IMPACT OF EMPLOYEE RECOGNITION ON EMPLOYEE ENGAGEMENT WITH MEDIATING EFFECT OF INTRINSIC MOTIVATION: A STUDY OF MARKETING STAFF AT XYZ FINANACE COMPANY IN SRI LANKA

Abstract

The purpose of this study was to examine the impact of employee recognition on employee engagement with mediating effect of intrinsic motivation among marketing Staff at XYZ Finance Company in Sri Lanka. This study employed a quantitative research approach with a cross-sectional survey design to examine the impact of employee recognition on employee engagement, with intrinsic motivation as a mediating factor. The target population consisted of marketing staff at XYZ Finance Company in Sri Lanka, totaling 180 employees. Using Morgan’s sample size table, a sample of 123 employees was selected through a proportionately stratified sampling, followed by simple random sampling to ensure equal representation. For data analysis, reliability analysis, correlation, and ANOVA were conducted to examine relationships between variables. Hayes' PROCESS macro was used for mediation analysis to assess the indirect effect of intrinsic motivation on the relationship between employee recognition and engagement. The study revealed that employee recognition significantly impacts employee engagement and intrinsic motivation partially mediates this relationship, with a significant indirect effect. As a recommendation, organizations should identify ways to motivate employees, which in turn boosts engagement. Practical implications emphasize the need for organizations to design tailored recognition programs that meet employees' intrinsic and extrinsic needs to enhance retention and performance. This study contributes to the limited literature on employee engagement strategies within Sri Lanka's finance industry, with recommendations for expanding research into diverse sectors and generations to validate and extend the findings.