Total Rewards and Employee Performance: Investigating the Mediating Role of Employee Motivation in Telecom Sector

Abstract

The present study investigates the influence of total rewards on employee performance with the mediating role of employee motivation in Pakistan telecom sector. Reward system comprises of both financial and non-financial components and plays an important role towards performance and achieving organizational goals. The study adopted descriptive survey design with a sample of 207 respondents belonging to different cadres of management of telecom companies. The results indicated significant relationship between total rewards and employee performance, financial rewards and performance, non-financial rewards and performance. Further, significant relationship also exists between total rewards, employee motivation and employee performance. The study concludes that organizations adopting total rewards system as a strategy are in better position as compared to organizations focusing only on financial rewards strategy. The study further points out that non-financial rewards are significant contributor towards enhancing employee performance as compared to financial rewards. The study also provides recommendations for future research.