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External Rewards: A Quantitative Analysis on the Effectiveness of External Rewards on Long-term Employee Engagement

Arizona State University

OGL 540: Evidence Based Inquiry

Dr. Patience Akpan-Obong

December 2020

Abstract

Engaging your workforce is vital to a strong and successful organization. Employers are seeking ways to ensure their employees are engaged for the long term. This proposed experiment addresses the effects of external rewards on long term employee engagement. External Rewards in the form of bonuses, vacation time, and other perks offered by employers are tools that can be used to increase employee motivation and engagement. The longitudinal, survey-based experiment is designed to test B.F. Skinner’s Reinforcement Theory of Motivation indicates a positive relationship between external rewards and long-term employee engagement, controlling for tenure, job stability, and external job opportunities for employees at Ironwood Counseling, a small mental health practice in Gilbert, Arizona. The independent variable, external rewards, are defined as bonuses, extra vacation days, and other perks. The dependent variable is defined as employee engagement. The intervening variables, tenure, job stability, and external job opportunities, are defined as the length of time at the company, perception of how well the company is doing, and perception of their ability to become employed elsewhere in the current job market, respectively. We will use the Employee Engagement Scale (Shuck et. al, 2017) to measure engagement before, after 6 months of rewards, and 6 months after external rewards are then removed. A literature review has shown that there is an immediate link between motivators but a long-term study is needed. The implications of this research are to help businesses determine if extrinsic rewards are motivators in employees long term engagement within an organization. If external rewards increase employee motivation and engagement, then the cost of implementing these rewards for employers would be a worthwhile cost.

Keywords: external rewards, employee engagement, motivation, survey, long term

Introduction

With more than 155 million workers in the United States, employers are constantly seeking ways to engage and motivate their workforce. External rewards in the form of bonuses, vacation time, and other perks are staples used in the corporate world to increase employee engagement and job performance. Despite the extensive use of these external rewards, it is unclear as to whether these external motivators used by employers lead to long-term employee engagement and increased performance. Finding a relationship between external motivators and long-term employee engagement is becoming increasingly important as conditions in the workplace are changing rapidly. With the financial upheaval and an unstable job market, retaining employees and motivating them to perform at high levels is a must for businesses to be successful. Much research has been done on the short-term effects of external rewards on employee engagement, but the question is whether or not external rewards influence long-term employee engagement and performance despite their fleeting nature.

Multiple studies have shown the correlation between external motivators and employee engagement in the short term. A meta-analysis conducted on 390 companies around the world explored the engagement gap that exists between intrinsic motivators alone versus engagement with external motivators applied to show that external motivators can be applied to increase engagement beyond levels found in intrinsic motivation alone (Delaney & Royal, 2017). A full understanding of an employee's baseline engagement prior to external motivators can help to better understand the complex relationship and effectiveness between the two. The research showed that measuring an employee's intrinsic motivation prior to external motivators being applied is important to truly understand how much external motivators are impacting an employee's engagement.

Intrinsic motivation or external rewards should not be considered the only factors in determining the effectiveness of the rewards. The country of the study also plays a significant role in the outcome. Research done on pharmaceutical employees in Ukraine found that employees perceived external motivators as being effective at increasing engagement and performance (Aliekperova, 2018). An older study conducted on Russian employees discovered that while external motivators did lead to higher job satisfaction, it did not have a corresponding effect on job performance (Linz, 2003). Based on the employee population surveyed, this could be due to a lack of job stability as the Russian organization studied had perceived job instability. Research conducted at a technology company in China discovered that employees with more tenure and less perceived job options outside their current company are more susceptible to external motivators than others (Hu et al., 2019). When the employees perceived that they had fewer opportunities in the external market and had been with their organization for a longer period of time, external rewards had a higher impact on their overall engagement. These studies reveal that while a relationship between workplace engagement and job performance exists, there are several mediating factors such as job tenure, perceived job stability, and perceived external opportunities that can influence how strongly the external rewards impact the engagement levels of employees.

While different studies have explored various mediating variables in relation to employee engagement, there is a current gap in the research to account for multiple mediating variables. The research discussed above has focused on either tenure, job stability, or perceived external opportunities and their impact on how effective external motivators are. However, a study factoring in the presence of multiple mediating variables has not been conducted. This study seeks to address this gap by including those factors in its analysis to properly assess the role of external rewards on long-term engagement.

Another gap in the literature is a lack of longitudinal studies on the effect of external motivators on the American workforce. Researchers tended to focus on one point in time rather than conducting a study over a longer period for a group of employees. This provides a snapshot of employee engagement, which is helpful to assess engagement at the moment. By researching the long-term effects of external motivators through a longitudinal study, employers can reduce turnover, ensure their employees are engaged in their work and cultivate a happy workforce. A longitudinal study has not been done to allow researchers to measure the overall impact of external rewards by comparing the baseline engagement levels to the engagement levels after an external reward has been put in place. Based on this gap, further research is required to understand the connection between external motivators and long-term employee engagement for organizations.

A study of external rewards and their effect on long-term employee engagement will improve the workplace. Employers use a lot of resources in hopes of increasing engagement in their employees. Companies are looking to maximize the limited resources they have available and do not want to spend money on something that is not benefiting their organization. Through longer-term research on the effects of external rewards on employee engagement, employers will be able to see how their spent resources (in the form of external rewards) positively affect employee engagement and what external rewards they need to change to increase engagement. The results of this study will help employers determine if the external motivators that they are using are successful in reducing turnover and increasing engagement and productivity in the workplace.

The theory that we will use is the Reinforcement Theory of Motivation. It was developed by B.F. Skinner and it was used to study the influence of consequences on behavior in many settings such as education, business, and government (Skinner, 1982). This theory indicates that positive consequences- such as praise, raises, and other forms of external motivators- influence the positive behaviors (such as engagement and performance) that employers want from employees. As applied to our study, this theory holds that we would expect our independent variables- providing external motivators to employees- to influence or explain our dependent variables - a long-term level of engagement and performance of employees - because of the effectiveness of the external motivator.

In conducting research on the topic, it is imperative that researchers carefully assess employees' perception of their engagement versus true long-term engagement. A quantitative approach measuring employee engagement over the span of a year will allow us to assess initial engagement levels, engagement levels directly after the external motivators have been given, and six months after the external motivators have been taken away. This will allow us to measure both the initial impact of the external motivators and their effect on long-term engagement. Employers will be able to use the results of this research to determine if they should implement an external rewards system and whether there is a risk in doing so if they may have to at some point restrict the rewards.

Do external rewards influence long term employee engagement and performance despite their fleeting nature? How can external rewards lead to intrinsic motivation? How effective are external rewards in influencing long-term engagement? Our hypothesis is that external motivators will lead to long-term employee engagement, even after the motivator has been taken away.

Literature Review

It can be difficult to understand the relationship between extrinsic motivation, engagement, and performance. Much research has gone into the topic as a means of assessing the relationship. A meta-analysis conducted on 128 motivation studies that showed the use of extrinsic rewards for minimal performance can lead to a decrease in intrinsic motivation (Eisenberger et al., 1999). The idea behind this is that the use of external rewards can cause an employee to lose the internal motivation they previously had as it is crowded out by the external motivator. In contrast, another study conducted on restaurant employees in the Midwest indicated intrinsic motivation is not impacted by extrinsic motivators, refuting the idea of motivation crowding (Putra et al., 2016). Within the workplace, research on motivation crowding has been mixed in its results with some studies showing that internal motivation is not impacted by the introduction of external motivation and others showing the internal motivation is lowered after external motivators are used. Research conducted outside of the workplace also serves to further confuse this relationship. A study was done on children taking music lessons that demonstrated that introducing external rewards for practicing led to decreased intrinsic motivation (Comeau et al. 2019). The relationship between intrinsic motivation and extrinsic motivation is clearly a complicated one with moderating variables affecting the relationship between the two and engagement.

It is possible that the research focuses too much on the general idea of external motivators and not enough on the specific motivators applied. External motivators can cover a wide array of things: monetary bonuses, extra vacation time, company cars, paid getaways for top performers, etc. A study done on employees in Taiwan showed that external motivators can be used to inspire engagement if the correct motivators are applied, such as the ability to engage in a professional development course (Chiu, 2018). Similarly, in a 40-year meta-analysis, researchers found that external motivators are most effective when the employee perceives them as needed for other things of value, such as growth in their position (Cerasoli et al., 2014). Employees needed to find meaning within the external rewards in order for them to be effectively applied to engagement.

Some additional research has explored whether the employee's internal motivation towards a task can impact how effective an external motivator is. Research done on MBA students receiving an education subsidy discovered that an individual's motives for engaging in a behavior impacts the effectiveness of the external motivator (Caldwell et al. 1983). This suggests that it is necessary to understand the primary reasons an employee likes their job when conducting research on employee engagement. A full understanding of an employee's baseline engagement prior to external motivators can help to better understand the complex relationship and effectiveness between the two. A meta-analysis conducted on 390 companies around the world explored the engagement gap that exists between intrinsic motivators alone versus engagement with external motivators applied to show that external motivators can be applied to increase engagement beyond levels found in intrinsic motivation alone (Delaney & Royal, 2017). The research showed that measuring an employee's intrinsic motivation prior to external motivators being applied is important to truly understand which is impacting an employee's engagement.

It is important to differentiate between true engagement and feelings of engagement that have been biased by the external motivator. Research done on pharmaceutical employees in Ukraine found that employees perceived external motivators as being effective at increasing engagement and performance (Aliekperova, 2018). However, the research on motivation has shown that the relationship is not as simple as employees may perceive it to be. Mediating factors must be considered before a conclusion can be determined, In conducting research on the topic, it is imperative that researchers carefully assess employees' perception of their engagement versus true long-term engagement.

Other research has been done to understand the connection between employee engagement and job performance. A survey conducted on Russian employees discovered that while external motivators did lead to higher job satisfaction, it did not have a corresponding effect on job performance (Linz, 2003). Based on the employee population surveyed, this could be down to a lack of job stability. Employers may want an engaged workforce but not prioritize it if the research does not reveal a benefit to the organization. Research conducted at a technology company in China discovered that employees with more tenure and less perceived job options outside their current company are more susceptible to external motivators than others (Hu et al., 2019). These two studies show that a relationship between workplace engagement and job performance exists but with several mediating factors such as job tenure, stability, and perceived opportunities.

A gap in the literature was a lack of longitudinal studies on the effect of external motivators on employee engagement. Researchers tended to focus on one point in time rather than conducting a study over a longer period of time for a group of employees. Based on this gap, further research is required to understand the connection between external motivators and long-term employee engagement. The purpose of our longitudinal, survey-based experiment is to test the Reinforcement Theory of Motivation that indicates a positive relationship between external rewards and long-term employee engagement, controlling for tenure, job stability, and external job opportunities for employees at Ironwood Counseling, a small mental health practice in Gilbert, Arizona.

Methods

Design

We have decided to utilize a quantitative research design. We are going to be using a longitudinal experimental design. Our participant group was chosen through a multistage procedure in which we first sought permission from Ironwood Counseling to conduct the experiment and then selected participants based on their employment within the organization. We chose to focus on the administrative employees at Ironwood Counseling to create our sample group.

We are utilizing a pre-experimental, one-group (within-group) pretest-posttest design to study the effects of external motivators on long-term employee engagement levels. One group of participants is being studied and will serve as both the control and test group. We will conduct a measurement, implement the external rewards, measure after external rewards, and follow up 6 months after that for a total of three measurements per participant.

Group A O----XO-------O

Participants

We will be using a multi-tiered convenience-based sampling method for choosing our participants. We started by selecting the organization to participate in the experiment, Ironwood Counseling. This organization was selected for a number of reasons. The researchers had familiarity with leadership at Ironwood Counseling, making it easier to obtain permission to conduct the research. As well, Ironwood Counseling did not already have an external rewards program in place, making it possible to use it as a site for implementing the rewards in an experiment. From there, we chose to use the administrative staff for the experiment based on the number of employees as well as the ability to set criteria for performance that the external rewards can be tied to.

All participants will be assigned to the experimental group. The experiment consists of surveying initial employee engagement levels and then applying the external rewards and measuring subsequent engagement levels in the same population.

Using the Power Analysis Sample Size calculator by AI-Therapy Statistics, we determined that 27 participants are needed to obtain meaningful data. This is based on the sample group using the same subjects, with a significance level of .05 and a power level of. 8 with a significant standard deviation being .5 for effect size (AI-Therapy.com, Sample size calculator).

Data collection procedures

Data collection will be accomplished through surveys. An initial survey will be distributed assessing the employee's thoughts and feelings surrounding external motivators and their current perceived productivity and engagement. Participants will respond to questions on a Likert scale to indicate their agreement with statements regarding their company, motivation levels, productivity, and engagement. Six months after the employees received an external motivator from their employers, employees will be asked to complete the same survey assessing employees' thoughts and feelings surrounding external motivators and their perceived productivity and engagement. Participants will be given a unique identifier to ensure participation but to maintain anonymity.

For this experiment, we plan to use the Employee Engagement Scale (EES), a device designed by Shuck, Adelson, and Reio to measure employee engagement along three dimensions: cognitive engagement, emotional engagement, and behavioral engagement (Shuck et al, 2017). Developed in consultation with experts in employee engagement, the EES has been tested for construct validity against other reputable workplace engagement scales. The developers refined the tool for duplication of questions and found similar results in the use of the EES when compared with other validated scales.

We will also be asking basic demographic questions to account for tenure within the organization as a potential intervening variable. Other mediating variables (job stability and external job opportunities) will be measured through a scaled response of participants' perceived beliefs.

Procedure Steps

1. Participants will be sent an initial email to inform them of their company's participation in a research study. While their participation is not mandatory, the initial email will thank them for their consideration of participating. In that email, they will be notified that the responses recorded will be kept confidential and only reported in aggregate form to protect anonymity. Participants will be informed that the research is being done to better understand employee engagement.

2. Participants will be sent a link to the pre-treatment survey. Each survey will be tied to a unique identifier so that future scores can be matched to show changes over time. A list of all participants and their identifiers will be maintained by the researchers and used as the participant's passcode for accessing the survey. The survey itself consists of twelve questions to determine employee engagement as well as additional questions to gauge job tenure, perceived job stability, and perceived external opportunities.

3. Following the completion of the survey, the workplace will implement external rewards, such as a monetary bonus or extra time off for a six-month period. Criteria will be given to the organization for when different rewards will be given to ensure that rewards are given in a fair and consistent manner to all participants.

4. After six months, participants will be sent an email with their unique identifier and a link to a duplicate of the pre-treatment survey to assess their new engagement level. Following this survey, the experimental external rewards will cease.

5. Six months after the experimental external rewards have stopped, a final survey will be given. This will allow the researchers to assess if use of external rewards impacts baseline engagement levels by comparing initial scores with post-scores. Participants will be thanked for their participation in the surveys.

6. The results from the three surveys will then be compared to determine if implementing external rewards leads to increased employee engagement and whether that increase is sustained after the external rewards are no longer available.

Data Analysis Procedures

Data will be reviewed for outliers and statistical anomalies. Each participant will be assigned a unique identifier so that the level of engagement can be tracked on an individual level. The unique identifier will only be known to the experimenters to ensure honest answers from the participants. The goal would be to determine how many employees' engagement went up or down during the time period. Then the data would be combined to give an overall view of engagement change across the organization. Both supportive and contrary findings will be explored.

We will analyze the results for the average change in each of the different engagement questions as well as the change in engagement for each area of engagement (cognitive, emotional, and behavioral). Results from the Pilot Study indicated a discrepancy in scores between the cognitive, behavioral, and emotional subsections of engagement that will need to be analyzed for potential impact on overall long-term engagement. As well, we will look at the standard deviation in the responses to determine if the change seen between responses is statistically relevant.

A comparison of responses both between the employees' responses at various points in time as well as across the group as a whole will be conducted. The responses at various points in time can indicate the overall effect of external rewards on employee engagement. The comparison across the group as a whole will allow us to check our mediating variables of job tenure, perceived job stability, and perceived external opportunities against the changes in engagement levels that we see. This is important as previous research has shown that those mediating variables can influence the impact of external motivators and it is important that this experiment accounts for that influence.

Validation Approaches

There is potential for mortality to be an internal threat as employees may leave the company during the time period of the experiment. We will account for that by including a discussion of similarities that those who drop out of the study have in contrast with those who were still involved at the end of the study. If there are common factors in responses to questions surveyed, there may be potential for additional research into that area as a factor in employee turnover.

Another possible threat to internal validity in this study is testing. Because the survey will be administered three times, there is a risk that participants will become familiar with and remember survey questions and put the same answers each time they participate in the survey. It is our hope that by conducting the testing at six-month intervals, there is less risk of participants memorizing previous answers. In addition, the survey questions will be randomized to ensure participants are not answering questions in a predetermined pattern.

It is possible that an external validity threat related to the participant selection exists. We may not be able to extrapolate the data to a different type of employee. Since we are focusing on administrative office staff, the same results may not hold true for employees in more physically demanding jobs or who require a lot of travel for their work. We will also use the demographic data to determine if our results can be extrapolated to more diverse groups.

Methods to validate the data will include excluding surveys that mark the same response for every answer and including questions to check for responder honesty (asking the same question with responses flipped). We will also exclude outliers that may identify an individual employee both for confidentiality and data validation purposes.

Ethical Considerations

Privacy of employees responding to the survey is important. We want to ensure that participants are comfortable being honest about their employers or we will end up with skewed results. Employees will be designated a unique identifier that will ensure anonymity from employers. They will indicate their unique identifier as a response to one of the survey questions. This will ensure that employees are participating in the survey without revealing the identity of the participant.

We believe it is important that all employees participate in external rewards for the sake of fair treatment in the workplace. Imposing external rewards on one group and not another could lead to decreased engagement and performance in the control group which is why our design has eliminated a control group and applied the experimental variable equally to all participants.

A potential point of concern for ethical considerations is the voluntary participation of our research participants. As we have selected the organization to participate, Ironwood Counseling, our goal is to have all administrative staff participate in the experiment based on convenience sampling. However, while the organization has consented to participate in the experiment, the participants may feel pressure to participate as part of their employment. We will be making it clear within the consent form that if they do not wish to participate in the experiment, they have the option to decline to participate and they will not need to take the surveys. Their employer will not be informed of those participants who decline to participate to avoid any potential pressures from leadership to have the employees complete the survey. This will ensure all participants give explicit consent for their participation.

The experimental procedure of applying external rewards will be done regardless of consent to participate in the survey as the rewards will be given by the supervisor at their discretion. As well, we do not want participants to feel pressured to participate in the research in order to receive monetary bonuses or vacation time. By not tying the rewards to participating in the three surveys, participation will be voluntary and uninfluenced by the rewards.

Pilot Data

Data Collection

The pilot survey was sent out to ten participants on November 23, 2020. Responses were collected through November 25, 2020. The survey was collected online through Google Forms. Once a survey was completed by a participant, their responses were immediately available for review.

Participants for the pilot survey were recruited based on convenience sampling through Ironwood Counseling in Gilbert, Arizona. Participants were informed that the purpose of the survey was to better understand people's perceptions of their engagement at work. Once they had consented to participate in the research, they were sent a link to the survey along with directions and expected timeline. Participants had roughly 48 hours to complete the survey in order to have their responses recorded.

Data Content

Data was collected for several variables. A single question was asked for each of the mediating variables: tenure perceived job stability, and perceived external job opportunities. The dependent variable in our experiment is employee engagement. For our pilot data, we used the Employee Engagement Scale, an engagement questionnaire consisting of 12 questions centered on the cognitive, emotional, and behavioral components of engagement to provide a comprehensive engagement score (Shuck et. al, 2017). Each of the engagement components is assessed with four questions to compose an overall subset score as well as an overall engagement score. The purpose of collecting the pilot data was to see if there were any unexpected results in the survey that required further review of literature before instituting the full experiment. As well, our pilot study was conducted to check for accessibility and usability of the survey by participants.

Data Management

The data that was collected, organized, and managed in Google Forms was only accessible to those controlling the experiment. Employees and managers at Ironwood Counseling were not able to view the results of the survey. After responses were recorded, Google Forms created a bar graph with responses for each question. The years that each participant had been with the company was also recorded and a pie chart was made with the results. Refer to Appendix A for examples of the chart and graphs that were created after responses were recorded.

Data Analysis

The mean and standard deviation for each of the questions on the engagement scale was calculated, as well as on questions for two of the mediating variables, perceived job stability and perceived external opportunities (see Appendix A).

An interesting result that came out of this pilot study is that emotional engagement scored a lower average (3.7) than cognitive (4.3) or behavioral engagement (4.35). On the Employee Engagement Scale, emotional is "defined as an employee’s intensity and willingness to invest emotionality toward positive organizational outcomes" (Shuck et. al, 2017). Knowing that emotional engagement earned a lower score in the pilot will allow us to track and monitor similar discrepancies in the engagement scores between the three dimensions throughout the experiment.

Implications

The aim of our research is to test the influence of external motivators on long-term employee engagement, with the mediating variables of tenure, perceived job stability, and perceived external opportunities. The pilot data revealed the average responses on the mediating variables perceived job stability (3.5) and perceived external opportunities (3.7), a lower average than initially anticipated when designing the experiment.

With the knowledge of the current financial climate impacting many companies globally, these scores may be unnaturally influenced in ways that would have been atypical a year ago. The global COVID-19 pandemic has caused many employees to feel that their jobs are less secure and that the job market is unstable. We will need to more carefully monitor the impact of the mediating variables on long-term engagement to make sure the final results are not reflecting their influence rather than the effects of external motivators. As the end of the current pandemic and subsequent financial impact is unknown, controlling for these variables in participants is impossible. Analysis of the results will need to include a discussion of how market fluctuations may have impacted these scores.

Discussion

Based on the data that was collected in the Pilot Study, the mediating variables we have identified (tenure, perceived job stability, and perceived external opportunities) influence the motivation of employees that the survey measured. It will be important for us to monitor those variables to ensure that they are not influencing the primary data that we will collect. They could be better monitored by adding additional questions to assess the influence of the mediating variables. Adding additional questions will help us to gauge the impact that these mediating variables have on employee engagement and control for their influence.

Research on employee engagement and motivation is becoming increasingly more important as organizations are changing in response to the COVID-19 Pandemic. The traditional workplace may no longer be applicable to many industries. Based on this and other research on the effects of external rewards on employee engagement and motivation, employers will be able to understand the importance and possible necessity of implementing external rewards in their workplaces to ensure that their employees are engaged in the work that they are doing despite the changes occurring in the workplace.

Though the results of the pilot study and review of relevant literature indicate a positive relationship between external rewards and long term employee engagement, further research is needed to determine if these results can be generalized to larger corporations and companies where resources for providing external rewards are not available.

Limitations

The research design does place some limitations on the scope of the research. We chose to conduct the study on office workers at a mental health facility out of convenience and accessibility to the audience. It is possible that the results of the pilot data and the subsequent long-term study to follow would not be generalizable outside of that type of employee class. Further research would need to be done to determine if the results are generalizable to a wider audience such as larger corporations who may have a more substantial number of employees and more resources to provide external rewards.

Another limitation is the difficulty in replicating the results of the long-term study. Researchers may find it difficult to implement a year-long study within an organization or set of organizations as the amount of time can be limiting. Additionally, the cost of this research can be expensive as providing the external rewards of monetary bonuses or extra vacation time holds a financial cost that may limit the number of organizations able to participate in such research. Finding an organization that would be willing to front the cost of the external rewards in order to participate in the research to better support their employees would be an important step for future researchers.

We found it important that all participants in the research be part of the experimental group to prevent any potential lowering of engagement levels in a potential control group that would see other employees receiving rewards while they did not. The psychological impact of having a control group could significantly skew results within that group and therefore alter the results of the experiment. However, this design does make the research potentially biased and thus, limited in its scope as there may have been some other factor impacting the engagement levels of the entire group that were not accounted for.

Another limitation of the research is that all participants will receive the same external rewards. Future research that could play an important role in better understanding how external rewards influence engagement could involve giving different tiers of rewards to employees. Creating a tiered reward system is something that requires further research. In giving different tiers of rewards, researchers would be able to determine if there is a minimum amount that needs to be offered as an external reward to positively impact engagement. The possibility exists that too small an external reward could result in a negative influence on engagement levels. Another possible implication of a tiered reward research structure is that there may be a cap to the level of external reward that will affect engagement levels. If there is a 'ceiling' on how much external rewards can influence engagement levels, it would benefit companies to know that as they want to be sure they are receiving a return on their investment of the external rewards. Applying external rewards beyond the ability for them to impact engagement and subsequent performance may not be cost-effective for many organizations.

The last limitation is the need to determine the history of external rewards in the industry or organization. If external awards have been regularly given by an organization, their effectiveness may wane as they become part of the normal work environment. If external rewards are a norm, their efficacy will not be equal to those at an organization who has no history of external rewards. Additionally, in an industry such as sales, commission and bonuses are commonplace therefore possibly reducing the value of additional external rewards to the employee.

Conclusion

Employee engagement is not solely determined by one factor. It is heavily influenced by many factors with external motivators only being one. While previous research has shown that external motivators can impact employee engagement, there is still an unknown relationship on the long-term effect. Accounting for all of the possible factors that may influence engagement in research requires careful measurement of job tenure, perceived job stability, and perceived external opportunities as they all play a role in initial and long-term engagement levels. In the current economic climate, it is imperative that successful strategies for long-term engagement are studied to benefit organizations globally. High employee engagement levels can lead to increased job performance and less turnover, both factors that save companies money and lead to higher job satisfaction.

It is important for companies to individually determine if providing external rewards to increase employee engagement is something that the company has resources for and if it will be effective for each company. The cost of providing extra vacation days, monetary bonuses, and other external-reward perks may not be something that a company has a budget for. These companies need to determine if changes need to be made to allow for these external rewards or determine other strategies that can be used to motivate their employees.

Employers have an opportunity to influence an increase in the engagement and job performance of their employees. External rewards are one of the ways that they can do this. Based on this and other research on the topic, external rewards are an effective way for employers to create an environment at their companies that foster long term employee engagement and job satisfaction.

References

Aliekperova, N. (2018). Motivating Factors Effecting Work Efficiency of Employees in Ukrainian Pharmaceutical Sector. Economics and Sociology, 11(1), 61-74. doi:10.14254/2071-789X.2018/11-1/4

Bin Hu, Zhenhu Hou, Miranda Chi Kuan Mak, Sabrina Lingxiao Xu, Xuhua Yang, Tianlong Hu, Yong Qiu, & Yueran Wen. (2019). Work engagement, tenure, and external opportunities moderate perceived high-performance work systems and affective commitment. Social Behavior & Personality: An International Journal, 47(5), 1–16. https://doi-org.ezproxy1.lib.asu.edu/10.2224/sbp.7353

Caldwell, D. F., O'Reilly, C. A., & Morris, J. H. (1983). Responses to an organizational reward: A field test of the sufficiency of justification hypothesis. Journal of Personality and Social Psychology, 44(3), 506-514. doi:http://dx.doi.org.ezproxy1.lib.asu.edu/10.1037/0022-3514.44.3.506

Cerasoli, C. P., Nicklin, J. M., & Ford, M. T. (2014). Intrinsic motivation and extrinsic incentives jointly predict performance: A 40-year meta-analysis. Psychological Bulletin, 140(4), 980-1008. doi:http://dx.doi.org.ezproxy1.lib.asu.edu/10.1037/a0035661

Chiu, H. (2018). Employees’ Intrinsic and Extrinsic Motivations in Innovation Implementation: The Moderation Role of Managers’ Persuasive and Assertive Strategies. Journal of Change Management. Vol. 18, Issue 3.

Comeau, G., Huta, V., Yuanyuan, l., & Swirp, M. (2019). The Motivation for Learning Music (MLM) questionnaire: Assessing children's and adolescents' autonomous motivation for learning a musical instrument. Motivation & Emotion. Vol. 43(5). pp. 705-718.

Delaney, M., & Royal, M. (2017). Breaking Engagement Apart: The Role of Intrinsic and Extrinsic Motivation in Engagement Strategies. Industrial and Organizational Psychology, 10(1), 127-140. doi:10.1017/iop.2017.2

Eisenberger, R., Pierce, W. D., & Cameron, J. (1999). Effects of reward on intrinsic motivation—Negative, neutral, and positive: Comment on deci, koestner, and ryan (1999). Psychological Bulletin, 125(6), 677-691. doi:http://dx.doi.org.ezproxy1.lib.asu.edu/10.1037/0033-2909.125.6.677

Linz, S. (2003). Motivation and Reward: A Case Study of Russian Workers. Problems of Post-Communism. Vol. 50(2), pp. 44-55. ISSN 1075–8216.

Putra, E. D., Cho, S., & Liu, J. (2016). Extrinsic and intrinsic motivation on work engagement in the hospitality industry: Test of motivation crowding theory. Tourism and Hospitality Research, 17(2), 228-241. doi:10.1177/1467358415613393

Sample size calculator. (n.d.). Retrieved November 21, 2020, from https://www.ai-therapy.com/psychology-statistics/sample-size-calculator

Shuck, B., Adelson, J., Rieo, T.J. (2016). The Employee Engagement Scale: Initial Evidence for Construct Validity and Implications for Theory and Practice. Human Resource Management. Vol 56(6) pp. 953-977. DOI:10.1002/hrm.21811

Skinner B. F. (1982). Contrived reinforcement. The Behavior analyst, 5(1), 3–8. https://doi.org/10.1007/BF03393135

Appendix A

Appendix B

Table 1

Category

Question

MEAN

Standard Deviation

Cognitive Engagement

I am really focused when I am working.

4.3

0.289009732

Cognitive Engagement

I concentrate on my job when I am at work.

4.3

0.345202316

Cognitive Engagement

I give my job responsibility a lot of attention.

4.4

0.394825915

Cognitive Engagement

At work, I am focused on my job.

4.2

0.283429131

Emotional Engagement

Working at my company has a great deal of personal meaning to me.

3.6

0.166882584

Emotional Engagement

I feel a strong sense of belonging to my job.

3.7

0.361789414

Emotional Engagement

I believe in the mission and purpose of my company

3.5

0.156347149

Emotional Engagement

I care about the future of the company

4

0.241099151

Behavioral Engagement

I really push myself to work beyond what is expected of me.

4

0.230799484

Behavioral Engagement

I am willing to put in extra effort without being asked.

4.6

0.572317934

Behavioral Engagement

I often go above and beyond what is expected of me to help my team be successful.

4.6

0.484438457

Behavioral Engagement

I work harder than expected to help my company be successful.

4.2

0.302402836

Meditating Variable: Perceived Job Stability

I believe that my job at my company is secure.

3.5

0.150590572

Mediating Variable: Perceived External Opportunities

I believe that I could find another job at a different company easily.

3.7

0.400012983

The scale's internal consistency is .83 as measured using Cronbach’s Alpha Scale.

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