HOW APPRECIATION AND REWARDS IMPACT EMPLOYEE

PERFORMANCE AND SATISFACTION

Alyssa Khairafani
School of International Business Administration
Faculty of Business and Social Sciences
International University Liaison Indonesia
BSD City, Serpong, Tangerang, Indonesia
E-mail: alyssakhaira@gmail.com

Malinda Shella Rahmadani

School of International Business Administration
Faculty of Business and Social Sciences
International University Liaison Indonesia
BSD City, Serpong, Tangerang, Indonesia
E-mail: malindarahmadani27@gmail.com

Yosef Darien Dimas Putera

School of Management
Faculty of Business and Social Sciences
International University Liaison Indonesia
BSD City, Serpong, Tangerang, Indonesia
E-mail: dimasputera@gmail.com

ABSTRACT
This paper examines the effect of appreciation and rewards and how it impact employees performance
and satisfaction as a whole in an organization. It aims to look at how much employee performance and satisfaction
can be influenced by appreciation and rewards within a company. Employee motivation is affected by multiple
factors such as job passion, type of occupation sector, working environment, and in general the organizational
culture of the company. If appreciation and rewards provide for a more positive light to transcend motivation, how
much of an effect will that really have towards employee productivity, satisfaction, and business performance as a
whole? We take a look at today’s modern workforce and youths to see what shapes the willingness for people to
work, and how far it can take us.

Keywords: Appreciation, rewards, performance, satisfaction, motivation, productivity

ABSTRAK
Makalah ini mengkaji dampak apresiasi dan penghargaan, dan bagaimana dampaknya terhadap kinerja
dan kepuasan karyawan secara keseluruhan dalam suatu organisasi. Makalah ini bertujuan untuk melihat
seberapa besar kinerja dan kepuasan karyawan dapat dipengaruhi oleh apresiasi dan penghargaan dalam
perusahaan. Motivasi karyawan dipengaruhi oleh beberapa faktor seperti gairah kerja, jenis sektor pekerjaan,
lingkungan kerja, dan budaya organisasi perusahaan. Jika penghargaan dan imbalan menyediakan lebih banyak
sisi positif untuk melampaui motivasi, seberapa besar pengaruhnya terhadap produktivitas, kepuasan, dan kinerja
bisnis karyawan secara keseluruhan? Kami melihat tenaga kerja modern dan kaum muda saat ini untuk melihat
apa yang membentuk kesediaan orang untuk bekerja, dan seberapa jauh hal itu dapat membawa kita.

Kata kunci: Apresiasi, penghargaan, kinerja, kepuasan, motivasi, produktivitas

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I. INTRODUCTION
Rewards and appreciation are typical ways to increase an employee’s productivity within
an organization as well as to improve job satisfaction. Thus, when an employee is rewarded and
given appreciation, it can be seen as one of the many motives for them to be more productive in
an organization. Rewards and appreciation do not only increase productivity but also increase
the confidence of working in a team, as it is not only about being individually competitive
amongst colleagues. Whether the employees know the type and scale of rewards, it would place
a sense of importance in the need to do certain tasks and reach certain goals. Employees’
happiness is essential to the organization. Happy and motivated employees make for a more
productive business. Without them, the organization would not earn as much or perhaps even
provide anything in return.

Figure 1: Why Leaders Need To Embrace Employee Motivation

Source: (Comaford, 2018)

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 Many perceive money as the ultimate reward, although other contributing factors are
also at play. Some find satisfaction through money alone, although others need another sense of
approval or security to comply to being motivated. Social recognition in organizations are vital,
especially for millennials who have a certain amount of care for social status. Engaging with
employees through social media platforms such as Instagram, Facebook and Twitter would help
higher-ups to foster closer relationships and interact on a personal level, thus would help with
ensuring loyalty (Wong, 2017). A study conducted in 2015 by economists at the University of
Warwick found that happiness in the workplace led to an increase of 12% in productivity of
employees, while unhappy employees proved that they are 10% less productive than their
counterparts (Revesencio, 2015).

Providing the opportunity to learn new skills and face new challenges will make
employees feel needed and fuel job passion (Wong, 2017). Managers should understand that
employees are not pets that are sufficient enough to be fed with work benefits, but should
moderately contribute to an employee’s life outside of work as it influences their attitude (Wong,
2017). Investigating whether the influence of rewards and appreciation affects the productivity
and performance of employees within an organization is the goal, but the main aim is to see how
much of an effect this aspect has in affecting them psychologically. Furthermore, it is to see if
a person’s background such as education, gender, job position, number of children etc. can affect
how motivated and satisfied they are within a certain occupation sector.

II. LITERATURE REVIEW

II.1. MOTIVIATING EMPLOYEES
Behind every company’s ability to reach its goals, innovate visions and accomplish
missions are a dedicated workforce. Every company has to motivate its workers to reach
company goals, as motivated workers are surely to provide for the best results. There are 5
psychological theories of motivation to increase productivity (McLeod, 2018):

1. Hertzberg’s Theory
 Motivational factors: the workers focus on the work itself, the content of the
work. Caused by responsibility, achievement, recognition and even just because
the workers like the job.
 Hygiene factors: these factors are provided by the company, can lead to
dissatisfaction or satisfaction and a lack of motivation. For instance; wage,
working conditions, company policies, benefits and relationships toward others.

How to apply the theory:

 Appreciate, respect, support and understanding employees needs can make
them feel motivated. Each employee can grow, learn and progress through
with guidance.
 Serve appropriate and safe working conditions, wages, fair company policies,
be attentive and create a supportive; if possible a personal, relationship
between the workers at any level.

2. Maslow’s Hierarchy Needs

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 Figure 2: Maslow's Hierarchy of Needs

Source: (McLeod, 2018)

 Physiological: the needs in order for the person to survive.

 Safety: the needs in order for the person to feel safe and secured.
 Belongingness: the needs in order for the person to feel loved and cared about,
such as: friendships, relationships and family.
 Esteem: the needs in order for the person to feel confident and respected by
others.
 Self-actualization: the needs in order for the person to achieve goals and become
the person who s/he wants to be.

How to apply:
 Sharing and showing the workers the value of their roles, so the workers are
able to feel respected and motivated to work harder.
 Ensure that employees understand their role and contribution to the company.

3. Hawthorne Effect
Pay attention to working conditions. Working conditions tend to motivate the
employees, such as; lightning, working hours and breaks. The workers can be more productive
when the workers receive enough attention regarding the working conditions that the workers
get. It will create the workers’ motivation to work harder and perform better.

4
 How to apply the theory:
Try to ask the workers to update, so the company’s side can give feedback. Let the
workers know that the head officer knows the progress, what the workers up to and how are the
workers doing. By then, it means that the company cares about its workers.

4. Expectancy Theory
 Expectancy: workers who want to achieve the goals and optimist that they will
get the goals will be strongly motivated. It is different when the workers do not
have self-confidence of getting what they want, the workers will be pessimistic.
Workers are humans too, if they like the works and feel responsible for the
works, then the workers will feel more motivated.
 Instrumentality: workers who expect a reward, workers believe that they will
receive a reward if they meet performance expectations. So it become the
workers motivation to do their best in order to get a reward.
 Valence: how valuable the reward for the workers. If the workers desire the
reward but receive other things, the motivation will be low.

How to apply the theory:

 Discuss the reward. What kind of rewards that the workers want, in case the
company and the workers can negotiate. After the dealing, the company will
provide the reward that workers deserve.
 Reward doesn’t always have to come in the form of rising wage and bonuses.

II.2. THE IMPACT OF MOTIVATING EMOPLOYEES

Being able to know how to motivate the organization’s workforce will help ensure that
the employees enthusiastically bringing their best efforts when working, thus, helping the
company meets its sales and performance goals (Craig, 2017). Furthermore, “high levels of
employee motivation are intrinsically linked to high levels of employee engagement,” it is
important for the organization to pay attention to their employees (Napolitano, 2017).

According to Craig (2017), happy employees are productive employees. Furthermore,

“controlled experiments reveal productivity gains of anywhere from 12% to 20% when
measures are taken to ensure employees have a physically welcoming atmosphere in which to
perform their duties, flexible scheduling” and many more (Craig, 2017). Additionally, there are
many benefits in motivating employees in an organization. Motivation is important because by
being able to comprehend the reasoning behind employees’ actions while also being able to use
those results to motivate the employees themselves, it can improve the organization as a whole,
most importantly the business performance of the organization (Napolitano, 2017). Moreover,
other than the fact that employees’ engagement increases, motivated employees handle
"uncertainty more easily; are better problem-solvers; have higher levels of innovation,
creativity, and customer-centricity; are more profitable; create higher levels of customer
satisfaction; and increase employee retention rates” (Napolitano, 2017).

Treating employees with the kind of respect that fosters thoughtfulness thus creating
highly motivated employees means that they themselves have some autonomy when making

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decisions, empowering them to a certain degree without overstepping boundaries. Thus,
employers need to exhibit respect for their employees by letting them choose for themselves
because “working with others means growing and learning together” (Craig, 2017).

II.3. THE IMPORTANCE OF REWARDS AND APPRECIATIONS

Employees are key players in the success of any business or organization, hence, praises
and recognition have always been crucial in improving employee productivity, engagement and
retention, thus, managers need to understand the significant it has especially the positive impact
it pertains on business growth and enriches work culture in the organization (Chris, 2016;
Bhatia, 2017). According to Bhatia (2017), employees who gets praises and recognition shows
increased level of performance, increase in concentration on jobs, more happy, demonstrate
effective teamwork, high engagement level, and increase in employees retention.

Figure 3: Employee Recognition

Source: (Bhatia, 2017)

Satisfied employees tend to stay with their organization thus, their performance also is
being affected. Not only will the organization benefit from increased sales and productivity, it
will also save on time and money from having to train new hires because of employee retention,
thus, decreasing the cost and expenses (Chris, 2016).

II.4. FOSTERING EMPLOYEE SATISFACTION

Employee satisfaction is a tough challenge for managers to face due to the diversity of
today’s workforce that consists of seniors in near-retirement, middle-aged workers seeking
better levels of pay and status, as well as the continuous growth of youths looking for a place to
belong when finally becoming members of society. In hindsight, it’s complex, and complexity
makes way for obstacles. Companies then look towards simplicity; a less costly method than
the alternative of only providing employees with a large raise, big bonuses or promotions (Lucs,
2016).
This is employee satisfaction according to Susan M. Heathfield (2018), “employee
satisfaction is the terminology used to describe whether employees are happy and contented
and fulfilling their desires and needs at work. Many measures purport that employee satisfaction
is a factor in employee motivation, employee goal achievement, and positive employee morale
in the workplace” (Heathfield, 2018).

Those who work may strive simply for personal accomplishment, but most of the time
people actually want to be looked at and rewarded for what they have achieved. Monetary goals
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can only go so far because it is pride in recognition that places them above everybody else in a
hierarchy.

II.4.1. PURPOSES OF REWARD SYSTEMS AND APPRECIATION

Appreciation and rewards are a working strategy in order to be able to retain good
employees, reduce turnover and increase the willingness to work. According to Nick Lucs
(2016), “recognition involves acknowledging an employee for specific accomplishments
achieved, actions taken, or attitudes exemplified through their behavior (Lucs, 2016).

Today’s competitive market for workers is fierce. Companies want to hire, retain, and
maintain the best employees. A good organizational structure can make for a great image
amongst stakeholders and competitors. A good company, however, cannot only be measured
from the intelligent and skilled workers that reside in it, but also if they have a good reward
structure to satisfy those employees and maintain them. Every manager or owner loves a skilled
employee, but what many can agree to love most is if the employee also loves his or her job;
also known as affective commitment. Impacts of an excellent reward structure can influence the
effectiveness of a company, which includes but is not limited to: good punctuality of workers,
less absences, a good working morale, commitment, excitement to do the job, less workplace
stress, and good performance and productivity (Hurd, Barcelona, & Meldrum, 2008).

Appreciation is a psychological human need. Giving employee’s recognition for a good

business result ensures that the workers are made clear what the business objectives consists of
and that company goals are being communicated properly. When contribution is placed in the
spotlight, workers are valued. They become satisfied, happy, and motivated to maintain their
good work ethic as well as the self-development to further improve on that work (Harrison,
2005).

II.4.2. THE ISSUE WITH EMPLOYEE MOTIVATION

There are four very general factors in employee motivation, in which are guidance,
direction, resources and rewards. All strive for the goal of closer engagement with, efficient
recruitment as well as the retention of employees. Human resources management becomes vital
in today’s era as they are the department that will handle the obstacles hindering the company
from that goal. Several motivational tools are put into place to tackle the issue; however,
companies must keep in mind that the modern generation of employees are increasingly more
diverse and their ways of thinking changes with the era. Not everyone can be motivated the
same way, and most importantly not everyone is motivated solely by money (Nabi, 2017).

II.4.3. MOTIVATING EMPLOYEES IN INDONESIA

According to George B. Whitfield, the business culture of Indonesia is extremely
different than Western views. Monetary compensation is important for any business, although
the implementation and rise of this factor will not generally cause a great change when needed.
Indonesians tend to be very present-oriented, so as long as they have enough resources to make
it through as of this moment, promising them higher raises based on future performance will not
really make that much of a difference. George says this is what frustrates many expatriate
managers with Indonesian subordinates. He says that even if you give your Indonesian
employees talks or meetings or large seminars concerning as to why the company has to improve
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and make more money, those talks in won’t necessarily be a turning point in affecting business
productivity. Money can only get them so far, as they are not heavily financially motivated. It
would seem to be that appearance, work and social status are what is most important for
Indonesians rather than the rewards that come with it. Personal closeness with the boss and the
effort in trying to please them also motivates their productiveness. In Indonesia, business is
mostly a personal matter, no matter which position you are in. In conclusion it can be said that
Indonesians are generally very social creatures who strive for that closeness and tight
networking in order to gain favorable status – based on work position and not work performance
- in a social hierarchy (Whitfield, 2018).

III. RESEARCH METHODOLOGY

In order to support the research, quantitative data was taken to measure the variable and
verify the existing theories and hypothesis. The purpose of this research is to understand the
meaning behind rewards and appreciation and how it affects employees’ performances in an
organization, thus, this is a mixture of both quantitative and qualitative researches.

III.1. DATA ANALYSIS

The results of the survey is based on individuals’ respondents that were distributed
online. A total of 191 correspondents responded to the questionnaires. The survey was
conducted to understand how an individual’s back ground such as occupation and gender affects
how they feel motivated in their respective organization thus has the possibility of increasing
their productivity and satisfaction in their workplace.

The questionnaires were distributed via e-mails, online, and through social media
applications. The total number of questions that were distributed to the respondents were 19
questions, all pertaining about their backgrounds and their opinion regarding their respective
companies.

Below are the questions that were distributed:

1. Blood Type
2. Age
3. Nationality
4. Religion
5. Ethnicity
6. Gender
7. Education
8. Marital Status
9. Number of Children
10. Occupation
11. Zodiac
12. I often work overtime (if any) by choice.
13. I work overtime (if any) purely for the monetary rewards.
14. Company provides me with a reasonable number of holidays.
15. Company provides me with reasonable bonus pay.
16. I often arrive early to work by choice.
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17. I receive a fair amount of recognition deserving of the work I do.
18. Company provides for good incentives to motivate me to work.
19. Company provides me with reasonable insurance pay.

For questions 1-11, is was multiple choice. Ages ranges from below 18 to over 55. There
were 17 different occupations that were listed ranging from arts to engineering. Questions 12 to
19 were statements that the respondents have to decide whether they agree with the statement
being said or not. It requires the respondent’s opinion regarding their respective organizations,
hence, it was a multiple choice from 1; strongly disagree, 2; slightly disagree, 3; neutral, 4;
slightly agree, and 5; strongly agree.

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 III.2. DESCRIPTIVE ANALYSIS
Table 1: Descriptive Statistic
Descriptive Statistics
Std.
N Range Minimum Maximum Sum Mean Variance Skewness Kurtosis
Deviation
Std. Std. Std.
Statistic Statistic Statistic Statistic Statistic Statistic Statistic Statistic Statistic Statistic
Error Error Error
BloodType 191 4 1 5 477 2.50 .066 .905 .820 .094 .176 .008 .350
Age 191 5 1 6 620 3.25 .107 1.475 2.176 .631 .176 -.727 .350
Nationality 191 2 1 3 194 1.02 .012 .161 .026 11.078 .176 128.385 .350
Religion 191 4 1 5 312 1.63 .073 1.006 1.012 1.571 .176 1.832 .350
Ethnicity 191 20 1 21 772 4.04 .339 4.685 21.946 1.806 .176 2.778 .350
Gender 191 2 1 3 264 1.38 .036 .498 .248 .618 .176 -1.304 .350
Education 191 4 1 5 398 2.08 .066 .914 .835 1.297 .176 2.428 .350
MaritalStatus 191 4 1 5 379 1.98 .076 1.044 1.089 .256 .176 -1.536 .350
NumberofChildren 191 3 1 4 325 1.70 .066 .918 .842 .752 .176 -1.083 .350
Occupation 191 16 1 17 1824 9.55 .354 4.895 23.965 .097 .176 -1.339 .350
Zodiac 191 11 1 12 1204 6.30 .234 3.232 10.444 .052 .176 -1.082 .350
OvertimeByChoice 191 4 1 5 676 3.54 .082 1.137 1.292 -.522 .176 -.394 .350
OvertimeForMoney 191 4 1 5 519 2.72 .095 1.307 1.709 .223 .176 -1.038 .350
NumberofHolidays 191 4 1 5 710 3.72 .081 1.126 1.267 -.476 .176 -.506 .350
Bonus Pay 191 4 1 5 674 3.53 .080 1.104 1.219 -.240 .176 -.511 .350
Arrived Early 191 4 1 5 714 3.74 .073 1.008 1.015 -.453 .176 -.336 .350
Recognition 191 4 1 5 723 3.79 .069 .958 .917 -.321 .176 -.534 .350
Good Incentive 191 4 1 5 687 3.60 .079 1.086 1.179 -.264 .176 -.558 .350
Insurance Pay 191 4 1 5 692 3.62 .087 1.198 1.436 -.554 .176 -.400 .350
Valid N (listwise) 191

Source: SPSS

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 Table 1 shows a descriptive statistic data that were collected at the end of the research. There are a total of 191 respondents,
thus an n value that appeared in this table represent that there are no missing values in the data base. The minimum value shows that
1 as the smallest data and the maximum variable varies amongst the questions that were asked. According the table, the mean value
shows the average of the data. According to the data, the Occupation question has the highest mean with average of 9.55. Over half
of the data shows a negative number of its skewness.

III.3. FREQUENCIES

Table 2: Statistics
Statistics
Marital Number of
Blood Type Age Nationality Religion Ethnicity Gender Education Occupation
Status Children
Valid 191 191 191 191 191 191 191 191 191 191
N
Missing 0 0 0 0 0 0 0 0 0 0
Mean 2.50 3.25 1.02 1.63 4.04 1.38 2.08 1.98 1.70 9.55
Std. Error of Mean 0.066 0.107 0.012 0.073 0.339 0.036 0.066 0.076 0.066 0.354
Median 2.51a 2.91a 1.01a 1.44a 1.79a 1.38a 1.98a 1.91a 1.56a 9.13a
Mode 3 2 1 1 1 1 2 1 1 17
Std. Deviation 0.905 1.475 0.161 1.006 4.685 0.498 0.914 1.044 0.918 4.895
Variance 0.820 2.176 0.026 1.012 21.946 0.248 0.835 1.089 0.842 23.965
Skewness 0.094 0.631 11.078 1.571 1.806 0.618 1.297 0.256 0.752 0.097
Std. Error of
0.176 0.176 0.176 0.176 0.176 0.176 0.176 0.176 0.176 0.176
Skewness
Kurtosis 0.008 -0.727 128.385 1.832 2.778 -1.304 2.428 -1.536 -1.083 -1.339
Std. Error of
0.350 0.350 0.350 0.350 0.350 0.350 0.350 0.350 0.350 0.350
Kurtosis
Range 4 5 2 4 20 2 4 4 3 16
Minimum 1 1 1 1 1 1 1 1 1 1
Maximum 5 6 3 5 21 3 5 5 4 17
Sum 477 620 194 312 772 264 398 379 325 1824
a. Calculated from grouped data. b. Multiple modes exist. The smallest value is shown
Source: SPSS
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 Table 3: Statistics (Continued)
Statistics
Zodiac OvertimeByChoice OvertimeForMoney NumberofHolidays BonusPay ArrivedEarly Recognition GoodIncentive InsurancePay

N Valid 191 191 191 191 191 191 191 191 191
Missing 0 0 0 0 0 0 0 0 0
Mean 6.30 3.54 2.72 3.72 3.53 3.74 3.79 3.60 3.62
Std. Error of
0.234 0.082 0.095 0.081 0.080 0.073 0.069 0.079 0.087
Mean
Median 6.21a 3.63a 2.65a 3.78a 3.53a 3.79a 3.81a 3.60a 3.71a
Mode 2 4 3 3d 3 4 4 3 3
Std.
3.232 1.137 1.307 1.126 1.104 1.008 0.958 1.086 1.198
Deviation
Variance 10.444 1.292 1.709 1.267 1.219 1.015 0.917 1.179 1.436
Skewness 0.052 -0.522 0.223 -0.476 -0.240 -0.453 -0.321 -0.264 -0.554
Std. Error of
0.176 0.176 0.176 0.176 0.176 0.176 0.176 0.176 0.176
Skewness
Kurtosis -1.082 -0.394 -1.038 -0.506 -0.511 -0.336 -0.534 -0.558 -0.400
Std. Error of
0.350 0.350 0.350 0.350 0.350 0.350 0.350 0.350 0.350
Kurtosis
Range 11 4 4 4 4 4 4 4 4
Minimum 1 1 1 1 1 1 1 1 1
Maximum 12 5 5 5 5 5 5 5 5
Sum 1204 676 519 710 674 714 723 687 692
a. Calculated from grouped data. b. Multiple modes exist. The smallest value is shown.
Source: SPSS

According to the data and Table 2 and Table 3, there are no missing values, hence, all 191 correspondents have answered all
the questions that were distributed in the questionnaire.

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III.4. REALIABILITY

Table 4: Case Processing Summary

Case Processing Summary
N %
Valid 191 100.0
a
Cases Excluded 0 0.0
Total 191 100.0
a. Listwise deletion based on all variables in the procedure.
Source: SPSS

Table 5: Reliability Statistic

Reliability Statistics
Cronbach's
Alpha Based
N of
Cronbach's Alpha on
Items
Standardized
Items
0.216 0.565 19
Source: SPSS

The Cronbach’s Alpha is a test that measures the reliability scale or the internal consistency of a set of data. The result α
coefficient of the reliability ranges from the number 0 to 1. The closer it is to 1, the higher the covariance is, hence, the higher the
consistency will be. The closer it is to 0, the lower the consistency it is. The α coefficient for the tested items is 0.216 which shows
the data is fairly inconsistent. There are many reasons why the reliability of the data may not be high. For instance, many people did
not truthfully answer the question, may not fully understood what some of the questions were asking, the timing of when they were
answering the question might be wrong, or they did not answer the questions as truthful as possible.

13
III.5. FACTOR ANALYSIS

Table 6: Correlation Matrix

Inter-Item Correlation Matrix
Marital Numberof Occupati
BloodType Age Nationality Religion Ethnicity Gender Education Zodiac
Status Children on
BloodType 1.000 -0.072 0.018 -0.088 0.073 0.160 -0.095 0.003 -0.048 0.003 0.027
Age -0.072 1.000 0.116 -0.180 -0.127 -0.071 0.317 0.755 0.762 -0.234 -0.044
Nationality 0.018 0.116 1.000 0.036 0.006 -0.010 0.062 0.095 0.067 -0.144 0.072
Religion -0.088 -0.180 0.036 1.000 0.262 -0.034 -0.041 -0.191 -0.096 -0.024 0.012
Ethnicity 0.073 -0.127 0.006 0.262 1.000 0.007 -0.097 -0.123 -0.078 0.083 -0.097
Gender 0.160 -0.071 -0.010 -0.034 0.007 1.000 0.068 -0.090 -0.049 -0.048 -0.027
Education -0.095 0.317 0.062 -0.041 -0.097 0.068 1.000 0.250 0.256 -0.254 -0.018
MaritalStatus 0.003 0.755 0.095 -0.191 -0.123 -0.090 0.250 1.000 0.759 -0.196 -0.047
NumberofChildren -0.048 0.762 0.067 -0.096 -0.078 -0.049 0.256 0.759 1.000 -0.160 -0.067
Occupation 0.003 -0.234 -0.144 -0.024 0.083 -0.048 -0.254 -0.196 -0.160 1.000 -0.047
Zodiac 0.027 -0.044 0.072 0.012 -0.097 -0.027 -0.018 -0.047 -0.067 -0.047 1.000
OvertimeByChoice -0.027 0.068 -0.018 -0.015 -0.029 0.108 0.083 0.016 -0.006 0.046 0.028
OvertimeForMoney 0.133 -0.302 -0.029 0.057 -0.010 0.078 -0.249 -0.254 -0.185 0.207 0.123
NumberofHolidays -0.161 0.207 -0.120 -0.134 0.015 -0.050 0.085 0.269 0.188 -0.078 0.176
BonusPay -0.175 0.194 0.130 -0.099 0.038 0.033 0.024 0.195 0.193 0.020 0.133
ArrivedEarly -0.018 0.100 -0.007 -0.080 -0.149 0.211 0.098 0.071 0.137 -0.082 0.033
Recognition -0.168 0.272 0.056 0.060 -0.120 0.063 0.105 0.176 0.226 -0.115 0.110
GoodIncentive -0.159 0.144 -0.114 -0.054 -0.065 -0.006 0.008 0.115 0.169 0.034 0.128
InsurancePay -0.025 0.163 -0.051 -0.006 0.027 -0.031 -0.048 0.075 0.122 0.010 0.111
Source: SPSS

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 Table 7: Correlation Matrix (Continued)
Inter-Item Correlation Matrix
OvertimeBy Insurance
OvertimeForMoney NumberofHolidays BonusPay ArrivedEarly Recognition GoodIncentive
Choice Pay
BloodType -0.027 0.133 -0.161 -0.175 -0.018 -0.168 -0.159 -0.025
Age 0.068 -0.302 0.207 0.194 0.100 0.272 0.144 0.163
Nationality -0.018 -0.029 -0.120 0.130 -0.007 0.056 -0.114 -0.051
Religion -0.015 0.057 -0.134 -0.099 -0.080 0.060 -0.054 -0.006
Ethnicity -0.029 -0.010 0.015 0.038 -0.149 -0.120 -0.065 0.027
Gender 0.108 0.078 -0.050 0.033 0.211 0.063 -0.006 -0.031
Education 0.083 -0.249 0.085 0.024 0.098 0.105 0.008 -0.048
MaritalStatus 0.016 -0.254 0.269 0.195 0.071 0.176 0.115 0.075

NumberofChildren -0.006 -0.185 0.188 0.193 0.137 0.226 0.169 0.122

Occupation 0.046 0.207 -0.078 0.020 -0.082 -0.115 0.034 0.010

Zodiac 0.028 0.123 0.176 0.133 0.033 0.110 0.128 0.111

OvertimeByChoice 1.000 -0.042 0.235 0.115 0.262 0.189 0.139 0.123

OvertimeForMone
-0.042 1.000 -0.069 0.013 0.171 0.010 0.038 0.147
y

NumberofHolidays 0.235 -0.069 1.000 0.600 0.208 0.398 0.552 0.338

BonusPay 0.115 0.013 0.600 1.000 0.234 0.387 0.526 0.537

ArrivedEarly 0.262 0.171 0.208 0.234 1.000 0.372 0.235 0.206
Recognition 0.189 0.010 0.398 0.387 0.372 1.000 0.438 0.301
GoodIncentive 0.139 0.038 0.552 0.526 0.235 0.438 1.000 0.473
InsurancePay 0.123 0.147 0.338 0.537 0.206 0.301 0.473 1.000
Source: SPSS

The factor analysis that are shown in tables Table 6 and Table 7 examines how the variables inter-correlated with one another.
The factors may or may not be related to one another, hence, those who shows a negative number, it can be interpreted that the

15
variables have little to no relations with one another. On the other hand, the closer the number is to 1, the higher the relation it is
between the two variables.

III.6. REGRESSION

Table 8: Overtime by Choice Regression

Regression Statistics
Multiple R 0.198797
R Square 0.03952
Adjusted R
Square -0.0195
Standard Error 1.147636
Observations 191
Standard Lower Upper Lower Upper
Coefficients t Stat P-value
Error 95% 95% 95.0% 95.0%
Intercept 2.765198 0.758595 3.645157 0.00035 1.268258 4.262138 1.268258 4.262138
BloodType -0.03842 0.095138 -0.40386 0.686799 -0.22616 0.149314 -0.22616 0.149314
Age 0.145495 0.099304 1.465152 0.144634 -0.05046 0.341452 -0.05046 0.341452
Nationality -0.15932 0.525855 -0.30296 0.762269 -1.19699 0.878358 -1.19699 0.878358
Religion 0.018134 0.088732 0.204374 0.838294 -0.15696 0.193229 -0.15696 0.193229
Ethnicity -0.00386 0.018763 -0.20559 0.837346 -0.04088 0.033167 -0.04088 0.033167
Gender 0.274356 0.171857 1.596422 0.112158 -0.06477 0.613482 -0.06477 0.613482
Education 0.09184 0.098904 0.928573 0.354361 -0.10333 0.287008 -0.10333 0.287008
MaritalStatus -0.00096 0.137293 -0.00698 0.994437 -0.27188 0.269963 -0.27188 0.269963
NumberofChildren -0.17996 0.157263 -1.14434 0.25401 -0.49029 0.130365 -0.49029 0.130365
Occupation 0.021182 0.018121 1.168887 0.244003 -0.01458 0.05694 -0.01458 0.05694
Zodiac 0.012814 0.026107 0.490825 0.624151 -0.0387 0.06433 -0.0387 0.06433
Source: SPSS

16
 Table 9: Overtime by Money Regression

Regression Statistics
Multiple R 0.41719
R Square 0.174048
Adjusted R
Square 0.123291
Standard Error 1.224092
Observations 191
Standard Lower Upper Lower Upper
Coefficients t Stat P-value
Error 95% 95% 95.0% 95.0%
Intercept 2.426601 0.809134 2.999012 0.003094 0.829933 4.023269 0.829933 4.023269
BloodType 0.150143 0.101476 1.479591 0.14074 -0.0501 0.350386 -0.0501 0.350386
Age -0.2191 0.10592 -2.06851 0.040029 -0.42811 -0.01008 -0.42811 -0.01008
Nationality 0.155092 0.560888 0.276511 0.782474 -0.95171 1.261896 -0.95171 1.261896
Religion 0.038831 0.094643 0.410292 0.682082 -0.14793 0.225591 -0.14793 0.225591
Ethnicity -0.02081 0.020013 -1.04003 0.299727 -0.0603 0.018677 -0.0603 0.018677
Gender 0.161066 0.183306 0.878673 0.380756 -0.20065 0.522785 -0.20065 0.522785
Education -0.21239 0.105493 -2.01328 0.045583 -0.42056 -0.00422 -0.42056 -0.00422
MaritalStatus -0.16418 0.14644 -1.12113 0.263735 -0.45315 0.124793 -0.45315 0.124793
NumberofChildren 0.246874 0.16774 1.471768 0.14284 -0.08413 0.577875 -0.08413 0.577875
Occupation 0.03498 0.019328 1.809753 0.072011 -0.00316 0.073121 -0.00316 0.073121
Zodiac 0.044685 0.027846 1.604725 0.110317 -0.01026 0.099634 -0.01026 0.099634
Source: SPSS

17
 Table 10: Number of Holidays Regression

Regression Statistics
Multiple R 0.430165
R Square 0.185042
Adjusted R
Square 0.134961
Standard Error 1.046909
Observations 191
Standard Lower Upper Lower Upper
Coefficients t Stat P-value
Error 95% 95% 95.0% 95.0%
Intercept 4.584928 0.692014 6.625483 3.92E-10 3.219373 5.950483 3.219373 5.950483
BloodType -0.23055 0.086788 -2.65647 0.00861 -0.40181 -0.05929 -0.40181 -0.05929
Age 0.002304 0.090588 0.025429 0.979741 -0.17645 0.181062 -0.17645 0.181062
Nationality -1.13257 0.479702 -2.361 0.019301 -2.07917 -0.18598 -2.07917 -0.18598
Religion -0.13989 0.080944 -1.72821 0.085675 -0.29961 0.019839 -0.29961 0.019839
Ethnicity 0.029485 0.017116 1.722664 0.086676 -0.00429 0.063259 -0.00429 0.063259
Gender 0.002321 0.156773 0.014806 0.988203 -0.30704 0.311683 -0.30704 0.311683
Education 0.011218 0.090224 0.124335 0.901189 -0.16682 0.189257 -0.16682 0.189257
MaritalStatus 0.32829 0.125243 2.621223 0.009515 0.081147 0.575433 0.081147 0.575433
NumberofChildren -0.05074 0.14346 -0.35372 0.723964 -0.33383 0.232345 -0.33383 0.232345
Occupation -0.01089 0.016531 -0.65859 0.511006 -0.04351 0.021733 -0.04351 0.021733
Zodiac 0.074979 0.023815 3.14834 0.001924 0.027984 0.121974 0.027984 0.121974
Source: SPSS

18
 Table 11: Bonus Pay Regression

Regression Statistics
Multiple R 0.376577
R Square 0.14181
Adjusted R
Square 0.089072
Standard Error 1.053723
Observations 191
Standard Lower Upper Lower Upper
Coefficients t Stat P-value
Error 95% 95% 95.0% 95.0%
Intercept 2.234415 0.696518 3.207977 0.001584 0.859972 3.608859 0.859972 3.608859
BloodType -0.25782 0.087352 -2.95149 0.003586 -0.43019 -0.08545 -0.43019 -0.08545
Age 0.044208 0.091178 0.48486 0.628369 -0.13571 0.22413 -0.13571 0.22413
Nationality 0.803032 0.482824 1.663199 0.098023 -0.14973 1.755792 -0.14973 1.755792
Religion -0.12189 0.081471 -1.49609 0.136392 -0.28265 0.038879 -0.28265 0.038879
Ethnicity 0.026897 0.017227 1.561318 0.120215 -0.0071 0.060892 -0.0071 0.060892
Gender 0.204982 0.157794 1.299054 0.195596 -0.10639 0.516358 -0.10639 0.516358
Education -0.06021 0.090811 -0.663 0.508185 -0.2394 0.11899 -0.2394 0.11899
MaritalStatus 0.118629 0.126058 0.941066 0.347939 -0.13012 0.367381 -0.13012 0.367381
NumberofChildren 0.099542 0.144394 0.689377 0.491479 -0.18539 0.384474 -0.18539 0.384474
Occupation 0.016663 0.016638 1.001499 0.317937 -0.01617 0.049496 -0.01617 0.049496
Zodiac 0.055162 0.02397 2.301269 0.022529 0.007861 0.102463 0.007861 0.102463
Source: SPSS

19
 Table 12: Arrived Early Regression
Regression Statistics
Multiple R 0.307836
R Square 0.094763
Adjusted R
Square 0.039134
Standard Error 0.987718
Observations 191
Standard Lower Upper Lower Upper
Coefficients t Stat P-value
Error 95% 95% 95.0% 95.0%
Intercept 3.282346 0.652889 5.02742 1.2E-06 1.993997 4.570694 1.993997 4.570694
BloodType -0.03948 0.081881 -0.48211 0.630316 -0.20105 0.1221 -0.20105 0.1221
Age -0.00661 0.085466 -0.07731 0.938464 -0.17526 0.162044 -0.17526 0.162044
Nationality -0.10311 0.45258 -0.22782 0.820045 -0.99619 0.789971 -0.99619 0.789971
Religion -0.04192 0.076367 -0.54898 0.583705 -0.19262 0.108772 -0.19262 0.108772
Ethnicity -0.02656 0.016148 -1.645 0.101725 -0.05843 0.005302 -0.05843 0.005302
Gender 0.432407 0.14791 2.923459 0.003909 0.140537 0.724278 0.140537 0.724278
Education 0.035883 0.085122 0.421551 0.673859 -0.13209 0.203856 -0.13209 0.203856
MaritalStatus -0.0812 0.118162 -0.68715 0.492875 -0.31437 0.151974 -0.31437 0.151974
NumberofChildren 0.210436 0.135349 1.554765 0.121768 -0.05665 0.47752 -0.05665 0.47752
Occupation -0.00877 0.015596 -0.56202 0.574806 -0.03954 0.022011 -0.03954 0.022011
Zodiac 0.01123 0.022469 0.4998 0.61783 -0.03311 0.055568 -0.03311 0.055568
Source: SPSS

20
 Table 13: Recognition Regression
Regression Statistics
Multiple R 0.381513
R Square 0.145553
Adjusted R
Square 0.093045
Standard Error 0.911883
Observations 191
Standard Lower Upper Lower Upper
Coefficients Error t Stat P-value 95% 95% 95.0% 95.0%
Intercept 2.99253 0.602761 4.964707 1.6E-06 1.803099 4.181961 1.803099 4.181961
BloodType -0.1586 0.075594 -2.09809 0.037301 -0.30777 -0.00943 -0.30777 -0.00943
Age 0.173564 0.078904 2.199679 0.029111 0.017862 0.329267 0.017862 0.329267
Nationality 0.081829 0.417832 0.195843 0.844955 -0.74268 0.906339 -0.74268 0.906339
Religion 0.11045 0.070504 1.566574 0.11898 -0.02868 0.249575 -0.02868 0.249575
Ethnicity -0.01951 0.014908 -1.309 0.192212 -0.04893 0.009904 -0.04893 0.009904
Gender 0.21419 0.136553 1.568547 0.11852 -0.05527 0.483651 -0.05527 0.483651
Education -0.01841 0.078587 -0.23425 0.815058 -0.17348 0.136667 -0.17348 0.136667
MaritalStatus -0.05669 0.10909 -0.5197 0.603917 -0.27196 0.158574 -0.27196 0.158574
NumberofChildren 0.080742 0.124957 0.646162 0.519002 -0.16584 0.32732 -0.16584 0.32732
Occupation -0.00639 0.014399 -0.44375 0.657759 -0.0348 0.022024 -0.0348 0.022024
Zodiac 0.034785 0.020744 1.676887 0.09531 -0.00615 0.075719 -0.00615 0.075719
Source: SPSS

21
 Table 14: Good Incentive Regression

Regression Statistics
Multiple R 0.314753
R Square 0.09907
Adjusted R
Square 0.043705
Standard Error 1.061702
Observations 191
Standard Lower Upper Lower Upper
Coefficients t Stat P-value
Error 95% 95% 95.0% 95.0%
Intercept 4.143358 0.701792 5.903967 1.74E-08 2.758507 5.528208 2.758507 5.528208
BloodType -0.19246 0.088014 -2.18674 0.030058 -0.36614 -0.01879 -0.36614 -0.01879
Age 0.051537 0.091868 0.560985 0.575509 -0.12975 0.232821 -0.12975 0.232821
Nationality -0.85076 0.48648 -1.74881 0.082039 -1.81073 0.109215 -1.81073 0.109215
Religion -0.03955 0.082087 -0.48186 0.630493 -0.20154 0.122429 -0.20154 0.122429
Ethnicity -0.00427 0.017358 -0.24572 0.806182 -0.03852 0.029987 -0.03852 0.029987
Gender 0.083302 0.158988 0.523951 0.60096 -0.23043 0.397035 -0.23043 0.397035
Education -0.05624 0.091498 -0.61463 0.539579 -0.23679 0.124317 -0.23679 0.124317
MaritalStatus -0.0276 0.127013 -0.21732 0.828208 -0.27824 0.223033 -0.27824 0.223033
NumberofChildren 0.194444 0.145487 1.336505 0.18308 -0.09265 0.481534 -0.09265 0.481534
Occupation 0.011436 0.016764 0.682192 0.495999 -0.02164 0.044518 -0.02164 0.044518
Zodiac 0.052284 0.024152 2.164788 0.031728 0.004625 0.099943 0.004625 0.099943
Source: SPSS

22
 Table 15: Insurance Pay Regression

Regression Statistics
Multiple R 0.258821
R Square 0.066988
Adjusted R
Square 0.009652
Standard Error 1.192576
Observations 191
Standard Lower Upper Lower Upper
Coefficients t Stat P-value
Error 95% 95% 95.0% 95.0%
Intercept 3.541589 0.788301 4.492689 1.26E-05 1.986031 5.097147 1.986031 5.097147
BloodType -0.02209 0.098863 -0.22345 0.823438 -0.21718 0.172996 -0.21718 0.172996
Age 0.219344 0.103193 2.125582 0.034909 0.015714 0.422975 0.015714 0.422975
Nationality -0.55274 0.546447 -1.01152 0.313132 -1.63105 0.525564 -1.63105 0.525564
Religion 0.00873 0.092206 0.094678 0.924676 -0.17322 0.190681 -0.17322 0.190681
Ethnicity 0.013283 0.019497 0.681261 0.496587 -0.02519 0.051757 -0.02519 0.051757
Gender -0.0148 0.178587 -0.0829 0.934025 -0.36721 0.337601 -0.36721 0.337601
Education -0.13121 0.102777 -1.27669 0.203366 -0.33403 0.071596 -0.33403 0.071596
MaritalStatus -0.13647 0.142669 -0.95657 0.340073 -0.418 0.145056 -0.418 0.145056
NumberofChildren 0.069849 0.163421 0.42742 0.669587 -0.25263 0.392328 -0.25263 0.392328
Occupation 0.005992 0.018831 0.318221 0.750688 -0.03117 0.043151 -0.03117 0.043151
Zodiac 0.048654 0.027129 1.793409 0.074596 -0.00488 0.102188 -0.00488 0.102188
Source: SPSS

Regression analysis is to identify which variables have impact on interests. This survey has independent variables such as;
blood type, age, nationality, religion, ethnicity, gender, education, marital status, number of children, occupation, and zodiac. This
survey also has dependent variables such as; overtime by choice, overtime for money, number of holidays, arrived early, recognition,
good incentive, and insurance pay. What dependent variable means is main factor that this paper is trying to understand. Meanwhile,
independent variable means is the factors that this paper hypothesize have an impact on dependent variable (Foley, 2018). To show
23
that there is a relationship between dependent and independent variable is the Multiple R on the tables show 1 (Multiple R ≤ 1), the
closer the number to 1, the higher the relationship between variables. However it also happens to p-value, p-value ≤ 0,05, if the
number shows more than 0,5 then there is no relationship between variables.

24
IV. CONCLUSION AND FINDINGS
Work overload can be stressful for employees, so aside from working quotas, incentives
are provided to those capable of overcoming those limitations. Thus, rewards and appreciations
are typical ways to increase an employee’s productivity within an organization as well as their
satisfaction. Hence, when an employee is rewarded and given appreciation, it can be seen as one
of the many motivations for them to be more productive in an organization. However, motivated
employees are needed, without motivated employees, all the work within an organization will
run as expected, hence, motivating the employees in order to accomplish the goals of the
organization is quite challenging. When employees are motivated, then the result and their
productivity will most likely be at their optimal. Many factors that decrease employees’
motivation include low wages / allowances, bad work environment and strained relationships.
Thus, an organization needs to understand the employees’ needs and wants. With that said, the
success of the organization depends not only on the employers themselves, but on each
individual within the organization. Incentives, bonus, good allowance, are needed to boost
productivity that is optimal in which incentives will create potentially and highly productive
employees.

The correlation tables provided above shows us that there is a good correlation between
employee satisfaction of bonus pay and the number of holidays provided by a company. We can
safely say that amongst the 191 respondents, the people that are happy with the given amount
of bonus payments also agree to the fairness of the number of holidays the company provides.
A slightly lower statistic or correlation to be mentioned is that companies who give out good
incentives are most likely to give bonus pay that is satisfactory in the eyes of employees, as well
as providing a fair number of holidays between work. A slightly higher statistic as shown in the
correlation tables shows that companies that give out satisfactory bonus pay are more likely to
provide for fair insurance coverage according to employees. This data, however, should not be
taken completely at face value as reliability levels and correlation statistics are quite lower than
what was to be expected.

Not only will an employee’s performance be affected by the rewards and recognition
that is given by employers within the organization, but it is also based on their background such
as education, age, and gender. Many from the engineering, math, and technology sectors are
those who holds at least an undergraduate degree and up. The respondents’ answers varies
dramatically, thus, the data can be seen as inconsistent. A study conducted by Kotur and
Anbazhagan (2014) concluded that education and work experience will bring out a change in
the performance of the worker. The reliability of the data can be seen as slightly biased due to
an overwhelming amount of respondents from the same occupation sector. Hence, not enough
data can accurately conclude that based on one’s occupation that is has an effect on their
performance and productivity within an organization. Those respondents from the arts, audio,
video technology and communication sectors are quite small compared to engineering, business,
and law sectors. Motivating employees can be quite challenging but it will be highly worth it,
especially for the organization as a whole because when productivity increase, profit for the
organization will inevitably increase.

25
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