Abstract
Purpose of the study is to assess the influence of non-financial rewards in employee performance as well as to measure mediating effect of motivation between non-financial rewards and Employee performance. Non-financial rewards like recognition, job security, and the chance for professional advancement, employee empowerment, etc., inspire workers more than financial benefits. Online survey is used to collect the perceptions of 241 individuals working in Islamic banks of Pakistan. The conclusion of the study shows that non-financial rewards, career development, empowerment, and working environment have positive and significant impact on employee performance. Moreover, the mediating role of motivation is proved between the non-financial rewards (empowerment, career development, and the working environment) and employee performance. On the behalf of results, It is suggested that organization should use non-monetary benefits with financial benefits to maximize the employees’ performance.
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