The Effect of Reward Systems on Motivation and Employee Performance Among Technical Universities

This study examines the moderating effect of reward systems on the relationship between employee motivation and performance, focusing on the impact of both monetary and non-monetary rewards. Grounded in Herzberg’s Two-Factor Theory and Reinforcement Theory, the research explores how intrinsic rewards, such as recognition and a sense of purpose, and extrinsic rewards, including bonuses and job security, interact with reward systems to influence employee performance. A cross-sectional quantitative research design was employed, drawing data from employees across diverse industries. The findings indicate a strong positive correlation between motivation and performance, with intrinsic motivators playing a more significant role in driving long-term employee engagement. Reward systems emerged as critical moderators, amplifying the effects of motivation when perceived as fair, transparent, and well-structured. Non-financial incentives, such as career development opportunities, were found to complement financial rewards in fostering employee commitment and job satisfaction. Conversely, perceived inequities in reward distribution weakened employee trust and negatively affected performance.