THE RELATIONSHIP BETWEEN FINANCIAL AND NON-FINANCIAL REWARDS ON EMPLOYEE’S JOB SATISFACTION AT MANUFACTURING INDUSTRIES IN MALAYSIA

Abstract

Reward is the basic needs in upgrading employee’s pleasure which influence their job execution. In order to retain the employees, overall work performance leaded by employee satisfaction will give benefits for companies in this competitive labour market. This paper aims to explore the influence of financial rewards and non-financial rewards in relation to employee job satisfaction. Questionnaires were distributed to employees in manufacturing industries in the southern region of Malaysia. In total, 300 self-administered were distributed. However, there are 169 samples were accepted and analysed through statistical software. In order to identify the relationship between independent variables and dependent variable, Pearson correlation analysis was conducted. The result shows both financial and non-financial rewards are significant with employees’ job satisfaction. Most of the employees in manufacturing industries in the southern region of Malaysia are satisfied with the rewards offered by their respective companies. This outcome might give light to other manufacturing companies and promote the importance of having an appropriate reward policy.