary data collected from closed-ended online surveys supplementing secondary data from academic literature to create study hypotheses. One hundred ordinary employees, supervisors, human resources, and senior management from the London-based Diginius Company made up the target population. Regression and correlation analysis were conducted to test the study hypotheses. Out of the 70 completed surveys, a 70% return rate was attained. The study found a significant and positive relationship between reward system variables and employee performance. The study concluded that organizations can cultivate an enthusiastic workplace by combining both intrinsic and external benefits. As a result, companies implementing these tactics should anticipate increased output, increased job satisfaction, and a stable competitive edge in the dynamic environment of the hybrid workplace.
1.0 Introduction:
Employee reward programs and motivation are, without a doubt the most essential and valuable resources in the competitive modern workplace setting. Hancock (2024) posits that adopting prompt employee rewards programs including recognition, professional development, and employee benefits function establishes a culture that motivates workers to perform at their highest level. This according to Rodjam et al., (2020) can subsequently result in greater staff engagement, employment satisfaction, as well as productivity. Workers are influenced significantly by the sort of reward. For instance, several researchers (Martinr and Uribe, 2021; Manzoor et al., 2021) have indicated that intrinsically motivated individuals are going to show dedication to their work when they perceive intrinsic rewards in a task. Similarly, individuals who are driven by extrinsic motivation will demonstrate commitment to their work to the degree that they can acquire or receive external incentives (Ali and Anwar, 2021; Park and Mezias, 2017; Mitchell et al., 2020). Therefore, while establishing an atmosphere that is productive and inspiring employees is an elaborate and diverse art, it contains a straightforward and highly efficient instrument that displays recognition, offering benefits, and provides avenues for development
According to a study by Asghar et al., (2021), employees who exhibit a high level of commitment to their organizations demonstrate a 20% improvement in performance and an 87% reduction in attrition rates. The importance of representative dedication to the success of the organization is delineated in this passage. Additionally, the investigation reveals that the highly connected employees outperformed the average staff by 20%. To further illustrate, the inquiry classified individuals according to their level of commitment as follows: disillusioned, agnostic, and true believers. 13%, 76%, and 11 percent of employees, respectively, were affected by the classifications as stated by Chelladurai and Kerwin (2017). It was argued that the "disaffected" staff members exhibited virtually no accountability and were, to put it mildly, unfortunate entertainers who often exerted minimal effort in their work.
Numerous sectors including the ICT sector in the United Kingdom witnessed a transition from in- office working environment to hybrid workplaces in early 2020. This shift was initiated by the nation's response to the COVID-19 pandemic as well as the swift advancement by developing tech-companies enabling remote work, including teleconferencing applications like Microsoft Teams as well as Zoom. The Office of National Statistics (ONS) report estimated that in 2019 approximately 12% of the overall workforce, or 4 million individuals, reported working from home following the COVID-19 pandemic. During this period many organisations did not consider hybrid to be normal. There were concerns regarding potential declines in productivity resulting from decreased managerial supervision and interpersonal interactions among colleagues (Szostek, Balcerzak, and Rogalska, 2023) Whereas preliminary research findings show support to the notion of transitioning to hybrid work arrangements whenever feasible, fast tech company leaders must modify their rewards systems to motivate employees by embracing this novel mode of interaction in the workplace.
1.1 Study Problem:
Employees fulfil a critical function in determining the success of the organization. The primary factor contributing to this is the management approach taken toward performance evaluation, recognition, and pertinent information as stated by Miller (2016). Employees constitute a substantial resource for any organization. The aforementioned outcomes are attributable to the evaluation, perception, and establishment of pertinent inspiration for how they are displayed. According to Karim et al., (2021), only 36% of organizations have implemented a rewards system, whereas the remaining 64% have not. Does the fact that incentives are so crucial in one portion raise any concerns regarding the absence of the system in all of them?
Chilala (2021) suggests that each strategic decision implemented by an organization is aimed at improving performance, whether at the personnel or organizational level, in order to maximize the positive outcomes that the company can obtain from its workforce. Thus, the primary responsibility of upper management, including the human resource manager, is to ensure that effective compensation, reward, and performance management schemes are critical in motiving and improving worker performance. Hower, due to the increased competitiveness of the business environment, managers recognize that in order to sustain their operations, they will require highly capable and skilled personnel, which is also limited in supply. Consequently, retaining such skilled labor is crucial for accomplishing administrative goals and objectives. It has been suggested that organizations that fail to implement efficient compensation schemes ultimately experience subpar performance. If this holds, then an explicit correlation can be observed between employee compensation and performance. When employees accomplish their designated tasks, the overarching objectives or targets of the organization are also met. Ndungu, (2017) posit that a substantial correlation exists between employee performance and rewards. This implies that the performance of an employee is contingent on the design, execution, and management of incentive programs.
Performance management entails establishing a conducive work environment or setting that empowers individuals to operate at their utmost capabilities. However, the effect of the implemented measures of Diginius Consulting Company's human management remains uncertain as to whether they were beneficial or detrimental. Thus, to understand and establish an effective employee rewards system, this research endeavors of various were unable to establish a correlation between employee motivation and performance. Furthermore, the majority of these studies relied exclusively on quantitative data. This research will address this deficiency by employing a combination of both quantitative data to evaluate the degree to which reward systems impact employee performance in the ICT sector.
1.2 Research Aim and Objectives:
This thesis main aim aims to evaluate the impacts of reward system on employee performance motivation. The specific objectives included.
1.3 Research Questions:
1.4 Literature and Conceptual Review:
The concept of employee reward has been extensively studied in organizational management research. Armstrong's (2010) study in line with the Chartered Institute of Personnel and Development standards suggests that the development of reward systems for employees has been an integral component of organizational administration and performance improvement.
Drawing from Perkins and Jones's (2020) study on strategic management, employee rewards have evolved and are aligned with the goals and aspirations of the institution. They govern the allocation of benefits and remuneration to staff as an expression of appreciation for their service to the company as indicated by Emmanuel and Nwuzor (2021). Furthermore, Sureephong et al. (2022) add that they are comparable to the specific initiatives implemented by organizations to recognize and reward employee achievement with the intention of stimulating and encouraging them individually or collectively.
Chemere (2021) asserts that for a reward system to be genuinely motivating, it must satisfy the following conditions: (a) the reward must have intrinsic value; (b) it must be of adequate magnitude to elicit an effect; (c) it must be clear and timely; (d) it must be economically viable; and (e) it must be comprehensible and timely. While Vogt (2023) proposes that the term "reward" encompasses any monetary or non-monetary component that functions as a motivating factor for a particular behavior. Sirkin and Cagney (2024) and Watto et al., (2023) in support found that executive compensation is not solely based on monetary considerations. It pertains to non-monetary incentives, whether extrinsic or intrinsic, that inspire employee behavior. Therefore, have become critical components in every organizational reward system globally.
1.5 Research Model and Hypothesis Development:
A conceptual framework, as defined by Afshar (2022) and Tamene (2016), is a graphical depiction that illustrates the interconnections between both independent and dependent variables. Based on the study object, this study conceptual framework displayed the correlation between the reward system and the performance of employees in the UK ICT sector using a case analysis of Diginius Company in London.
Figure 1: Conceptual Framework, (Research, 2024)
Four hypotheses were developed as follows.
H1: Recognition positively motivates employee performance
H2: Training positively motivates employee performance.
H3: Benefits positively motivate employee performance
H4: Extrinsic rewards positively motivate employee performance
This study’s hypothesis is explained in the empirical section providing valuable insights into the impact of reward systems on motivating employee performance.
1.6 Empirical Review: Relationship between Recognition and Worker Performance:
Employee recognition was identified as a significant global commitment driver (Agwu, 2013). It was confirmed that employees require constructive criticism and input in order to consistently progress. Zhang et al. (2022) quantitative analysis using 256 valid responses confirmed the hypothesis that the recognition scheme had a positive correlation with staff performance. The authors argued that recognition is crucial in developing pride and organizational citizenship behaviour among employees. Additionally, organizations incur no additional costs by profitably recognizing the increased effort of their workers, especially in high-pressure business environments. In the same way, the objective of the 180-response study by El Masri and Suliman (2019) was to deduce the extent to which Qatar's academic institutions have, so to speak, implemented these methods of leadership pertaining to employee rewards and handling talent. The results of the empirical investigation suggest that talent acquisition and employee recognition contribute to the organization's success and standing and exert a significant influence on employee performance.
In a study conducted to determine the effect of incentive and appreciation on the job satisfaction and drive of employees from public and private sector organizations in Pakistan, it was discovered that appreciation and rewards were significantly associated with motivation (Raza and Shaikh, 2023;Shahzad et al.,2023). They deduced that a compelling incentive prompted by the board would increase the motivation and accountability of representatives. These findings align with those of Charter and Tischner (2017), who conducted an inquiry involving 84 production directors, marketing directors, and executive directors from domestic machine companies in Iran to determine the effect of compensation framework instruments on new product development. The findings of their investigation revealed a substantial and quantifiable positive correlation between executive compensation and the development of new products.
1.7 Relationship Between Benefits and Worker Performance:
A paycheck plan may include incentives as an element of compensation, and employers may be cognizant of the various benefits the organization provides. Monetary incentives are essential for employee performance management, according to Murphy (2015), because they motivate people to execute a particular duty (Murphy, 2020). Ngwa et al. (2019), in their Cameroonia study utilizing 538 responses, found that profit-sharing programs had a statistically significant beneficial impact on staff dedication in production firms; negotiated reward systems had a significant positive effect on employee cohesiveness in manufacturing facilities firms; and uniform wage systems had a statistically significant positive effect on employee work values in manufacturing firms.
The Chartered Institute of Personnel and Development (2021) conducted a survey with over 16,000 responses to examine the repercussions of gain reward practice along with providing an evaluation resource for arising trends in the domains of compensation and financial wellbeing (CIPD, 2022). According to the findings, benefit incentive programs were utilized by 70% of reward experts in companies and 15% of those in the public and nonprofit sectors. A wide range of compensated holiday benefits, such as bereavement and maternity leaves, were identified as some of the most commonly used methods to inspire staff efficiency, according to the study (CIPD, 2022).
1.8 Relationship Between Training and Worker Performance:
A study by Karim et al. (2019) quantitative research revealed a significant positive correlation between staff training programs and productivity. The authors also indicated that there is a completely believable potential of the current state-of-the-art capability to prove a positively correlated connection between training and employee performance. However, comparatively few research findings do not detect this effect for instance, Abualoush et al. (2018) argue that employees may face difficulties when attempting to implement the knowledge and skills they have gained during training to their day-to-day work duties. These challenges may present themselves in the form of insufficient motivation or an inability to apply theoretical knowledge gained in the classroom to practical situations.
The investigation conducted by Okeke and Onuorah (2023) examined the correlation between reward strategy and employee performance in a sample of Anambra institutions. The study was conducted with the participation of 321 respondents who served as a sample and submitted the questionnaire. A regression method was employed to analyse the gathered data. The results indicate that worker productivity at the establishments under investigation is significantly enhanced by employee development and training. Consequently, among other recommendations, it was suggested that the administration of the institutions under scrutiny furnish sufficient training and regular courses for personnel across all categories. It was expected that this would augment their capabilities and result in greater productivity and efficiency.
1.9 Relationship Between Extrinsic Rewards and Employee Performance:
An investigation carried out by Bello et al. (2022) explored the impact of a workplace rewards system on staff efficiency at NECO Headquarters in Nigeria. The information utilized in this investigation was gathered from both primary and secondary sources. The research study found that the implementation of extrinsic rewards at NECO Headquarters in Minna has resulted in a moderately positive impact on worker efficiency. However, its effectiveness has been limited, contributing to the lack of statistical significance in the results. Similarly, studies conducted by Nemeckova (2017) in the Czech Republic and Khan et al. (2018) in Pakistan supported this finding indicating that extrinsic rewards significantly affect employee productivity.
In their study, Ihemereze, (2023); and Raine(2022) recognized that varying forms of rewards led to distinct levels of dedication among workers. The authors noted that while extrinsic rewards such as bonuses, increments in salaries or wages, and incentivized compensations had a significant influence on staff engagement, the factors displayed a weaker relationship with staff loyalty. In contrast, the authors noted that non-monetary rewards were more effective at fostering long-term staff commitment.
1.10 Research Methods and Methodologies:
A case study of Dignius Company operating in London, UK was selected. Diginius Consulting Ltd, a London-based organization established in 2011 by CEO Nate Burke and Juliana Burke, is renowned for its software integration with various advertising channels as well as advanced market tracking solutions. With a particular focus on pay-per-click (PPC) promotion, this business serves a wide-ranging clientele across various sectors and has been operational for 13 years. Presently, it collaborates with 700 marketing firms across 56 countries (Diginius, 2024). The business's swift growth during Juliana and Nate's tenure as leaders has earned it the title of Women in Leadership Winne this year. Diginius is a fast-tech developing SME small enterprise with a well-established organizational structure from senior management to regular employees as well as providing a hybrid workplace environment. The enterprise, being a small organization comprising 53 associate workers and 11–50 employees, serves as a microcosm of the UK ICT sector as a whole, encountering comparable obstacles and prospects in the efficient management of human resources (Diginius, 2024).
Table 1:Target Sample Population
Primary data was collected by the researchers from study participants using online questionnaires as recommended by Stoet (2017). The questionnaire consisted primarily of closed-ended questions developed based on a 5-Point Likert Scale where 1=Strongly Disagree (SD) and 5=Strongly Agree (SA). The investigators disseminated the questionnaires to participants through an online invite link. This was sent through WhatsApp and email messages that clarified the research aim, instructions on how to obtain the survey link, and assurances of confidentiality to respondents. A review of pertinent literature was conducted using secondary data, with the remainder serving to provide justification for specific decisions made.
1.11 Findings, analysis and discussion:
The present study involved a series of procedures, including questionnaire verification, amending, coding, hypothesis testing, and analysis. Statistical Package for the Social Sciences (SPSS) version 27 was utilized to compute statistical parameters, including means, averages, standard deviations, as well as percentages, in addition to the rate of response, in order to analyse the quantitative information. In order to present the results of the analysis, bar charts, graphs, and tables of frequencies were utilized. Inferential statistics, such as correlation regression and ANOVA, were performed. They were employed to ascertain the correlation between the study's dependent and independent variables.
Gender:
The study finding on gender was as indicated on Figure 2 below.
Figure 2: Gender Analysis
It was crucial to ascertain the respondents' gender. To determine whether the gender distribution was excessively unbalanced on one party or not, it would be necessary to ascertain the gender of the respondents in order to obtain their opinions. The results pertaining to the gender distribution of the participants in this research are displayed in Figure. According to the results, 51% of the respondents identified as female, while 49% identified as masculine. This is an excellent distribution that represents a balanced gender composition. Gender information was crucial for reflecting the manner in which respondents contributed concepts to the research. Their responses were significantly influenced by their gender, which enabled the researcher to conduct a more objective analysis of the data.
Age:
The research determines the age distribution of the participants. The findings are displayed on Figure 3.
Figure 3: Participant’s Age
As shown in the figure, 31.4% of the total respondents were between the ages of 20 and 25, 27.1% were between the ages of 26 and 30, 14.1% were between 31 and 35, 10% were between 36 and 40, 11.4% were between 41 and 45, 1.4% were between 46 and 50, and 4 % were 50 years of age or older. The fact that the majority of respondents were between the ages of 26 and 35 suggests that youthful personnel comprise the majority of Diginius Company. The significance of age inclusion lies in the fact that it signifies the degree of maturity. All of the participants were of legal age to be employed in the bank and, as such, possessed the requisite knowledge and information deemed valuable for this research.
Education:
The researcher aimed to ascertain the respondents' level of education, as it is a significant attribute that influences an individual's perspective, comprehension, and attitude toward the study questions. The finding are displayed on Figure 4 below.
Figure 4: Education Level
A significant proportion of the participants, comprising 47.1%, held a first-degree. 25.7% held a master's degree, 18.6% held a diploma, 5.7% held a PhD, and 2.9% held a PhD and above doctorate. The perspectives of the participants varied considerably based on their level of education, particularly in cases where substantial disparities existed among the respondents. The sample for this study was well-suited to the level of education required, as all participants had completed at least a college-level education.
Experience:
The respondents' years of experience within Diginius Company are detailed on Figure 5 below.
Figure 5:Experience
A total of 74.3% of the sample population was documented as having worked for the company for 2-5 years. 17.1% of the respondents confirmed that they have been with the organization for 6-10 years, indicating that the organization has only recently initiated a recruitment initiative. In conclusion, 8.6% of the participants stated that their tenure with the organization ranges from 15 years and above. The results indicate that approximately 99 percent of respondents have more than a year of excellent work experience.
Position:
The purpose of the study was to ascertain the job positions of the participants, as performance-enhancing rewards and incentives that are effective for one team may not yield the same results for another team in comparable situations. The inclinations and perspectives regarding a reward system vary among members of the same team or an individual (Doreen and Nkrumah, 2013). The employment outcomes on Figure 6 below.
Figure 6: Position in the Organization
The data reveals that the proportion of regular employees among the respondents was the highest at 61.4%, followed by senior management at 15.7%, supervisors at 11.4%, and HR managers at 11.4%. It was crucial to include job distribution so that the researcher could determine which reward improved job performance across all job positions the most effectively.
1.12 Study Reliability Analysis:
Reliability is defined as the extent to which repeated trials of study items produce consistent results (Friederich, and Lazarova-Molnar, 2022). The consistency of the observation of an outcome served as verification. The reliability of this investigation was determined utilizing Cronbach's alpha formula in conjunction with SPSS. The alpha is a number ranging from 0 (indicating lack of internal consistency) to 1 (indicating complete internal consistency). As the reliability coefficient increases, the number of errors that can be attributed to the test score decreases. As stated by (Bujang, Omar, and Baharum, 2018), an alpha value of 0.6 or lower is considered inadequate. As a result, Cronbach's alpha coefficients equal to or greater than 0.919 are considered reliable. The Reliability outcomes are presented in Table 2.
Variable |
Items No. |
alpha |
Outcome |
Financial Rewards (FRQ) |
5 |
0.805 |
Reliable |
Fringe Benefits (FBQ) |
5 |
0.853 |
Reliable |
Recognition Schemes (RSQ) |
5 |
0.838 |
Reliable |
Education Advancement (EAQ) |
5 |
0.909 |
Reliable |
Performance Motivation (MPQ) |
5 |
0.932 |
Reliable |
Table 2: Reliability Statistics
According to the data presented in Table 2, Cronbach's alpha values for all items exceeded 0.7, indicating that the instrument possessed adequate reliability for measurement purposes. All variables that were assessed obtained Cronbach's alpha values greater than 0.7, thus ensuring their acceptance. Thus, the collected data can be extrapolated to represent the viewpoints of the target population's respondents.
1.13 Descriptive Analysis :
Table 3: Employee Performance Motivation Descriptive Statistics
Descriptive Statistics:
|
|||
|
N |
Mean |
Std. Deviation |
[Productivity at the organization has increased over the past five years due to a well-established reward system] |
70 |
4.11 |
1.084 |
[My level of work engagement within this organization has increased in the last five years] |
70 |
4.13 |
1.020 |
Statements Relating to Motivation of Employee Performance [My work output has increased in both quantity and quality over the past five years] |
70 |
4.13 |
.977 |
[I have increased my skills and competencies levels which has enabled me to align with the operational and strategic objectives of the organization] |
70 |
4.16 |
.973 |
[Working in the organization I feel motivated and capable of operating autonomously and consistently delivering exceptional results] |
70 |
4.36 |
1.050 |
MPQM |
70 |
4.1771 |
.88632 |
Valid N (listwise) |
70 |
|
|
Findings in Table 3 above indicate that a substantial degree of perceived efficiency is often indicated by the total mean performance rating of 4.1771, which is driven by the several incentive programs in place, as per the data shown in Table 8. The .88632 average deviation points to a generally consistent assessment of these rewards' beneficial effects on performance.
1.13.1 Financial Reward and Worker Performance:
The primary aim of this study was to determine the impact of monetary compensation on employee performance at Diginius Company, an ICT sector organization based in the United Kingdom. The findings of this investigation are illustrated in Table 5.
|
N |
Mean |
Std. Deviation |
[Compensation and incentives are reasonable at this organization] |
70 |
3.96 |
1.185 |
[I am more inclined to achieve high levels of performance when I get a promotion for my successes] |
70 |
4.29 |
1.065 |
[I believe that the pay system of the organization is just and impartial] |
70 |
3.54 |
1.359 |
[Extra effort towards completing assigned tasks will result in a greater bonus along with salary] |
70 |
3.79 |
1.190 |
[In the workplace, monetary compensation would be my favor over any other form of incentive] |
70 |
3.67 |
1.327 |
Financial Rewards |
70 |
3.8486 |
.97590 |
Valid N (listwise) |
70 |
|
|
Table 4: Financial Reward and Worker Performance Descriptive Statistics
The finding in Table 4 indicates that with an average mean score of 3.8486 and a standard deviation of .97590extrinsic rewards which comprise bonuses, pay raises, and other material rewards had the lowest mean score of all the factors examined. This research indicates that external rewards, while still significant, have less of an effect than intrinsic motivators such as opportunities for professional development and recognition. Employees' perceptions of the worth of extrinsic rewards can vary greatly, as evidenced by the greatest standard deviation of 0.85 among the variables, which indicates more response variability.
1.13.2 Fringe Benefits and Worker Performance:
The second aim of this study was to determine the impact that Fridge Benefits had on the performance of employees at Diginius Company, an ICT company operating in the United Kingdom. The findings of this investigation are illustrated in Table 5.
Descriptive Statistics: |
|||
|
N |
Mean |
Std. Deviation |
[The supplementary work benefits provided by this company have played a vital role in my work performance] |
70 |
3.97 |
1.142 |
[My organization provides all workers with health insurance plans] |
70 |
3.60 |
1.197 |
[Pension plans are available within our organization] |
70 |
3.77 |
1.119 |
[When an organization achieves outstanding performance, its members are treated to a picnic] |
70 |
3.46 |
1.259 |
[The organization has The organization provides paid leaves like maternity and paternity] |
70 |
4.00 |
1.077 |
FBQM |
70 |
3.7600 |
.96465 |
Valid N (listwise) |
70 |
|
|
Table 5: Fringe Benefits and Worker Performance Descriptive statistics
With a mean score of 3.7600, fringe perks are likewise quite important for employee motivation as indicated in Table 5. These perks include retirement plans, health insurance, and other non-wage benefits that add value to the total compensation package.
1.13.3 Recognition Scheme and Employee Performance:
The third aim of this study was to determine the impact that recognition programs have on the performance of employees at Diginius Company, an ICT company operating in the United Kingdom. The findings of this investigation are illustrated in Table 6.
Descriptive Statistics: |
|||
|
N |
Mean |
Std. Deviation |
[In recognition and appreciation of exemplary employees, the organization presents them with gifts that motivate me to perform] |
70 |
3.76 |
1.197 |
[Certificates of recognition are presented to exemplary departments and staff] |
70 |
3.77 |
1.132 |
[The organization recognizes the achievement of employees] |
70 |
3.99 |
1.161 |
[My organization has a well-defined criterion to recognize employees] |
70 |
3.84 |
1.223 |
[My superiors and managers are typically appreciative of my sincere and expeditious efforts which increases engagement] |
70 |
3.83 |
1.204 |
RSQM |
70 |
3.8371 |
1.03015 |
Valid N (listwise) |
70 |
|
|
Table 6: Recognition Scheme and Employee Performance Descriptive Statistics
The recognition category's mean score of 3.8371 suggests that employees view recognition as a powerful motivator for their work. Acknowledging an employee's accomplishments and contributions can go a long way toward boosting morale and engagement. The very low standard deviation of 1.03015 indicates that employees generally agreed on the significance of recognition, demonstrating varied replies.
1.13.4 Training and Worker Performance:
The third objective of this study was to evaluate the impact of career advancement and training on the performance of employees at Diginius Company, an ICT company operating in the United Kingdom. The findings of this investigation are illustrated in Table 7.
Descriptive Statistics: |
|||
|
N |
Mean |
Std. Deviation |
[The organisation has implemented strategies for career advancement] |
70 |
3.89 |
1.084 |
[The organizational training programs serve as an add-on to my knowledge and skills] |
70 |
3.90 |
1.105 |
[With the advancement of their profession within our organisation, employees are entrusted with greater responsibilities] |
69 |
4.09 |
1.081 |
[Employees are motivated to exert additional effort in their work due to the prospects for professional development] |
69 |
4.09 |
1.108 |
[Progression in one's career attracts innovative and creative personnel to the organisation] |
70 |
3.90 |
1.065 |
EAQM |
70 |
3.9721 |
.94829 |
Valid N (listwise) |
68 |
|
|
Table 7: Training and Worker Performance Descriptive Statistics
The significance of education advancement in employee engagement was highlighted by its 3.9721 mean score.
1.14 Hypotheses Confirmation Analysis and Tests:
1.14.1 Correlation analysis:
A correlation analysis was performed to determine the association between worker performance (the dependent variable) and the independent factors of career advancement, fringe benefits, extrinsic rewards, and recognition programs. The score for each of variable was calculated using SPSS, in addition to determining Pearson's correlation.
The Pearson correlation coefficient (r) is a metric utilized to quantify the strength of the association between two variables (Sun et al., 2024). The Pearson correlation coefficient, represented as r, has a range of values spanning from +1 to -1. A value of zero indicates that the two variables are not correlated in any way. A correlation of -1 signifies a substantial inverse relationship, whereas a correlation of +1 signifies a substantial inverse relationship. At zero, the correlation intensity between two variables decreases.
Correlations: |
||||||
|
1 |
2 |
3 |
4 |
5 |
|
|
Pearson Correlation |
1 |
|
|||
Sig. (2-tailed) |
|
|
||||
N |
70 |
|
||||
|
Pearson Correlation |
.700** |
1 |
|
||
Sig. (2-tailed) |
.000 |
|
|
|||
N |
70 |
70 |
|
|||
|
Pearson Correlation |
.571** |
.647** |
1 |
|
|
Sig. (2-tailed) |
.000 |
.000 |
|
|
||
N |
70 |
70 |
70 |
|
||
|
Pearson Correlation |
.632** |
.818** |
.745** |
1 |
|
Sig. (2-tailed) |
.000 |
.000 |
.000 |
|
|
|
N |
70 |
70 |
70 |
70 |
|
|
|
Pearson Correlation |
.631** |
.760** |
.664** |
.801** |
1 |
Sig. (2-tailed) |
.000 |
.000 |
.000 |
.000 |
|
|
N |
70 |
70 |
70 |
70 |
70 |
|
Table 8: Correlation Statistics **. Correlation is significant at the 0.01 level (2-tailed). |
Extrinsic reward was positively and substantially associated with employee performance (r=.631**, p=0.000).
Employee performance was significantly and positively correlated with fringe benefits (r=.700**, p=0.000), whereas employee performance was also significantly and positively correlated with recognition schemes (r=.571**, p=0.000).
There was a significant and positive correlation between employee performance and both training and career progression (r=.632**, p=0.001).
1.14.2 Regression Analysis:
As shown in Table 9, a regression test was performed to ascertain if a substantial correlation existed between the reward system and employee performance motivation..
Model |
R |
R Square |
Adjusted R Square |
Std. Error of the Estimate |
Change Statistics |
||||
|
|
|
|
|
R Square Change |
F Change |
df1 |
df2 |
Sig. F Change |
1 |
.836a |
.699 |
.681 |
.49709 |
.699 |
37.804 |
4 |
65 |
.000 |
Table 19:Model Summarya. Predictors: (Constant), Education Advance, Financial Rewards, Recognition Scheme, Fringe Benefits
b. Dependent Variable: Motivation to Perform
Furthermore, the model exhibited a moderate level of strength, as evidenced by R-square values of 0.699 subsequent to error adjustments to 0.003. This finding indicates that the independent variables merely explain 69.9% of the variability observed in employee effectiveness.
ANOVAa |
||||||
Model |
Sum of Squares |
df |
Mean Square |
F |
Sig. |
|
1 |
Regression |
37.365 |
4 |
9.341 |
37.804 |
.000b |
Residual |
16.062 |
65 |
.247 |
|
|
|
Total |
53.427 |
69 |
|
|
|
Table 10: ANOVAa. Dependent Variable: Motivation to Perform
b. Predictors: (Constant), Education Advance, Financial Rewards, Recognition Scheme, Fringe Benefits
The results of the Analysis of Variance (ANOVA) presented in Table 10 indicate that the model was statistically significant (F=37.809, p<0.000). Since the p-values were all 0.00, which is less than 0.05, the null hypothesis is rejected and the assumption that a significant postive relationship exists between reward system and worker performance motivation at Diginius Company.
Coefficientsa
Model |
Unstandardized Coefficients |
Standardized Coefficients |
|
Sig. |
95.0% Confidence Interval for B |
Collinearity Statistics |
||||
B |
Std. Error |
Beta |
Lower Bound |
Upper Bound |
Tolerance |
VIF |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
t |
|
|
|
|
|
|
||
1 |
(Constant) |
.899 |
.280 |
|
3.207 |
.002 |
.339 |
1.458 |
|
|
Extrinsic Rewards |
.126 |
.089 |
.139 |
1.424 |
.159 |
-.051 |
.303 |
.484 |
2.065 |
|
Fringe Benefits |
.206 |
.120 |
.225 |
1.719 |
.090 |
-.033 |
.444 |
.269 |
3.718 |
|
Recognition Scheme |
.094 |
.089 |
.110 |
1.059 |
.294 |
-.083 |
.271 |
.429 |
2.329 |
|
Education Advance |
.420 |
.126 |
.452 |
3.329 |
.001 |
.168 |
.671 |
.251 |
3.991 |
Table 11: Coefficients
a. Dependent Variable: Motivation to Perform
When all other elements, including compensation, benefits, and development, are excluded, the employee's performance will be valued at 2.053. With no change to benefits and training, each unit increase in recognition would result in a 0.682-unit improvement in employee performance. With all other factors (recognition and training) held constant, a one-unit increase in benefits would result in a 0.038 unit decline in an employee's performance. With all other factors (recognition and benefits) held constant, each unit increase in training would result in a 0.25 unit improvement in an employee's performance.
1.14.3 Hypotheses Summary:
Hypotheses |
P-Value |
β |
Result |
|
H1 |
Recognition positively motivates employee performance |
0.000 |
0.110 |
Accepted |
H2 |
Training positively motivates employee performance. |
0.000 |
0.452 |
Accepted |
H3 |
Benefits positively motivate employee performance |
0.000 |
0.225 |
Accepted |
H4 |
Extrinsic rewards positively motivate employee performance |
0.000 |
0.139 |
Accepted |
Table 12: Hypotheses Summary
1.15 Discussion:
The finding on employee performance motivation with an overall mean of 4.1771 indicated that a huge percentage of individual agreed to factors of performance motivation at Diginius company. This is consistent with previous research showing how crucial a thorough compensation plan is for raising worker motivation and output (Armstrong and Taylor, 2014). According to Idowu (2017), performance reviews act as a trigger for fruitful conversations between workers and employers or business owners that might not otherwise take place. Because many small organizations operate quickly, administrators often find it difficult to provide employees constructive feedback regularly, and employees find it difficult to voice problems. The choice to set aside time for particular kinds of conversations that are advantageous to the company and its staff is known as a performance assessment.
The results obtained from this research validate the impartiality and equity of the incentive program implemented within Diginius Company. The protocols implemented by ICT reward systems exhibited uniformity. Ceplenski (2013) emphasizes in the literature the importance of perceived impartiality in reward policies, as the lack thereof may ultimately result in employee discontentment. Workers who receive treatment equitably are more likely to contribute to the organization's success compared to those that were addressed unjustly (Ford et al., 2015:253). Khalid (2024) underscores that companies should design diverse and equitable systems for rewarding employees. Furthermore, the findings of the present study revealed noteworthy correlations among feedback/appreciation and the equity of reward policies pertaining to salary, bonuses, certificates of achievement, and employee of the month.
In line with findings on fringe benefits, Milkovich, Newman, and Gerhart (2014) propose that fringe benefits have a positive impact on employee happiness and loyalty, leading to enhanced performance (Gorgenyi-Hegyes, 2021). The data suggests that although fringe benefits are significant, their impact may vary based on worker preferences and circumstances. The standard deviation of .96465 implies a slightly higher variety in the responses. Performance-based pay plans have the potential to cause large, sporadic salary variations, which could make risk-averse employees less valuable. According to Allen, Whittaker, and Sutton (2017), raising worker productivity depends on how satisfied workers are with their jobs. While certain forms of success-based compensation, like profit sharing, may improve employee stability, others may make employees' income disparities worse, which would lower morale and motivation and undermine expectations of justice. As a result, performance-based compensation plans may raise employee pay satisfaction while lowering it when it comes to other aspects of the job, such as reward structures, risk, and responsibility
The study found that recognition positively influenced performance motivation of employees at Diginius Company. This finding is consistent with earlier studies that emphasize the significance of recognition in boosting employee morale and productivity (Brun and Dugas, 2008). When workers feel appreciated and involved, which is cultivated via recognition, their performance and level of engagement can increase (Bakker et al., 2011). According to Prajapati (2015), presents are given to business workers in an effort to boost their spirits. They are given out to encourage and persuade workers to put in more effort. Most employees work toward raising their level of living. Therefore, rewards like presents have to be given to them to encourage them to work harder. These gifts are usually given out on special occasions like birthdays and anniversaries or at holiday parties like Christmas or New Year's. As a way to thank their staff, tech companies offer recognition programs that involve presents.
Employees place a high value on opportunities for professional development and career advancement since they allow them to progress in their careers and improve their abilities. Research indicates that options for ongoing education are crucial for retaining staff members' motivation and engagement, especially in quickly changing fields like technology (Noe, 2017). Depending on their career stages and goals, employees place varying amounts of importance on education progression, as indicated by the considerable fluctuation of the .94829 standard deviation. The results are consistent with literatures (Agustine et al.,2023; Hegab, et al, 2023) showing that companies increased productivity through the adoption of performance appraisal systems. The incentive programs put in place by companies are solely responsible for the rise in productivity.
The findings of this research are consistent with the arguments put forth by Kepha (2015), which suggest that employee success is positively influenced by training and learning. In a similar, it is identified that instructional activities significantly and favorably affected employee satisfaction. It is found that strategic human resources techniques were implemented by public agencies for the primary functions of development and recruitment, as well as evaluation and assessment of training efficacy (Chun, and Evans, 2023; Tuytens, Vekeman, and Devos, 2023). The results of this study corroborate the conclusions which established a significant correlation between external rewards and the achievement of employees. It was noted that incentives gained significance when they were positioned as valid methods of remuneration for labor executed. Burton (2023) argued that management decisions regarding employee compensation ought to be rational and centred on a framework that promotes fairness.
1.16 Findings relative to research objectives:
To determine the extent to which extrinsic rewards motivate worker performance:
The investigation examined the degree to which employee performance was influenced by extrinsic rewards. The five statements pertaining to monetary incentives received the majority's support, as evidenced by the mean score of 4.0 and the std dev of 0.7. A correlation analysis conducted between financial rewards and employee performance unveiled a statistically significant and positive association. Based on the findings of the regression analysis, a significant and positive correlation was observed between financial compensation and employee performance. This claim was supported by the calculated t-stat of 2.103, that exceeds the threshold t-statistic of 1.96. A single unit rise in financial rewards is associated with a corresponding change in employee performance, assuming all other variables remain constant, as predicated on this relationship. Therefore, the study examined the alternative hypothesis that financial reward significantly impacts employee performance at Diginius Company, a United Kingdom-based ICT sector organization.
To evaluate the extent to which fringe benefit motivate worker performance:
The second objective of the study was to ascertain the effect that perquisite benefits have on the performance of employees at Diginius Company, a United Kingdom-based ICT sector organization. Majority of the sample expressed agreement with the statement concerning supplementary benefits, as indicated by an average score of 3.94 and a standard deviation of 0.78. The regression coefficient indicates that a positive and statistically significant correlation was identified between perquisite benefits and employee performance. This was supported by the calculated t-statistic of 2.440, which surpasses the critical t-statistic of 1.96. Therefore, with all other factors held constant, an increment of one unit in perquisite benefits leads to an improvement of 0.168 units in employee performance. The research study adopted the alternative hypothesis that perquisite benefits have a substantial effect on employee performance at Diginius Company, an ICT sector organization in the United Kingdom.
To assess the extent to which recognition motivates worker performance:
The third research objective investigated the degree to which employee performance is motivated by recognition programs at Diginius Company, an ICT company operating in the United Kingdom. A majority of those surveyed expressed agreement with the statement concerning recognition schemes, as evidenced by the mean score of 3.88 and the Std dev of 0.75. It was ascertained that employee performance was sufficiently elucidated through recognition programs. Furthermore, it was established through the research that recognition programs effectively predict the performance of personnel. The findings of the correlation analysis revealed that employee performance and recognition programs are significantly and positively correlated. Regression analysis revealed a statistically significant and positive correlation between recognition schemes and employee performance. This was further supported by a t-statistic of 6.740, which surpasses the calculated critical t-statistic of 1.96. Thus, a one-unit improvement in recognition schemes leads to a 0.395-unit enhancement in employee performance, assuming all other factors remain constant. The study examined the alternative hypothesis that recognition programs have a substantial effect on employee performance at Diginius Company, a United Kingdom-based ICT sector organization.
To determine the extent to which training and career development motivate worker performance:
The fourth objective of the study was to ascertain the effect of career progression on worker productivity at Diginius Company, a United Kingdom-based ICT sector organization. The prevailing sentiment was in favor of the statement concerning professional advancement, as evidenced by the mean of 3.88 and the Std dev of 0.79. The statistical analysis revealed a positive and significant correlation between employee performance and career advancement, as indicated by the results of the regression analysis. This claim was supported by the calculated t-statistic of 7.441, which surpasses the critical t-statistic of 1.96. This indicates that an employee performance change occurs in response to a one-unit increase in career progression, assuming all other variables remain constant. The study examined the alternative hypothesis that employee performance is significantly influenced by career progression at Diginius Company, a United Kingdom-based ICT sector organization.
1.17 Conclusions:
The purpose of this case study was to assess the effect of a reward system on employee motivation and performance at the Diginius Company, a London-based organization operating in the ICT sector of the United Kingdom. The study reached the conclusion, in light of its findings, that employee performance is significantly influenced by reward systems, including financial compensation, perquisite benefits, recognition programs, and career advancement. In order to incentivize and enhance the performance of personnel in the dynamic ICT sector, it is therefore imperative to establish a comprehensive and methodical incentive framework. Furthermore, it can be inferred that while monetary incentives have maintained their longstanding importance, they are no longer the sole motivator for employee performance. Employees in high-tech organizations, which prioritize adaptability and innovation, place the utmost value on incentive programs and opportunities for professional development. These elements not only recognize the contribution of employees but also provide opportunities for their professional growth, thus aligning individual ambitions with the goals of the collective. In addition, incentives for work-life balance have gained prominence as a consequence of the hybrid working model's emphasis on adaptability and incorporation of personal fulfilment into the workplace milieu.
There is no conflict of interest. Igwe, Ejikeme Peter, made contribution in the statistical analysis of this work.