Rewards and Employee Engagement In HR

Employee engagement has become a major factor to the success of organizations in the current competitive business environment (Bakker and Albrecht, 2011). Whereas extrinsic rewards, including salary increments and bonuses, are seen as the most crucial motivational mechanisms (Shields et al., 2016), recognition, fairness, and transparency in reward systems are equally crucial (Beatty, 2021). A total reward system that involves monetary and non-monetary rewards is necessary to support both long-term engagement and trust (Hoole and Hotz, 2016).   Fairness in Reward Systems   Fairness in reward systems is a perception of employees that rewards and benefits are given fairly and that the procedures used in making reward decisions are fair. Organizational Justice theory (Colquitt, 2001) recognizes fairness in the following three dimensions:   Distributive Justice: How equitable the result (e.g. salary).   Procedural Justice: The equity of procedures involved in setting re...