Impact of Work Rewards on Employee Performance: A Case Study of Pakistan's Higher Education Institutions (HEIs)
Keywords:
Work Rewards, Employee Performance, Higher Education Institutions, Pakistan, Smart-PLS, SPSS, Recognition Surveys, Structural Equation Modeling.Abstract
This study examines the impact of work rewards on employee performance within Pakistan’s Higher Education Institutions (HEIs). Employing a mixed-methods approach, we distributed 400 survey questionnaires to academic and administrative staff across public and private universities in Pakistan. The survey instrument incorporated structured scales to measure both intrinsic (e.g., recognition, career development) and extrinsic rewards (e.g., salary, benefits), alongside performance metrics such as productivity, job satisfaction, and retention. Data analysis was conducted using Smart-PLS 4 for Partial Least Squares Structural Equation Modeling (PLS-SEM) to validate construct relationships and IBM SPSS for descriptive statistics, reliability testing, and correlation analysis
Preliminary findings indicate that reward satisfaction significantly predicts employee performance, with extrinsic rewards like competitive salaries and benefits being primary drivers in Pakistan’s socio-economic context. However, intrinsic rewards, particularly recognition and professional growth opportunities, emerged as critical for long-term retention and engagement . The study also identifies structural challenges unique to HEIs, including bureaucratic reward systems and inequitable distribution, which undermine efficacy.
The research highlights the necessity of tailored reward strategies that align with cultural and institutional dynamics. Recommendations include implementing regular recognition surveys to gauge employee preferences, enhancing transparency in reward allocation, and leveraging data-driven tools like PLS-SEM to model optimal reward structures. This study contributes to both theoretical discourse and practical management in HEIs by providing a framework for reward systems that boost performance while addressing Pakistan’s specific challenges. Future research should explore longitudinal impacts and integrate broader socio-economic variables.
