Reward Is Not Enough

Abstract

Rewards are certainly needed to stimulate employees to be more enthusiastic in working. The study analyzed the role of job satisfaction mediation on the relationship between rewards to employees and employee productivity. The analysis used Structural Equation Modeling, with a sample of 350 employees. The analysis results prove; that there is a positive and significant influence between awards and employee productivity. There is a positive and significant influence between rewards to job satisfaction. There is a complete mediation role of Job Satisfaction to the relationship between Rewards and Employee Productivity. These results prove that Rewards are not enough to increase employee productivity. However, rewards must increase job satisfaction first before increasing employee productivity. Human Resource Managers can use these results to formulate the types of awards given to Employees to increase Employee Productivity.