Impact of Rewards on Employee Performance: A Study on Private Banking Sector in Bangladesh

Abstract

Reward management is a function of human resource management which is considered as a strategic asset for any organization. Therefore, this study is aimed to illustrate to what extent do rewards has an impact on employee performance in private banking sector in Bangladesh. More specifically this study has investigated the relationship between extrinsic reward, intrinsic rewards and employee performance level in private banking sector in Bangladesh. A total of 61 employees from 17 private banks were selected as sample to collect data through structured questionnaire including 11 questions. Descriptive statistic was used to provide a narrative view of the study while multiple regression analysis was undertaken as a statistical tool to do hypothesis testing. The result indicates that there is a strong positive relationship between intrinsic rewards and employee performance meaning that employees are highly interested to learn through training, solve complex challenging task, recognize by organization, receive feedback from managers and achieve organizational goal. The research result can be used as a guideline for other private banks in Bangladesh to have a better understanding of significance of reward system on employee performance that will help to develop a strategic reward system for sustainable competitive advantage