The Effect of Rewards on Employee Performance: A Mediating Role of Job Satisfaction in TANESCO in Dar es Salaam, TANZANIA
This study examined the effects of financial rewards on employee performance, with particular emphasis on the mediating role of job satisfaction at Tanzania Electric Supply Company Limited (TANESCO) in Dar es Salaam. Specifically, the study examined the effect of financial rewards on employee performance, and examined the mediating effect of job satisfaction on the relationship between rewards and employee performance. The study was guided by Expectancy Theory and adopted a positivist research philosophy and a quantitative research approach. A cross-sectional research design was employed, and data were collected from 153 employees using a structured questionnaire. The collected data were analysed using descriptive statistics, Pearson correlation analysis, multiple regression analysis, and mediation analysis. The findings showed that financial rewards had a positive and statistically significant effect on employee performance. The findings further revealed that both financial and non-financial rewards significantly influenced job satisfaction, while job satisfaction significantly influenced employee performance. The results therefore indicated that job satisfaction plays an important mediating role in the relationships between rewards and employee performance, with the findings suggesting partial mediation. The study concludes that effective financial and non-financial reward systems are important for enhancing employee performance, particularly when such reward systems also contribute to employees’ job satisfaction. The study recommends that TANESCO strengthen the transparency, fairness, consistency, and performance orientation of its financial and non-financial reward systems while simultaneously improving practices that enhance employee job satisfaction.
Key words: Financial Rewards; Employee Performance; Job Satisfaction; Expectancy Theory.
