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Rewards have been found to be a potential source that contributes to employees’ motivation and job satisfaction(Galanou, Georgakopoulos, Sotiropoulou, and Dimitris, 2010). However, many organizations face difficulties inidentifying the types of rewards that are more preferable and more appropriate in order to increase employees’ jobsatisfaction. Therefore, this study was carried out to investigate the relationship between rewards and jobsatisfaction, as well as to identify the types of reward that affect job satisfaction, using data collected from frontlineemployees in four-star and five-star hotels in Klang Valley, Malaysia.Aligned with the literature, the results of correlation analysis revealed that there is a significant and positiverelationship for both financial rewards and non- financial rewards with job satisfaction. This finding is consistentwith prior researches in which they have demonstrated that rewards are indeed associated with job satisfaction(Rehman, Khan, Ziauddin and Lashari, 2010; Ali and Ahmed, 2009; Khalid, Salim and Loke, 2011). The Pearsoncorrelation analysis has clearly showed that financial rewards has coefficient value (r = .819, p < .000) and nonfinancial rewards has coefficient value (r = .740, p < .000) which means, an increase in rewards could actually resultin increased employee satisfaction. Generally, when rewards system is altered, there will be a corresponding changein employees’ job satisfaction. Therefore, these results supported the hypotheses of the present study.
The impact of the different categories of rewards has been identified using regression analysis. The result
revealed that financial rewards provide greatest impact on job satisfaction as it has larger beta value (β = .597, p <
.01) as compared to non-financial rewards (β = .438, p < .01). Although the majority of the respondents were not
satisfied with their past salary increase, financial rewards have remained as preferred significant rewards that they
look forward to. The fact that frontline employees’ work is repetitive, with little responsibilities and creativity, it is
therefore has lead them to focus more on financial rewards (Galanou, Georgakopoulos, Sotiropoulou, and Dimitris,
2010). McGregor (1985) argued that in jobs where boredom is developed, higher payments are very important as
employees hope to find their satisfaction outside their work.
On the other hand, frontline employees agreed that non-financial rewards, like recognition, were perceived as
important to the attainment of job satisfaction. Employees might expect for more returns beyond financial rewards.
This is because once they are satisfied with their pay they will proceed to fulfill the next level of needs. This concept
was emphasized by Maslow’s Hierarchy of Needs. Herberg’s motivation and hygiene theory also suggested that
salary only helps to prevent employees’ dissatisfaction, but recognition could contribute to long term positive effect
on employees’ job satisfaction which they found something more meaningful in their job (Lai, 2009).
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