Abstract: Employees are the main assets for an organisation and motivating the employees can improve their performance. Several ways can be incorporated for employee motivation. The objective of this research is to understand the role of Total Rewards and Compensation in increasing employee motivation. Survey has been conducted by incorporating 80 participants and the survey results has been analysed with the help of SPSS software. The result conveys that there is a positive relation between employee motivation and engagement. Employee motivation has strong relation with employee engagement and increasing organisational performance. Employee motivation can create positive working culture within the workplace. The research will contribute to understand the role of compensation and total rewards in case of employee motivation. Besides this, this research is also helpful to understand the importance of employee motivation in case of organisational performance. According to the results, it can be said that rewards can increase the productivity of employees from the perspective of law and government services, as well as improve their status and the efficiency of the organization, and this can help in better implementation of government services and better implementation of government rules and procedures.
Keywords: Employee Motivation. Total Rewards. Compensation. Government Rules. Organisational Performance.
Resumo: Os empregados säo o principal activo de uma organizaçâo e a motivaçâo dos empregados pode melhorar o seu desempenho. Várias formas podem ser incorporadas para a motivaçâo dos empregados. O objectivo desta investigaçâo é compreender o papel das Recompensas e Compensates Totais no aumento da motivaçâo dos empregados. O inquérito foi realizado através da incorporaçâo de 80 participantes e os resultados do inquérito foram analisados com a ajuda do software SPSS. O resultado transmite a existencia de uma relaçâo positiva entre a motivaçâo dos trabalhadores e o seu envolvimento. A motivaçâo dos trabalhadores tem uma forte relaçâo com o envolvimento dos trabalhadores e o aumento do desempenho organizacional. A motivaçâo dos trabalhadores pode criar uma cultura de trabalho positiva dentro do local de trabalho. A investigaçâo contribuirá para compreender o papel da remuneraçâo e da recompensa total em caso de motivaçâo dos trabalhadores. Além disso, esta investigaçâo também é útil para compreender a importancia da motivaçâo dos trabalhadores em caso de desempenho organizacional. De acordo com os resultados, pode dizer-se que as recompensas podem aumentar a produtividade dos empregados na perspectiva da lei e dos serviços governamentais, bem como melhorar o seu estatuto e a eficiencia da organizaçâo, e isto pode ajudar a uma melhor implementaçâo dos serviços governamentais e a uma melhor implementaçâo das regras e procedimentos governamentais.
Palavras-chave: Motivaçâo dos funcionários. Recompensas totais. Compensaçâo. Regras do governo. Desempenho Organizacional.
1.Introduction
Employee motivation is a necessary and internal drive that can help to provide required actions related to business activities. As per the opinion of Asif et al. (2019), employee motivation can be referred to as the enthusiasm, creativity, and commitment provided by an employee towards an organisation. It has been identified that to improve the performance of an employee motivation plays an important role, which can eventually improve the performance of the organisation.
Employee motivation is an important aspect in case of achieving the goal of the organisation. As per the statement of Paais & Pattiruhu (2020), a positive culture can be created within an organisation through employee motivation. It has been identified that employee motivation can be generated through various ways. The management of an organisation incorporates compensation and rewards systems, which can help to provide recognition to the employees. This is crucial in case of increasing the motivation of employees to increase their engagement. In this present study, critical analysis has been done to understand the role of total rewards and compensations in case of employee motivation.
Research aim and objectives
The aim of the research is to analyse the role of total rewards and compensation to achieve the various aspects of employee motivation.
The following research objectives have been considered in case of the present research:
1. To analyse the importance of employee motivation in case of increasing employee engagement
2. To understand the role of total rewards and compensations in case of motivating an employee
3. To analyse the relation between employee motivation and business performance
4. To evaluate the necessity of employee motivation for creating a positive culture within an organisation
2. Significance of the study
The significance of the study lies within understanding the importance of total rewards and compensations in case of employee motivation. Besides, this research will give a better understanding of the necessity of employee motivation in case of improving the business performance. Along with this, the importance of employee motivation in case of creating a positive culture within an organisation has been evaluated through this research. Lastly, this research is significant, as it will focus on analyzing the relation between employee motivation and employee engagement.
3. Literature Review
In recent years, the management of any organisation has been focusing on incorporating the ways in which employee motivation can be achieved within the organisation, which can eventually help to increase the performance of the company. In this present section, the research objectives have been discussed with the help of supportive and argumentative data that can provide a better understanding of the research subject.
3.1 Concept and importance of employee motivation within an organisation
Employees are the main assets of an organisation and the performance of the organisation is dependent on the performance of their employees. For this reason, it is important to increase the engagement of the employees towards the organisation. As per the opinion of Riyanto et al. (2021), employee motivation is the ways in which the management increases the engagement of the employees to enhance the quality of the business activities. The main aim of employee motivation is to increase the commitment and energy of the employees to do the activities related to the business. Employee motivation is important in case of any organisation as it helps the management to achieve the goal of the business. Employee motivation by the management can also help to increase the personal growth of the employees, which can also help to increase the engagement of the employees and improve business outcomes.
3.2 Different ways of employee motivation incorporated by an organization
It has been identified that the management of an organisation provides special attention to incorporate effective ways that can motivate the employees to perform the business activities. As mentioned in the works of Amor et al. (2020), recognition of good performance can help to encourage the employees to do better jobs. In this case, the management of an organisation can incorporate total rewards as a recognition technique that can effectively encourage the workforce. As per the suggestion of Idigo (2023), total rewards are the monetary benefits and developmental rewards for the employees for achieving the desired goal.
This rewards system encourages the employees to perform better in order to attain the rewards. On the other hand, Didit & Nikmah (2020) opined that compensation is also an effective way of paying benefits to the employees that can create a sense of motivation within the employees to do better performance. Hence, it has been identified that rewards and compensations are the effective ways in which the management of an organisation can motivate their employees to do better performance.
3.3 Advantages and disadvantages of total rewards and compensation techniques
It has been identified that the management of an organisation has been incorporating several ways such as total rewards and compensations to motivate the employees for improving the performance of the organisation. These two methods have several advantages and disadvantages, which can affect the organisation in both ways. As per the opinion of Alhmoud & Rjoub (2019), the advantage of total reward is it helps to increase the performance and productivity of the employees. On the other hand, the total reward process is also beneficial for increasing employee retention, which is advantageous for the organisation. Along with the advantages the total reward system has some disadvantages such as workplace conflict and an over competitive environment which can damage the work culture. As per the suggestion of Anwar & Abdullah (2021), the advantages of compensation technique is it helps to increase the sales and revenue of the organisation by increasing the performance of the employees. Along with the advantages, the compensation process has some disadvantages such as unpredictable expenses and overly aggressive sales, which needs to be managed by the management effectively.
3.4 Role of management in case of motivating the employees
It has been observed that employee motivation is a crucial factor in achieving the goals of any organisation. As per the statement of Pham et al. (2020), the management of an organisation plays a crucial role in motivating the employees by incorporating effective strategies. In this case, several effective ways have been incorporated by the management to ensure employee motivation within the organisation. As per the opinion of Roscoe et al. (2019), creating a positive organisational culture can also help to encourage the employees to carry out the business activities efficiently. In this case, the role of the management is to understand the needs of the employees that can help them to implement effective processes that can encourage the employees to do better performance.
Theoretical Framework
We followed the theoretical framework as indicated in the Figure 1, factors impacting the employee motivation (Source: https://www.researchgate.net/figure/As-a-measurement- and-conceptual-model-of-factors-affecting-employees-work-motivationin_fig1_273950106) In
this case, the management of an organisation can incorporate the McClelland's Theory of Needs, which can help them to understand the needs of the employees. As per the suggestion of Acquah et al. (2021), achievement, affiliation, and power are the main drivers, which can encourage the employees. For this reason, in the case of motivating the workforce the management needs to understand the factors, which can provide a sense of power, affiliation, and achievement to the employees that can eventually motivate them to work better to improve the performance of the organisation. Hence, the McClelland's Theory of Needs is an effective approach that can be taken by the management in case of employee motivation.
4.Hypothesis
The following hypothesis has been developed for this research:
H1: There is a strong relationship between employee motivation and organisational performance
H0: There is no relationship between employee motivation and organisational performance
H2: There is a heavy linkage relationship between positive organisational culture and employee motivation
H0: There is no association between positive organisational culture and employee motivation
5. Methodology
The purpose of this research is to investigate the role of total rewards and compensations in the case of encouraging the employees of an organisation. In order to achieve the research objectives primary quantitative research method has been chosen and survey has been conducted to gather necessary information regarding the research topic. As per the opinion of Pratama et al. (2022), quantitative methods are helpful to gather the numerical data related to the research objectives. The sample consists of 80 respondents using a random sampling method. A descriptive research design has been selected and a questionnaire has been developed consisting of 10 questions. As per the suggestion of Malmqvist et al. (2019), analysis of the gathered data has been the most effective part of conducting research. SPSS software has been used in this research and normality test, regression test, correlation and descriptive statistics test has been conducted in this research to formulate the data gathered from the survey. [Refer to appendix 2]
6. Result and discussion
The survey results have been analysed and discussed in this present section, which helps to formulate the objectives of the research.
From the above table it has been identified that the frequency of the participants belonging to the age group of 18 to 30 years is 27%. On the other hand, the frequency of the participants belonging from the age group of 31 to 45 years of age is 28% along with 21% frequency belonging to the age group 46 to 60 years of age. Besides, 4% frequency has been generated in cases of above 60 years of age group.
From the above figure 1 it has been identified that 33.8% of the respondents belong to the 18 to 30 years of age group along with 35% of the respondents belonging from 31 to 45 years of age. Hence, it can be concluded that participants from all age groups have shown interest in this survey.
With the help of SPSS analysis 31% frequency has generated in case male participants along with 37% for the female participants.
It has been observed from the above figure that 38.8% of the participants are male and 46.3% of the respondents are females, which reflects that both male and female have shown interest in this research subject.
The above table reflects that 34% is the majority frequency generated from the survey from which it can conclude that the participants are postgraduates. 24% frequency has gained in case of participants having minimum educational qualification of graduates.
The above figure reflects that 42.5 % of the participants have post-graduation qualification along with 30% participants having the minimum educational qualification of graduate. Hence, it can be concluded that the participants have minimum qualification for having the knowledge regarding the research objective.
The above table 4 reflects the model summary of the survey conducted to understand the role of total rewards and compensation in case of employee motivation. In this case, the value of Durbin-Watson has been achieved from the SPSS analysis is 1.826.
From the above OVA table the degree of freedom has been identified which reflects that in case of regression ANOV is valued at 6. On the other hand, in case of residuals the value of is 73 which amplifies the significance of the research which is .000% The above table reflects the correlation between the independent and dependent variables of the research. It has been identified that the correlation coefficient significance value has been obtained as 0.000, which reflects that the research is significant the variables are related to each other.
The above table reflects that Kaiser-Meyer-Olkin Measure of Sampling Adequacy value is .884 and the df value is 21 which resulted in the significance value of .000 of this research.
The research is considered reliable, as the Cronbach's Alpha value is more than 0.8 (Schrepp, 2020). In the above table, the Cronbach's Alpha value is 0.867, which reflects that this study is reliable and its results are related to the research objectives.
The test of normality table implies that the minimum df attained in case employee motivation and improved engagement and performance is 4 and the maximum df attained is 21 with the help of SPSS analysis.
The test of normality table implies that the minimum df attained in case employee motivation and improved engagement and work ability is 6 and the maximum df attained is 23 with the help of SPSS analysis.
The test of normality table implies that the minimum df attained in case of employee motivation and improved engagement and creating positive working culture is 6 and the maximum df attained is 22 with the help of SPSS analysis.
The above test of normality table reflects that the minimum df achieved regarding employee motivation and improved engagement and attaining the organisational goal is 8 whereas the maximum df achieved is 24. Hence, it has been identified from the results obtained from the SPSS analysis that total rewards and compensation have a positive impact on the employee performance.
7.Conclusion
From the above discussion of this research, it has been identified that the role of total rewards and compensations has been crucial in case of employee motivation. It has been also analysed from the survey responses that employee motivation can help to increase the employee engagement, which can have the potential to improve the performance of the business organisation. In addition to this, it has been also concluded from the research findings that employee motivation can also help to create a positive culture within an organisation.
Received: 10 Nov 2022
Accepted: 15 Jan 2023
Published: 25 Fev 2023
Corresponding author: [email protected]
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Abstract
Os empregados säo o principal activo de uma organizaçâo e a motivaçâo dos empregados pode melhorar o seu desempenho. Várias formas podem ser incorporadas para a motivaçâo dos empregados. O objectivo desta investigaçâo é compreender o papel das Recompensas e Compensates Totais no aumento da motivaçâo dos empregados. O inquérito foi realizado através da incorporaçâo de 80 participantes e os resultados do inquérito foram analisados com a ajuda do software SPSS. O resultado transmite a existencia de uma relaçâo positiva entre a motivaçâo dos trabalhadores e o seu envolvimento. A motivaçâo dos trabalhadores tem uma forte relaçâo com o envolvimento dos trabalhadores e o aumento do desempenho organizacional. A motivaçâo dos trabalhadores pode criar uma cultura de trabalho positiva dentro do local de trabalho. A investigaçâo contribuirá para compreender o papel da remuneraçâo e da recompensa total em caso de motivaçâo dos trabalhadores. Além disso, esta investigaçâo também é útil para compreender a importancia da motivaçâo dos trabalhadores em caso de desempenho organizacional. De acordo com os resultados, pode dizer-se que as recompensas podem aumentar a produtividade dos empregados na perspectiva da lei e dos serviços governamentais, bem como melhorar o seu estatuto e a eficiencia da organizaçâo, e isto pode ajudar a uma melhor implementaçâo dos serviços governamentais e a uma melhor implementaçâo das regras e procedimentos governamentais.