Extrinsic Rewards and Employee Performance Among Selected Deposit Money Banks (Dmbs) in Akure, Ondo State, Nigeria

ABSTRACT This study examined the relationship between extrinsic rewards and employee performance among selected Deposit Money Banks (DMBs) in Akure, Ondo State, Nigeria. Existing studies on reward systems often focus on developed economies or metropolitan areas, neglecting smaller urban contexts like Akure, where unique socio-economic dynamics influence employee motivations and organizational challenges. Additionally, while financial rewards such as salary and bonuses have been extensively analyzed, there is limited exploration of non-financial rewards like promotions and fringe benefits or the combined effect of both on employee performance. Addressing these gaps, this research investigated the impact of salary, bonuses, fringe benefits, and promotion on performance indicators such as efficiency, effectiveness, and job satisfaction. A survey research design was adopted for this study, and data were gathered using a structured questionnaire administered to 110 employees at different organizational levels across six selected deposit money banks (DMBs). The collected data were analyzed using descriptive statistics, Analysis of Variance (ANOVA), and multiple regression analysis to examine the proposed hypotheses. The results from the multiple regression analysis indicated a statistically significant positive relationship between extrinsic rewards and employee performance (R² = 0.794, F = 64.186, p < 0.001). Among the reward components, promotion (β=0.083, p=0.014) emerged as the most significant predictor of performance, while salary, bonuses, and fringe benefits showed a positive but less substantial impact. The findings highlight that consistent application of promotional opportunities fosters job satisfaction and career development, significantly enhancing employee motivation and performance. The study concludes that integrating structured reward systems with transparent promotion criteria and consistent financial incentives can optimize workforce productivity.