The influence of intrinsic and extrinsic rewards on employee performance

Abstract

performance within selected Small and Medium Enterprises (SMEs) in Kelantan, Malaysia. Utilizing a quantitative research design, data were collected through structured close-ended questionnaires distributed to employees across various SME sectors. The dataset comprised 116 valid responses analyzed using SPSS version 26.0. Descriptive statistics, reliability testing, Pearson product-moment correlation analysis, and hierarchical multiple regression analysis were conducted to evaluate the relationships between the constructs. The empirical findings demonstrate that both extrinsic rewards ($\beta = 0.403, p < 0.001$) and intrinsic rewards ($\beta = 0.341, p < 0.001$) have statistically significant positive impacts on employee job performance. These results highlight the critical necessity for SME owners and managers to implement balanced compensation and recognition structures to optimize workforce productivity and organizational performance.