EFFECT OF EFFECTIVE REWARD SYSTEM ON EMPLOYEE PRODUCTIVITY
Abstract
ABSTRACT
This study examines the impact of an effective reward system on employee productivity, focusing on selected organizations in Imo State—Bentraco, Ebere Links Limited, and BK Supermarket. Anchored on Reinforcement Theory and Maslow’s Hierarchy of Needs, the research assesses how wage and salary (WAS), work–life balance (WLB), and recognition and promotion (RCP) influence employee performance. Data were collected from 50 purposively selected employees using a structured questionnaire and analyzed through Ordinary Least Squares (OLS) regression.The findings indicate that recognition and promotion (RCP) exert a statistically significant positive effect on employee productivity (β = 0.603, p = 0.017), whereas wage and salary (β = 0.072, p = 0.603) and work–life balance (β = 0.284, p = 0.169) show positive but statistically insignificant effects. The model explains 47% of the variance in employee productivity (R² = 0.470). These outcomes are consistent with contemporary studies (2020–2025) emphasizing the growing importance of non-monetary incentives in enhancing workforce performance. The study concludes that recognition and promotion play a pivotal role in improving productivity among organizations in Imo State. It recommends that firms institutionalize structured recognition systems, regularly review compensation frameworks, and strengthen work–life balance initiatives. Overall, the study enriches existing literature by reaffirming the significance of non-financial rewards in motivating employees and driving organizational success in developing economies.
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