Impact of Financial Rewards towards Employee Engagement: A Study of Middle Management and Executive Level Employees in Abans Finance Plc

Abstract

Retaining highly skilled employees at an organization is evidently a challenging task for management. Therefore, the objective of this research is to identify the impact of financial rewards on employee engagement in the workplace. In addition, this study intends to contribute to filling the knowledge gap by looking into the relationship between financial rewards and intellectual engagement, social engagement, and affective engagement. Although very few studies have examined the impact of financial rewards and employee engagement in the Sri Lankan context, especially in the non-banking financial industry and in executive and managerial positions. This study explored the influence of those variables among operational-level employees who work in an Abans Finance PLC in Sri Lanka. This research was conducted using a survey research strategy and quantitative research method. Operational-level employees of Abans Finance PLC were chosen as the population of the study. A simple random sampling technique was used to select the sample size based on the Morgan table. The sample size was 190. Statistical Package for Social Science (SPSS) was used for data analysis. Correlation and regression were used to analyze data. The results indicate that financial rewards have significant direct effects on intellectual engagement, social engagement, and affective engagement are not significantly impact Abans Finance PLC.