Rewards at Work: The Relationship between Rewards and Work Outcomes, and the Importance attached to Rewards

Abstract

The types of rewards one receives from work can have a huge impact on how employees see the organization they are working in. Some research has indicated that additionally the importance one places on these rewards might influence the relationship between rewards and work outcomes (Mottaz, 1985). However, research on these relationships is still limited. Furthermore, it is still unclear how employees determine which rewards are important for them and which not. Thus, the aim of the current research is to understand the relationship between extrinsic and intrinsic rewards and work outcomes, and whether the importance one attaches to these rewards moderates the relationship. Furthermore, goal orientations are assessed to help explain why employees place valence on certain types of rewards. The results of multiple regression analyses from the data of 182 employees showed that both types of rewards influence work outcomes. Intrinsic rewards had higher correlations with work outcomes and explained more variance in them. The results revealed no moderation effect in any of the relationships between availability of rewards and work outcomes. However, importance attached to intrinsic rewards showed to be an important contributor on work outcomes. Finally, mastery goal orientation was significantly associated with importance attached to intrinsic rewards. Theoretical and practical implications are discussed in the light of these findings, and suggestions for future research are given.