The Impact of Awards on Intrinsic Motivation and Job Satisfaction of Multi-Level Marketing Members in Riau Islands Province, Indonesia

Abstract

Facts from the Multi-Level Marketing (MLM) industry show that people often change companies, 90% of distributors are dissatisfied and frustrated, and only last up to 3 months before quitting MLM. Reward management is the main strategy to create a motivated and committed work team. This study examines the impact of rewards on intrinsic motivation and job satisfaction in MLM members, where the incidental sample method is chosen. A total of 140 samples participated in this study. The data were analyzed using descriptive statistics and Structural Equation Modelling (SEM)–Analysis of Moment Structure (AMOS). The result indicates that intrinsic and extrinsic non-financial rewards significantly positively affect intrinsic motivation. Also, this study found that intrinsic motivation, intrinsic non-financial rewards, and extrinsic financial rewards significantly and positively affect job satisfaction. Besides that, the extrinsic non-financial reward does not affect job satisfaction. In conclusion, this study has successfully identified the factors influencing motivation and job satisfaction.