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  • June 2018
  • Article
  • Compensation & Benefits Review

The Power of Workplace Rewards: Using Self-Determination Theory to Understand Why Reward Satisfaction Matters for Workers Around the World

By: Anais Thibault Landry and A.V. Whillans
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Abstract

How can workplace rewards promote employee well-being and engagement? To answer these questions, we utilized self-determination theory to examine whether reward satisfaction predicted employee well-being, job satisfaction, intrinsic motivation, and affective commitment, as well as valuable organizational outcomes, such as workplace contribution and loyalty. Specifically, we investigated the role of three universal psychological needs—autonomy, competence, and relatedness—in explaining whether and why reward satisfaction matters for employees’ well-being. We tested our model in a large, cross-sectional study with full-time employees working for multinational corporations in six main world regions: Asia, Europe, India, Latin America, North America, and Oceania (N = 5,852). Consistent with our theorizing, we found cross-cultural evidence that reward satisfaction promoted greater employee functioning through psychological need satisfaction, contributing to better organizational outcomes. Critically, our results were consistent regardless of geographic location. As such, this study provides some of the strongest evidence to date for the power of understanding psychological mechanisms in the workplace: Regardless of the actual rewards that employees received, how workplace rewards made employees feel significantly predicted their optimal functioning.

Keywords

Workplace; Rewards; Motivation; Employees; Satisfaction; Motivation and Incentives; Welfare

Citation

Landry, Anais Thibault, and A.V. Whillans. "The Power of Workplace Rewards: Using Self-Determination Theory to Understand Why Reward Satisfaction Matters for Workers Around the World." Compensation & Benefits Review 50, no. 3 (June 2018): 123–148.
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About The Author

Ashley V. Whillans

Negotiation, Organizations & Markets
→More Publications

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More from the Authors
  • Employee Stress Is a Business Risk—Not an HR Problem By: Marion Chomse, Lydia Roos, Reeva Misra and Ashley Whillans
  • Buying (Quality) Time Predicts Relationship Satisfaction By: A.V. Whillans, Jessie Pow and Joe J. Gladstone
  • Designing the Future of Work: Atlassian's Distributed Work Practices By: Ashley Whillans and Gabriel Rondón Ichikawa
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