How perceived reward systems affect employee performance at work

Abstract

A major challenge for an organization is the ability to retain its employees. A practical method to increase their stay is the use of adequately implemented reward systems.This research seeks to investigate the impact of reward systems on employee performance and analyze how satisfaction with rewards can result in a better working performance in the job environment. A qualitative interview with employees and branch managers from different Lebanese banks is carried out:(1) to get their responses on what they consider the best reward system that motivates them and enhances their performance at work, and (2) to help evaluate the way performance is affected by reward systems and determine the kinds of rewards considered as the most fitting in the Lebanese banking sector. The analysis from empirical findings shows that a fair reward system increases the performance in the banking sector and supports the use of a more comprehensive reward approach responding to employee needs and expectations. These expectations may eventually depend on employees’ values at that specific time of their lives. These findings exhibit the originality of the Lebanese banks’ reward systems and highlight the influence of these systems on the job satisfaction of employees. This is valuable to organizational behavior scholars, banks and practitioners who are interested in the role that rewards systems play in employment behavior.