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Pratama, Noviani Putri
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Aerospace Engineering Computer Science & IT Health Professions Neuroscience Social Sciences

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The Effect of Financial Rewards on Employee Work Motivation: An Experimental Study at SPD Speedometer Automotive Company Fajar Pertiwi, Sekar Ayu; Mardhiyyah, Siti Khofifatul; Zaman, Ikhsan Badruz; Pratama, Noviani Putri; Rahmaliya, Siti
Eduvest - Journal of Universal Studies Vol. 5 No. 10 (2025): Eduvest - Journal of Universal Studies
Publisher : Green Publisher Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.59188/eduvest.v5i10.51413

Abstract

In today's highly competitive business landscape, companies must swiftly adapt to changes and ensure that their employees remain motivated to achieve optimal productivity levels. One crucial factor in enhancing work motivation is the implementation of an effective reward system. This study aims to examine the effect of financial rewards on employee work motivation at SPD Speedometer, an automotive company. Employing a quasi-experimental design with a post-test-only control group, the research involved 60 employees divided into two groups: an experimental group receiving financial rewards and a control group receiving none. Work motivation was measured using a scale adapted from George and Jones (2012), covering three indicators: direction of behavior, level of effort, and level of persistence. The data were analyzed using the Mann-Whitney test, which revealed a significant difference in work motivation between the two groups, indicating that financial rewards substantially enhance employee motivation. These findings align with reinforcement theory and Herzberg's two-factor theory, both of which identify financial incentives as pivotal extrinsic motivators that drive positive work behavior. The practical implication suggests that a well-structured and equitable financial reward system can serve as an effective managerial strategy to boost employee motivation and productivity, particularly in the automotive industry.
Co-Authors Fajar Pertiwi, Sekar Ayu Mardhiyyah, Siti Khofifatul Rahmaliya, Siti Zaman, Ikhsan Badruz