Rewards system and employee motivation in the South African Military Health Service

Abstract

Orientation: The study on reward systems (RS) and their effects and prediction of employee motivation (EM) in the South African Military Health Service (SAMHS) becomes crucial for research in performance management.
Research purpose: The purpose of the study was to investigate the predictive relationship between the rewards system and EM in the SAMHS, to assess the effectiveness of the rewards system.
Motivation for the study: Reward systems are implemented to motivate employees. When implemented appropriately, RS can enhance and positively predict EM.
Research design, approach, and method: Participants were sampled (N = 300) using simple random and convenience sampling techniques. Cronbach’s alpha was computed to assess internal consistency of the scale items, Pearson’s correlations to evaluate variable relationships between RS and EM, and hierarchical regression analysis was used to determine the effects of intrinsic and extrinsic rewards (ER) on EM.
Main findings: The results show that RS is related to EM. Furthermore, regression analysis results show that while both intrinsic rewards (IR) and ER are important, only IR significantly predict EM.
Practical/managerial implication: RS positively relates to EM, and that should be maintained. IR serves as a buffer when ER fails to fully motivate employees. SAMHS and performance management or rewards practitioners should use these results to promote RS for EM.
Contribution/value-add: The study shows that intrinsic and ERs increase employee motivation, and IR predicts EM at SAMHS.