ABSTRACT
Reward system is an important tool that management uses to channel employee’s motivation in desired ways such as better functionality and further improve company performance. The purpose of this study was to examine the impact of reward systems on job satisfaction in commercial banks in Lagos, Nigeria. The study was guided by four objectives. The study used descriptive research design which incorporated both quantitative and qualitative approaches. The study surveyed 65 employees from three commercial banks in Lagos, Zenith, UBA and Union bank, using self-administered questionnaire. It also interviewed selected employees. The data was analyzed with use of descriptive statistics (SPSS and excel) and data presented as frequency distribution tables and histograms. The findings of this study showed that the three commercial banks in Lagos offer both extrinsic (salary, bonus and promotion) and intrinsic (praise, recognition and genuine appreciation) rewards to their employees. However, the results found that employees were not satisfied with the current reward packages and salary level was viewed to be too low and did not reflect cost of living in Lagos. The study further indicated the intrinsic (non financial) rewards were not satisfactory to employees.
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