The Impact of Reward System on Employee Job Performance: A Case of Commercial Banks in Putrajaya
DOI:
https://doi.org/10.56532/mjbem.v2i2.257Abstract
This study examined the relationship between reward systems and employee job performance in commercial banks operating in Putrajaya, Malaysia. Guided by a conceptual framework linking four independent variables - bonus/incentives, recognition, healthcare benefits, and promotion - to employee performance, the study adopted a quantitative, descriptive research design. A structured questionnaire using a five-point Likert scale was distributed to employees of eight commercial banks in Putrajaya (Affin Bank, Alliance Bank, AmBank, CIMB Bank, MBSB Bank, Maybank, Muamalat Bank, and RHB Bank), from a population of 200 employees. Of 127 questionnaires distributed, 121 were validly completed and analysed using SPSS. The instrument demonstrated strong internal consistency (Cronbach's alpha = 0.902) and satisfactory validity (Pearson correlation, p < .05 for all items tested). Regression analysis showed that bonus/incentives (R2 = .341, F(3,116) = 20.002, p = .000) and recognition (R2 = .321, F(5,115) = 10.876, p = .000) had statistically significant positive relationships with employee job performance, whereas healthcare benefits (R2 = .037, F(4,116) = 1.128, p = .347) and promotion (R2 = .065, F(4,116) = 2.015, p = .097) did not reach significance. The findings suggest that commercial banks should prioritise financial incentives and formal recognition practices, while continuing to invest in healthcare and promotion structures as complementary, longer-term retention tools, to cultivate a high-performance culture.
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