Driving employees’ motivation through reward system in selected organisations in Lagos State, Nigeria

Abstract: In contemporary times, for organisations to meet up with expectations of employees and retain talents, an indebt study of employees’ motivation is desirable. The broad objective of the study is to examine the effect of reward system on employee motivation in selected organisations in Lagos state, Nigeria. The population of the study comprises full time employees of both private and public organizations in Lagos state. A 25-item validated structured questionnaire served as the research instrument. A sample size of 500 was drawn from 20 randomly selected organizations. The relative frequency and multiple regression analysis were employed as the analytical techniques. The findings showed that the dimensions of reward system, such as employee promotion, bonus pay and employee recognition exhibited positive effect on employee motivation. On the bases of these findings, the study concluded that reward system is critical to employees’ motivation and commitment in any organisation. Given that rewards enhance motivation, foster employees’ commitment and create a sense of belonging, which enables employees to be in alliance with organisational goals. Finally, it is recommended that organizations should design a well-structured system of promotion, bonuses and recognition for their employees in order to improve employee motivation. More emphasis should be given to intrinsic reward system. This is because intrinsic motivation where work is its own reward seems the best way to accomplish transformative, creative and innovative goals by organizations.

Keywords: reward, promotion, bonus, recognition, employee motivation


Peter A. Olanye, corresponding author, associate professor, Delta State University, Faculty of Management Sciences, Asaba Campus, Nigeria, e-mail: olannyeap (at) gmail.com

Emmanuel C. Eyela, Delta State University, Faculty of Management Sciences, Asaba Campus, Nigeria, e-mail: emmanuel.eyela (at) gmail.com

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