The Impact of Reward System on Employee Job Performance: A Case of Commercial Banks in Putrajaya
DOI:
https://doi.org/10.56532/mjbem.v2i2.257Keywords:
Reward System, Employee Performance, Bonus and Incentives, Recognition, Commercial BanksAbstract
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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