Many managers
assume that giving employees more money will automatically make them work
harder. Yes the pay is important but research and practice show that rewards
are more effective when they are combined with other forms of recognition and
support. Here we discuss that the best approach to employee motivation is a mix
of financial and non-financial rewards, which meet both basic and higher-level
needs, and how Sri Lankan organizations link up their rewarding mechanisms
towards employee motivation.
Let’s Link the Rewards to Motivation Theories
Three classic
theories help explain why rewards affect motivation differently.
Maslow’s hierarchy of needs (1943) suggests that people are motivated first by basic
needs like salary and security, then by higher-level needs such as recognition,
growth, and achievement.
Herzberg’s two-factor theory (1959) complements this
by showing that salary and working conditions prevent dissatisfaction, but true
motivation comes from factors like achievement, responsibility, and
recognition.
Vroom’s Expectancy Theory (1964) highlights those employees will
work harder when they believe their effort will lead to good performance, and
that performance will be rewarded in ways they value.
These theories together
show that motivation depends not just on pay, but also on meaningful work,
recognition, and clear links between effort and rewards.
How Rewards Can Help – Finding the Perfect Balance
Money works well
for routine tasks, but for skilled employees, non-financial rewards are often
more effective for long-term motivation (Manzoor et al., 2021). Exaggerating on pay can even reduce motivation if employees start focusing only on money rather
than doing the job well for its own sake. Recognition, learning opportunities, and
a sense of purpose are important for sustaining engagement. This is why modern
reward systems combine pay with opportunities for development, skill-building,
and involvement in decision-making.
Rewarding Mechanisms used in Sri Lankan Companies
Several Sri
Lankan companies show how blended reward systems can work in practice.
MAS Holdings, a leading apparel company, invests heavily in employee training,
career growth, and workplace well-being, alongside competitive pay. These
initiatives help employees feel valued, develop new skills, and stay motivated
(MAS Holdings, 2023).
Dialog Axiata uses regular employee surveys to understand what motivates staff, and combines financial rewards with recognition programs, flexible work arrangements, and career development opportunities. By listening to employees and acting on feedback, Dialog strengthens engagement and trust (Dialog Axiata, 2022).
John Keells Holdings also emphasizes a mix of rewards, including community programs, training, and employee recognition, in addition to pay. This particular approach aligns with Maslow’s higher-level needs and Herzberg’s motivators, showing that motivation extends beyond salary alone (John Keells, 2022).
Conclusion
Employee
motivation is more than just money. A strong reward system combines fair pay
with recognition, development opportunities, and meaningful work. Linking this
to theory, pay and basic benefits satisfy Maslow’s lower needs and Herzberg’s
hygiene factors, while recognition, learning, and purpose satisfy higher-level
needs and motivators. Expectancy Theory reminds managers that employees are
motivated when they believe effort will be rewarded.
Companies such
as MAS Holdings, Dialog Axiata, and John Keells show that practical reward
strategies must balance financial and non-financial elements to truly engage
staff.
References
- Deci, E.L. & Ryan, R.M. (2000) Self-Determination Theory: The “What” and “Why” of Human Motivation. Psychological Inquiry, 11(4), pp.227–268.
- Herzberg, F. (1959) The Motivation to Work. New York: John Wiley & Sons.
- Maslow, A.H. (1943) A Theory of Human Motivation. Psychological Review, 50(4), pp.370–396.
- Vroom, V.H. (1964) Work and Motivation. New York: Wiley.
- Manzoor, F. et al. (2021) Intrinsic Rewards and Employee Performance. International Journal of Academic Research.
- MAS Holdings (2023) Impact Report 2023. Available at: https://masholdings.com/wp-content/uploads/2024/07/MAS-Holdings-Impact-Report-2023-Final.pdf
- Dialog Axiata PLC (2022) Employee Engagement and HR Practices. Available at: https://www.dialog.lk/corporate/about-us
- John Keells Holdings (2022) Sustainability and Employee Programs. Available at: https://www.keells.com/sustainability
This is an excellent and timely analysis of employee motivation. You've done a great job of connecting foundational theories with practical, real-world examples from the Sri Lankan corporate landscape.
ReplyDeleteYour discussion of Maslow, Herzberg, and Vroom provides a solid foundation. It's also worth considering how this aligns perfectly with Self-Determination Theory by Deci and Ryan. This theory posits that true, long-term motivation is fueled by three innate needs:
The key challenge that many organizations face, which this article rightly alludes to, is personalization. As Vroom's theory suggests, a reward is only motivating if it's valued by the individual. How can managers practically move beyond a one-size-fits-all "blended approach" to truly understand what motivates each team member, especially in larger teams?
Hi Rajitha, You raised a very practical and important challenge about personalization. I believe managers need to rely more on regular conversations, feedback sessions, and observation rather than assuming one reward system works for everyone. Even in larger teams, small efforts to understand individual drivers can make a big difference. Thank you for adding such valuable depth to the discussion.
DeleteThis essay explains that effective employee engagement depends on balancing monetary and non‑monetary rewards. Examples from MAS Holdings, Dialog Axiata, and John Keells show how fair pay, growth opportunities, purpose, and recognition together help sustain participation. The key point is that rewards must connect work to outcomes employees truly value, or else lasting motivation will not be achieved.
ReplyDeleteHi Madushani, I’m glad the balance between monetary and non-monetary rewards came through well, along with the local examples. And you are absolutely right - when rewards are not aligned with what employees truly value, motivation quickly fades. I really value your thoughtful takeaway from the article.
DeleteHello Dinusha,
ReplyDeleteThis is an excellent and academically grounded analysis that effectively debunks the common misconception that salary alone drives employee motivation. The article provides a strong theoretical foundation for understanding the complex relationship between rewards and motivation.
Hello Udara, Thank you very much for your feedback. I’m glad the article helped clarify that motivation goes far beyond salary alone. That mindset is still very common, so it was important for me to highlight the deeper psychological and practical aspects behind what truly motivates employees.
DeleteThis is an excellent and well-balanced explanation of what truly drives employee motivation. You clearly connect classic motivation theories—Maslow, Herzberg, and Vroom—to practical reward systems used in Sri Lankan organizations, which makes the discussion both academically sound and locally relevant. I especially like how you highlight the limitations of relying only on financial rewards and emphasize the importance of recognition, development, and purpose. Your examples from MAS, Dialog, and John Keells strengthen the argument and show real-world application. Overall, this is a thoughtful and insightful analysis that captures the psychology behind effective reward systems
ReplyDeleteHi Nilakshi,
DeleteThank you for this detailed and thoughtful response. I’m really happy that the link between theory and real-world Sri Lankan practices stood out to you. The intention was exactly that—to show how these theories actually play out in real organizations.
You’re absolutely right about the limits of focusing only on financial rewards. Recognition, growth, and purpose often create much stronger and longer-lasting motivation. I truly appreciate your kind words and insights.
You brilliantly connect Maslow, Herzberg, and Vroom's theories to a balanced rewards system. The local examples show that while fair pay is the foundation, long-term motivation is built on higher needs, recognition, growth, and a true sense of purpose. A great reminder that we must reward the whole person, not just the task.
ReplyDeleteHi Chanika, I like the way you described it as “rewarding the whole person, not just the task”—that captures the true spirit of motivation perfectly. Fair pay sets the base, but it’s the higher needs like recognition, growth, and purpose that keep people genuinely engaged in the long run. Thank you for the feedback.
Delete