The Effect of Rewards on Employee Performance: A Hospital Example

Abstract

Aim of this study is to examine the relationship between reward and employee performance in the health care industry in Yemen. The data was collected from the workers performing their duties in various hospitals, clinics, and health care centers in Yemen through a questionnaire with a limitation of getting respondents from Marib only. After collecting data from the respondents, correlation and regression analyses were performed to reach conclusions. Regression analysis was performed and computed an R-squared adjusted value of 0.486, which shows that rewards have a strong and positive effect on Employee Performance between the research variables. Correlation analysis showed a significant and positive relationship between reward and employee performance. The results showed that Rewards are highly important for improving employee performance, increasing job satisfaction, and reducing employee turnover. After examining the relationship between reward and employee performance in the healthcare industry of Yemen, recommendations are made for building up a proper reward system in Yemen, which should be allocated reasonable budgets to motivate employees.