The Impact of Reward and Recognition Systems on Employee Motivation: A Systematic Literature Review

Abstrak

The provision of remuneration (compensation or payment) to employees is very important in increasing employee motivation. This study aims to analyze the impact of recognition and reward systems on employee motivation. The research method used is a systematic literature review (SLR), which involves a systematic review of various articles related to the research variables. The databases used are Google Scholar, Science Direct, Scopus, and Semantic Scholar. The results of the study indicate that rewards and recognition play a strategic role in increasing work motivation, both from a financial and non-financial perspective. Financial rewards, such as salaries, bonuses, and incentives, contribute to extrinsic motivation. Meanwhile, recognition, appreciation, and opportunities for self-development strengthen employees' intrinsic motivation. Remuneration not only plays a role in motivating employees but also increases job satisfaction, which contributes to better employee performance.