Impact of Intrinsic and Extrinsic Rewards on Job Satisfaction of Employee: An Empirical Analysis

Abstract

Within the changing business realm businesses are facing increasing pressure to ensure that their operations are meeting the industry standards and complying with customers’ needs. Dynamic organizations focus on investing on their human capital to enhance overall organizational output. The current research investigates how intrinsic and extrinsic rewards impact the job satisfaction of people working at different levels in manufacturing and services firms. Using the non-probability convenience sampling technique, the authors collected data from employees in Rawalpindi and Islamabad. The statistical analyses indicate that intrinsic and extrinsic rewards are vital to workers' job satisfaction. The current research provides valuable insights to senior management of manufacturing and services firms. It explains how they can enhance the job satisfaction of their employees, leading to enhanced productivity by offering them intrinsic and extrinsic rewards.