REWARDS SYSTEM AND BANKERS' PERFORMANCE IN BENIN CITY

Abstract

The business environment of today is characterized by intense competition. One of the
battlegrounds for competition is in the area of attracting and retention of competent
staff. Today, the benefit of human resource is considered as one of the most important
advantages of any organization; and in order to achieve results, motivation of the
human resource is very essential. This study examines the impact of rewards system on
worker's performance in the banking sector in Benin City. Specifically, this study sought to
establish the relationship between intrinsic and extrinsic rewards system on bankers'
performance, and also to identify the various rewards available in the banking sector in
Benin City. Primary data were gathered through the use of a structured questionnaire.
Two hundred and sixty-one (261) questionnaires were administered to branches of five
(5) selected deposit money banks in three populated local government areas in Benin
City, Edo State, out of which two hundred and fifty-five (255) were retrieved and used
for the analysis. The Ordinary Least Square (OLS) regression was used to test the
hypotheses. The regression result shows that both intrinsic and extrinsic rewards
significantly impact bankers' performance. On the basis of our findings, we
recommended, among others, that banks should ensure that they provide the needed
motivation, reward, or remuneration that will spur employees to act towards improving
their task performance.
Keywords: Banking sector; Benin City; extrinsic reward; intrinsic reward; workers'
performance.