The Impact of Extrinsic and Intrinsic Rewards on Employee Satisfaction: Towards a Reward Management Plan

Abstract

This study evaluated how extrinsic and intrinsic could potentially impact the levels of employee satisfaction at Y College, in order to suggest inputs for reward management strategies. The study involved 69 non-teaching staff members from Y College, representing the entire population of interest. The researcher employed total enumeration, ensuring ethical standards and rigorous data collection and analysis for all participants involved in the study. The goal of this research was to propose a reward management plan incorporating Herzberg's Two Factor Theory of Motivation that could enhance employee satisfaction. Based on the conclusions derived in this study, the following are the recommendations: (1) Offer flexible work arrangements, considering the significant number of female employees balancing work and family responsibilities. (2) Implement diverse recognition programs alongside cash rewards, including employee of the month awards, team-based incentives, and non-monetary rewards like extra time off or professional development opportunities. (3) Maintain consistency and transparency in reward systems across all employees, irrespective of demographic variables. (4) Foster a culture of appreciation by celebrating achievements, milestones, and performance -based incentives. (5) Address gender gaps in job satisfaction through gender-sensitive policies, support resources, diversity promotion, regular monitoring, training, and leadership commitment to gender equality. (6) Align reward systems with organizational objectives and values, acknowledging individual preferences and career goals. (7) Adopt the proposed Rewards Management Plan to integrate both hygiene and motivator factors, optimizing intrinsic and extrinsic rewards for enhanced employee satisfaction.