Rewards ensure that employees can form strong, meaningful bonds with the organization they are working in. It plays an important role when it comes to motivation and creating engagement. Intrinsic rewards are intangible rewards that employees achieve at their workplace, also called internal rewards. These rewards are achieved when completing tasks and responsibilities efficiently and successfully. Employee engagement is a concept related to human resources and generally represents employees’ dedication to their job. Lately, researchers came up with the findings that employee engagement also represents employees’ enthusiasm for their job. This research aims to investigate how important intrinsic rewards are and how it affects employee engagement in the food industry in Bosnia and Herzegovina. Quantitative data were collected using questionnaires and survey methods. It was analyzed through Statistical Package for Social Sciences (SPSS). Research reached 210 employees using the convenience sampling method. Positive and significant relationship exists between intrinsic rewards and employee engagement, which proves that autonomy is an essential ingredient in the engagement of employees. Universal application in each business field, with the focus on Human Resource Management, applicable to creating reward packages and enhancing employee engagement. The findings of this research will be beneficial for future related research and organizational managers when formulating a quality reward package based on employees’ preferences. This research creates new directions for further research in the relationship between intrinsic rewards and employee engagement because the concept of engagement is still relatively young, and there are no previously done researches on a similar topic in Bosnia and Herzegovina.
Abdin, F., Ismail, A., & Nor, A. M. (2019). Trust in supervisor as a mediator of the relationship between perceived interactional fairness in reward systems and organizational commitment. The South East Asian Journal of Management, 13(2), 201-221. doi:https://doi.org/10.21002/seam.v13i2.11345
Ahmad-Ur-Rehman, M., Haq, I. U., Jam, F. A., Ali, A., & Hijazi, S. T. (2010). Psychological contract breach and burnout, mediating role of job stress and feeling of violation. European Journal of Social Sciences, 17(2), 232–237.
Ahmedova, S. (2015). Factors for increasing the competitiveness of Small and Medium-sized Enterprises (SMEs) in Bulgaria. Procedia-Social and Behavioral Sciences, 195, 1104–1112. doi:https://doi.org/10.1016/j.sbspro.2015.06.155
Akgunduz, Y., Adan Gök, Ö., & Alkan, C. (2020). The effects of rewards and proactive personality on turnover intentions and meaning of work in hotel businesses. Tourism and Hospitality Research, 20(2), 170–183. doi:https://doi.org/10.1177/1467358419841097
Armstrong, M. (2006). A handbook of human resource management practice. London, UK: Kogan Page Publishers.
Bagozzi, R. P., & Yi, Y. (1988). On the evaluation of structural equation models. Journal of the Academy of Marketing Science, 16(1), 74–94. doi:https://doi.org/10.1007/BF02723327
Bakker, A. B., & Albrecht, S. (2018). Work engagement: Current trends. Career Development International, 23(1), 4-11. doi:https://doi.org/10.1108/CDI-11-2017-0207
Bakker, A. B., Demerouti, E., & Sanz-Vergel, A. I. (2014). Burnout and work engagement: The JD–R approach. Annual Review of Organizational Psychology and Organizational Behavior, 1(1), 389–411.
Baumruk, R. (2006). Why managers are crucial to increasing engagement: Identifying steps managers can take to engage their workforce. Strategic HR Review, 5(2), 24-27. doi:https://doi.org/10.1108/14754390680000863
Bentler, P. M., & Bonett, D. G. (1980). Significance tests and goodness of fit in the analysis of covariance structures. Psychological Bulletin, 88(3), 588-606. doi:https://doi.org/10.1037/0033-2909.88.3.588
Bhattacharya, Y. (2015). Employee engagement as a predictor of seafarer retention: A study among Indian officers. The Asian Journal of Shipping and Logistics, 31(2), 295–318. doi:https://doi.org/10.1016/j.ajsl.2015.06.007
Bhuvanaiah, T., & Raya, R. P. (2015). Mechanism of improved performance: Intrinsic motivation and employee engagement. SCMS Journal of Indian Management, 12(4), 92-97.
Breevaart, K., Bakker, A. B., & Demerouti, E. (2014). Daily self-management and employee work engagement. Journal of Vocational Behavior, 84(1), 31–38. doi:https://doi.org/10.1016/j.jvb.2013.11.002
Broom, G. M., & Sha, B.-L. (2013). Cutlip and center’s: Effective public relations. England, UK: Pearson Education Limited.
Cascio, W., & Boudreau, J. (2010). Investing in people: Financial impact of human resource initiatives. Upper Saddle River, NJ: Ft Press.
Castro, C. B., Periñan, M. M. V., & Bueno, J. C. C. (2008). Transformational leadership and followers’ attitudes: The mediating role of psychological empowerment. The International Journal of Human Resource Management, 19(10), 1842–1863. doi:https://doi.org/10.1080/09585190802324601
Csikszentmihalyi, M. (2014). Play and intrinsic rewards. In Flow and the foundations of positive psychology. Claremont, CA: Springer.
Douglas, S., & Roberts, R. (2020). Employee age and the impact on work engagement. Strategic HR Review, 19(5), 209-213. doi:https://doi.org/10.1108/SHR-05-2020-0049
Eisenberger, R., Rhoades Shanock, L., & Wen, X. (2020). Perceived organizational support: Why caring about employees counts. Annual Review of Organizational Psychology and Organizational Behavior, 7, 101–124. doi:https://doi.org/10.1146/annurev-orgpsych-012119-044917
Fairlie, P. (2011). Meaningful work, employee engagement, and other key employee outcomes: Implications for human resource development. Advances in Developing Human Resources, 13(4), 508–525. doi:https://doi.org/10.1177/1523422311431679
Farooq, A. J., Khan, T. I., Farooq, A., Rauf, A. S., & Sharan, K. (2012). Neuroticism and job outcomes: Mediating effects of perceived organizational politics. African Journal of Business Management, 6(7), 2508–2515. doi: https://doi.org/10.5897/AJBM10.1609
Farooq, A. J., Rauf, A. S., Husnain, I., Bilal, H. Z., Yasir, A., & Mashood, M. (2011). Combined effects of perception of politics and political skill on employee job outcomes. African Journal of Business Management, 5(23), 9896–9904.
Ferreira, P., & de Oliveira, E. R. (2014). Does corporate social responsibility impact on employee engagement? Journal of Workplace Learning, 26(3/4), 232-247. doi:https://doi.org/10.1108/JWL-09-2013-0070
Gagné, M., & Bhave, D. (2011). Autonomy in the workplace: An essential ingredient to employee engagement and well-being in every culture. In V. Chirkov, R. Ryan, & K. Sheldon (Eds.), Human autonomy in cross-cultural context. Dordrecht, Netherland: Springer.
Gannon, D., Boguszak, A., et al. (2013). Douglas McGregor’s theory x and theory y. CRIS-Bulletin of the Centre for Research and Interdisciplinary Study, 2, 85–93. doi:https://doi.org/10.2478/cris-2013-0012
Giancola, F. L. (2014). Should HR professionals devote more time to intrinsic rewards? Compensation & Benefits Review, 46(1), 25–31. doi:https://doi.org/10.1177/0886368714537446
Grover, S., Singh, P., Sahoo, S., & Mehra, A. (2020). Stigma related to COVID-19 infection: Are the health care workers stigmatizing their own colleagues? Asian Journal of Psychiatry, 53, 1-3. doi:https://doi.org/10.1016/j.ajp.2020.102381
Hadžiahmetovic, N., & Dinç, M. S. (2017). The mediating role of affective commitment in the organizational ´ rewards–organizational performance relationship. International Journal of Human Resource Studies, 7(3), 105–130. doi:https://doi.org/10.5296/ijhrs.v7i3.11454
Hadziahmetovic, N., & Dinc, M. S. (2020). Linking reward types to organizational performance in Central and Eastern European universities: The mediating role of affective commitment. Journal of East European Management Studies, 25(2), 325–359. doi:https://doi.org/10.5771/0949-6181-2020-2-325
Herzberg, F. (2008). One more time: How do you motivate employees? Boston, MA: Harvard Business Review Press.
Jacobs, S., Renard, M., & Snelgar, R. J. (2014). Intrinsic rewards and work engagement in the South African retail industry. SA Journal of Industrial Psychology, 40(2), 1–13. doi:https://hdl.handle.net/10520/EJC161811
Jam, F. A., Akhtar, S., Haq, I. U., Ahmad-U-Rehman, M., & Hijazi, S. T. (2010). Impact of leader behavior on employee job stress: Evidence from Pakistan. European Journal of Economics, Finance and Administrative Sciences (21), 172–179.
Jam, F. A., Donia, M. B., Raja, U., & Ling, C. H. (2017). A time-lagged study on the moderating role of overall satisfaction in perceived politics: Job outcomes relationships. Journal of Management & Organization, 23(3), 321–336. doi:https://doi.org/10.1017/jmo.2016.13
Jam, F. A., Khan, T. I., Zaidi, B. H., & Muzaffar, S. M. (2011). Political skills moderates the relationship between perception of organizational politics and job outcomes. Journal of Educational and Social Research, 1(4), 57–57.
Jelen-Sanchez, A. (2017). Engagement in public relations discipline: Themes, theoretical perspectives and methodological approaches. Public Relations Review, 43(5), 934–944. doi:https://doi.org/10.1016/j.pubrev.2017.04.002
Kahn, W. A. (1990). Psychological conditions of personal engagement and disengagement at work. Academy of Management Journal, 33(4), 692–724. doi:https://doi.org/10.5465/256287
Khan, T. I., Jam, F. A., Akbar, A., Khan, M. B., & Hijazi, S. T. (2011). Job involvement as predictor of employee commitment: Evidence from Pakistan. International Journal of Business and Management, 6(4), 252-262.
Kochan, T. A., Riordan, C. A., Kowalski, A. M., Khan, M., & Yang, D. (2019). The changing nature of employee and labor-management relationships. Annual Review of Organizational Psychology and Organizational Behavior, 6, 195–219. doi:https://doi.org/10.1146/annurev-orgpsych-012218-015335
Koskey, A., & Sakataka, W. (2015). Effect of reward on employee engagement and commitment at Rift Valley Bottlers company. International Academic Journal of Human Resource and Business Administration, 1(5), 36–54.
Kuvaas, B. (2006). Work performance, affective commitment, and work motivation: The roles of pay administration and pay level. Journal of Organizational Behavior: The International Journal of Industrial, Occupational and Organizational Psychology and Behavior, 27(3), 365–385. doi:https://doi.org/10.1002/job.377
Lartey, F. M. (2021). Impact of career planning, employee autonomy, and manager recognition on employee engagement. Journal of Human Resource and Sustainability Studies, 9(02), 135. doi:https://doi.org/10.4236/jhrss.2021.92010
Lee, J., & Ok, C. M. (2016). Hotel employee work engagement and its consequences. Journal of Hospitality Marketing & Management, 25(2), 133–166. doi:https://doi.org/10.1080/19368623.2014.994154
Lucey, J., Bateman, N., & Hines, P. (2005). Why major lean transitions have not been sustained. Management Services, 49(2), 9–13.
Mahaney, R. C., & Lederer, A. L. (2006). The effect of intrinsic and extrinsic rewards for developers on information systems project success. Project Management Journal, 37(4), 42–54. doi:https://doi.org/10.1177/875697280603700405
Malhotra, N., Budhwar, P., & Prowse, P. (2007). Linking rewards to commitment: An empirical investigation of four UK call centres. The International Journal of Human Resource Management, 18(12), 2095–2128. doi:https://doi.org/10.1080/09585190701695267
Manzoor, F., Wei, L., & Asif, M. (2021). Intrinsic rewards and employee’s performance with the mediating mechanism of employee’s motivation. Frontiers in Psychology, 12, 1-13. doi:https://doi.org/10.3389/fpsyg.2021.563070
May, D. R., Gilson, R. L., & Harter, L. M. (2004). The psychological conditions of meaningfulness, safety and availability and the engagement of the human spirit at work. Journal of Occupational and Organizational Psychology, 77(1), 11–37. doi:https://doi.org/10.1348/096317904322915892
Mosquera, P., Soares, M. E., & Oliveira, D. (2020). Do intrinsic rewards matter for real estate agents? Journal of European Real Estate Research, 13(2), 207-222. doi:https://doi.org/10.1108/JERER-12-2019-0051
Naidu, J. (2016). Curbing staff turnover through employee engagement in the retail sector of Nagpur. International Journal of Human Resource Management and Research (IJHRMR), 6(3), 29–40.
Newman, A., & Sheikh, A. Z. (2012). Organizational rewards and employee commitment: A Chinese study. Journal of Managerial Psychology, 27(1), 71-89. doi:https://doi.org/10.1108/02683941211193866
Obicci, P. A. (2015). Influence of extrinsic and intrinsic rewards on employee engagement: Empirical study in public sector of Uganda. Management Studies and Economic Systems, 54(2518), 1–12.
Organ, D. W. (2018). Organizational citizenship behavior: Recent trends and developments. Annual Review of Organizational Psychology and Organizational Behavior, 80, 295–306. doi:https://doi.org/10.1146/annurev-orgpsych-032117-104536
Osborne, S., & Hammoud, M. S. (2017). Effective employee engagement in the workplace. International Journal of Applied Management and Technology, 16(1), 50-67. doi:https://doi.org/10.5590/IJAMT.2017.16.1.04
Ouweneel, E., Le Blanc, P. M., Schaufeli, W. B., & van Wijhe, C. I. (2012). Good morning, good day: A diary study on positive emotions, hope, and work engagement. Human Relations, 65(9), 1129–1154. doi:https://doi.org/10.1177/0018726711429382
Payne, S. C., & Webber, S. S. (2006). Effects of service provider attitudes and employment status on citizenship behaviors and customers’ attitudes and loyalty behavior. Journal of Applied Psychology, 91(2), 365-378. doi:https://doi.org/10.1037/0021-9010.91.2.365
Petrou, P., Demerouti, E., Peeters, M. C., Schaufeli, W. B., & Hetland, J. (2012). Crafting a job on a daily basis: Contextual correlates and the link to work engagement. Journal of Organizational Behavior, 33(8), 1120–1141. doi:https://doi.org/10.1002/job.1783
Rich, B. L., Lepine, J. A., & Crawford, E. R. (2010). Job engagement: Antecedents and effects on job performance. Academy of Management Journal, 53(3), 617–635. doi:https://doi.org/10.5465/amj.2010.51468988
Robertson-Smith, G., & Markwick, C. (2009). Employee engagement: A review of current thinking. Brighton, UK: Institute for Employment Studies Brighton.
Robinson, D., Perryman, S., & Hayday, S. (2004). The drivers of employment engagement (Tech. Rep.). Brighton, UK: Institute for Employment Studies.
Saeed, R., Nayyab, H., & Lodhi, R. (2013). An empirical investigation of rewards and employee performance: A case study of technical education authority of Pakistan. Middle-East Journal of Scientific Research, 18(7), 892–898.
Sahi, G. K., Roy, S. K., & Singh, T. (2022). Fostering engagement among emotionally exhausted frontline employees in financial services sector. Journal of Service Theory and Practice, 32(3), 400-431. doi:https://doi.org/10.1108/JSTP-08-2021-0175
Saks, A. M., & Gruman, J. A. (2011). Manage employee engagement to manage performance. Industrial and Organizational Psychology, 4(2), 204–207. doi:https://doi.org/10.1111/j.1754-9434.2011.01328.x
Schaufeli, W. B., Bakker, A. B., & Salanova, M. (2006). The measurement of work engagement with a short questionnaire: A cross-national study. Educational and Psychological Measurement, 66(4), 701–716. doi: https://doi.org/10.1177/0013164405282471
Selvi, A. J. A., & Aiswarya, B. (2022). Examining the relationship between emotional intelligence and work engagement of automobile sector employees in Chennai. Rajagiri Management Journal(ahead-of-print). doi: https://doi.org/10.1108/RAMJ-03-2022-0052
Sharma, A., Goel, A., & Sengupta, S. (2017). How does work engagement vary with employee demography?: Revelations from the Indian IT industry. Procedia Computer Science, 122, 146–153. doi:https://doi.org/10.1016/j.procs.2017.11.353
Singh, A., Bagadia, M., & Sandhu, K. S. (2016). Spatially coordinated replication and minimization of expression noise constrain three-dimensional organization of yeast genome. DNA Research, 23(2), 155–169. doi:https://doi.org/10.1093/dnares/dsw005
Singh, R. (2016). The impact of intrinsic and extrinsic motivators on employee engagement in information organizations. Journal of Education for Library and Information Science, 57(2), 197–206. doi:https://doi.org/10.3138/jelis.57.2.197
Smith, E., Joubert, P., & Karodia, A. M. (2015). The impact of intrinsic and extrinsic rewards on employee motivation at a medical devices company in South Africa. Kuwait Chapter of Arabian Journal of Business and Management Review, 33(2588), 1–49.
Stumpf, S. A., Tymon, W. G., Favorito, N., & Smith, R. R. (2013). Employees and change initiatives: intrinsic rewards and feeling valued. Journal of Business Strategy, 34(2), 21-29. doi:https://doi.org/10.1108/02756661311310422
Tymon Jr, W. G., Stumpf, S. A., & Doh, J. P. (2010). Exploring talent management in India: The neglected role of intrinsic rewards. Journal of World Business, 45(2), 109–121. doi:https://doi.org/10.1016/j.jwb.2009.09.016
Vance, R. J. (2006). Employee engagement and commitment. SHRM Foundation, 1, 1-53.
Van den Broeck, A., Lens, W., De Witte, H., & Van Coillie, H. (2013). Unraveling the importance of the quantity and the quality of workers’ motivation for well-being: A person-centered perspective. Journal of Vocational Behavior, 82(1), 69–78. doi:https://doi.org/10.1016/j.jvb.2012.11.005
Waheed, M. (2011). Integration of knowledge conversion process and electronic learning environment: Use of course management system. In Knowledge Globalization Conference, Boston, MA.
Waheed, M., Khan, Q., & Ain, N. (2013). Role of satisfaction, security and risk towards customer’s turnover intention from traditional to internet banking. The International Arab Journal of Information Technology, 3(2), 83–89.
Waqas, Z., & Saleem, S. (2014). The effect of monetary and non-monetary rewards on employee engagement and firm performance. European Journal of Business and Management, 6(31), 73–82.
Welbourne, T. M. (2007). Employee engagement: Beyond the fad and into the executive suite. Retrieved from https://bit.ly/3ncjPoO
Yan, X., Yang, K., Su, J., Luo, Z., & Wen, Z. (2018). Mediating role of emotional intelligence on the associations between core self-evaluations and job satisfaction, work engagement as indices of work-related well-being. Current Psychology, 37(3), 552–558. doi:https://doi.org/10.1007/s12144-016-9531-2
Ziauddin, I., Khan, M., Jam, F., & Hijazi, S. (2010). The impacts of employees’ job stress on organizational commitment. European Journal of Social Sciences, 13(4), 617–622.
Pandzic, L., & Hadziahmetovic, N. (2022). The impact of intrinsic rewards on employee engagement in the food industry in Bosnia and Herzegovina. International Journal of Business and Administrative Studies, 8(2), 48-62. doi: https://dx.doi.org/10.20469/ijbas.8.10001-2