Abstract:

This study explores the relationship between rewards system and employee performance of private banks in Pakistan. In addition, it also identifies the impact of rewards system on employee performance. The challenges for banking firms in current scenario are to retaining its employees. This study will help the bank managers to an implementation of rewards system. A sample of 92 respondents in three districts (Lodhran, Vehari, Khanewal) of south Punjab, Pakistan was taken from HBL, ABL, MCB, UBL and BOP banks. A structure Likert Scale format questionnaire has been used for data collection. Questionnaires consist of two parts; the first part of questionnaires comprises demographic respondent data while second part comprises three variables questions. In order to analyze the data, regression analysis has been used. The result of this study reveals that there is the presence of a relationship between intrinsic and extrinsic rewards on employee performance and has a significant effect of intrinsic and extrinsic rewards difference on employee performance of the banking sector in Pakistan. Key Words: Intrinsic, Extrinsic, Bank, Incentives and Benefits, Employee Performance, Pakistan.

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