The analysis of the modern financial and non-financial aspects of employees ’rewards

Organisations view employee rewards and innovative performance as the
cornerstone for sustained competitive advantage. This study primarily
analyses modern financial and non-financial employee rewards across
municipal organisations. The fundamental problem discovered in this study
is that in the public sector, employee rewards and innovation performance
have yet to progress in parallel with time. The public sector still uses
traditional rewards, thus demotivating employees' morale and killing
innovative performance.
This study used mixed methods techniques, surveys, research interview
questions, and document reviews. Survey data was analysed using both
descriptive and inferential statistics. The sample included three hundred
employees, and a simple random sampling technique was used to select
each population element. For interviews, data analysis employed thematic
analysis and content analysis methods. The sample included twelve
employees, and a haphazard convenience sampling technique was used to
select each population element. The researcher used reputable sources for
the document review to collect thoughts and facts.
The municipalities do not have a modern total reward system, and their
rewards are outdated and inconclusive. The municipalities have a reward
policy; however, employees are not informed about it. The municipalities
ignore employees' needs, and the culture is neither individualistic nor
collectivistic since the municipalities practice an autocratic management
style. This study confirmed that engagement is a crucial psychological factor
in reward systems and innovative behaviours by showing that non-financial
(intrinsic) rewards greatly increase employee engagement, and this
consequently mediates the interaction between rewards and innovation.
Cultures that value individualism and collectivism have an impact on
participation and may have an impact on innovation. Indirectly, employee
engagement is highly predicted by how innovation is seen and measured,
highlighting the importance of creating a climate that supports innovation in
maintaining staff motivation and output.