Reward and Employee Performance: The Mediating Roles of Intrinsic and Extrinsic Job Satisfaction Among UK Academics

Purpose: This study investigates the relationship between employee rewards and job performance of academics in UK higher education (HE). Design/methodology: A total of 363 academics were surveyed across various universities (Russell/non-Russell, research, and non-research-intensive) in the UK. PLS-SEM was used to analyse the data. Findings: Although rewards influenced both intrinsic and extrinsic job satisfaction, only intrinsic job satisfaction mediated the relationship between rewards and job performance. Extrinsic job satisfaction and job performance were not statistically significantly related. Originality: This study advances incentive theory by uncovering the boundary conditions underpinning the reward-performance relationship through the mediation of intrinsic job satisfaction. Our investigative approach provides insights into the multidimensional nature of job satisfaction. It reveals the unique motivational profile of UK academics and the sector-specific nature of their performance drivers. Practical implications: This study makes the case for universities to support academics’ autonomy, recognition, and meaningful work to foster intrinsic job satisfaction. For Russell Group universities, focusing on recognition and autonomy drives intrinsic job satisfaction, while inclusive practices are key factors for non-Russell Group universities. Aligning rewards with intrinsic job satisfaction promotes academic performance and universities’ overall impact on society.