The Effect of Monetary and Non-Monetary Rewards on Employee Engagement and Firm Performance

Abstract

This research explores the concept of employee engagement and how employee engagement can be strengthened by offering monetary and non-monetary rewards to employees. The objective of this research was to assess the relationship between employee engagement and high firm performance. For testing hypothesis data were collected through questionnaires from 250 respondents. Hierarchical linear regression was used to estimate the effect of rewards on firm performance mediated through employee engagement. Results disclosed the fact that monetary and non-monetary rewards can increase the level of employee engagement and high level of employee engagement is an important cause for high firm performance.

Keywords: Employee Engagement, Monetary Rewards, Non-Monetary Rewards, Perceived Organizational Performance