THE IMPACT OF EMPLOYEE REWARD TO EMPLOYEE PRODUCTIVITY: BASIS FOR ENHANCEMENT REWARD PROGRAM

Abstract

Employee rewards are essential in organizations as they recognize and appreciate the hard work of employees, leading to improved productivity and job satisfaction. Understanding how rewards impact employee performance is crucial for organizations seeking to foster motivation and increase overall efficiency. Researchers have been examining the effects of different types of rewards, focusing on how employees’ experiences, needs, and preferences influence their productivity.  The motorcycle manufacturing industry is rapidly growing, driven by an increasing demand for motorcycles due to their cost-efficiency, fuel economy, maneuverability, and lower maintenance costs. As the industry continues to thrive, it becomes increasingly important for companies to understand how various reward systems affect employee productivity and engagement.  This study investigates the impact of long-term and non-financial rewards on employee productivity in the motorcycle manufacturing industry. The aim is to provide insights into how these rewards can enhance motivation, improve performance, and strengthen employee commitment, ultimately helping organizations recognize the value of rewards in fostering a more productive workforce. This study utilized a quantitative correlational research design to explore the impact of employee rewards on productivity in the motorcycle manufacturing industry. The research aimed to understand how different forms of rewards (monetary, recognition, and non-financial) influence employee motivation, productivity, skill development, initiative, and overall work performance. Sampling and Participants:  The study employed purposive sampling, selecting 27 local employees from the motorcycle manufacturing industry. The participants' demographic characteristics (age, gender, and company position) were also considered, as these factors were expected to have an impact on the way rewards influenced employee productivity. Research Instrument:  Data was collected using a structured questionnaire, designed to measure the relationship between employee rewards and productivity. The questionnaire was divided into sections focusing on: Personal Demographics: Age, gender, and company position Motivation and Productivity: Questions to assess the effect of rewards on motivation and work performance Skill Development and Initiative: To measure how rewards contribute to employees’ professional growth and initiative. To ensure the validity and reliability of the research instrument, the questionnaire was reviewed and validated by experts in the field. Data Analysis:  The data collected was subjected to statistical analysis to determine the correlations between employee rewards and various productivity outcomes. The statistical treatment helped identify significant relationships between rewards and improvements in motivation, productivity, skill development, and initiative. Objective:  The goal of the study was to provide valuable insights into the relationship between employee rewards and productivity, contributing to the understanding of how reward systems can enhance employee engagement and performance in the motorcycle manufacturing industry. The survey conducted within the motorcycle manufacturing industry revealed several key findings about employee demographics, rewards, and their impact on productivity.  Demographic Profile:  Age Distribution: A significant portion of the respondents, 51.85%, are aged between 26 and 30. However, the highest percentage of employees belongs to the 36-40 age group and older. This indicates that the workforce is fairly diverse in terms of age, with older employees representing a considerable portion of the workforce. Work Engagement and Commitment: Older employees (aged 36-40 and above) exhibited higher work engagement and commitment levels. These employees showed greater loyalty to the organization, were more invested in their roles, and displayed a deeper sense of responsibility towards their work. Employee Rewards:  Employees frequently receive various types of rewards, including six appreciation awards. These include: Recognition for their contributions. Monetary rewards, such as performance-based bonuses. Extra vacation days as a form of rest and appreciation. Personalized gifts to acknowledge individual efforts. Reward Effectiveness: Among the rewards, monetary incentives and performance-based bonuses were the most commonly mentioned as key motivators. These rewards were found to significantly enhance employee productivity and satisfaction. Team Building and Productivity:  The survey indicated that team building activities, when combined with rewards, play a pivotal role in improving workplace collaboration and productivity. These activities, along with rewards, helped foster teamwork and improve interpersonal relationships, which in turn boosted overall productivity. Time Management Tools:  Paid time off, gift cards, and appreciation rewards were highlighted as effective tools for improving time management. Employees reported that paid time off allowed them to recharge, leading to better focus and productivity. Additionally, gift cards and appreciation rewards were seen as tools that helped employees organize their tasks better and manage their time more effectively. The findings of this study highlight the significant role that employee rewards play in improving productivity within the motorcycle manufacturing industry. As a sector primarily composed of male employees, with a distribution of 66.7% male workers, the study focused on various positions such as Sales Admin, Collector, Branch Head, Branch Mechanic, Sales Marketing, and Parts Custodian. The results underscore the effectiveness of reward systems in motivating employees to enhance their skills, increase initiative, and manage their time more efficiently.