Compensation Methods and Employees’ Motivation (With Reference to Employees of National Commercial Bank Riyadh)

Abstract

The main purpose of this research work is to compare the extrinsic and intrinsic rewards which are used as the factors of motivation in the banking sector of Saudi Arabia. With a case study research design, structured interviews were conducted from the eighty (80) employees of NCB seven branched in Riyadh, KSA. The interviews responses were analysed according to Likert technique. After getting scores of ten (10) reward factors, the Pearson correlation technique was calculated to check the relationship between the extrinsic and intrinsic factors and employees motivation. The results show that the employees of NCB were motivated both by the extrinsic and intrinsic rewards, in such way that extrinsic factors were more causing motivation. The analysis result shows that reward management has an intense direct positive relationship with employee motivation level also the intrinsic factors played important role in the motivation process. This research paper stress that banks in public sector shall apply the advance and updated human resource strategy regarding extrinsic and intrinsic rewards.

Key Words: Extrinsic Reward, Intrinsic Reward, Employees Satisfaction