Impact of monetary and non monetary rewards towards employee motivation : case study of garment industry in Sri Lanka

Abstract

This research is carried out to investigate the impact of monetary and non-monetary rewards towards employee motivation. Therefore, research objectives are set out to understand to identify different financial and non-financial rewards used by the organization considered, to critically evaluate the importance of using financial and non-financial rewards for organization and to access the significant of motivating employees for the organization.Further, study is carried out to analyse the impact of financial and non-financial rewards on employee motivation of the organization. Further study is used to provide recommendations on ensuring employee motivation through financial and non-financial rewards.Primary and secondary data collection methods are used to investigate the study. Quantitative data analysis method is used to collect numerical data and analyse the numerical data from SPSS statistical software a well MS Excel. Frequency distribution analysis is used to address the second objective of the research. Thereby, it can be concluded that all independent variables are important for motivation as they are all above the mean value of 3. The most important reward is achievement followed by influence. Monetary rewards are also of high importance according to the above analysis.Correlation analysis and Regression analysis is carried out to explore the most significance motivating factors which affects the employee’s motivation. And it is found that Achievement Recognition and Financial Rewards are most significant factors that affects the employee motivation.It is recommended to provide support to employees to achieve job tasks, to motivate employees while appraising their exceptional performance, to motivate employees by considering their new ideas and suggestions, to get the employee participation in organisational decision making process, to allow employees to get benefits from opportunities, to allow employees to take organisational decisions freely, to keep the employee suggestion box to motivate employees in other way, to develop training and development programs to enhance employee skills and competencies of the organisation and to provide monetary rewards to employees of the organisation.