Affiliations: [a] Vice Rector, Valley View University, Techiman, Ghana
| [b] School of Management, Harbin Institute of Technology, Nan Gang District, Harbin, China
| [c]
Estonian Business School, Tallin, Estonia
Correspondence:
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Corresponding author: Portia Opoku Boadi, School of Management, Harbin Institute of Technology, 92 West Dazhi Street, Nan Gang District, Harbin 150001, China. Tel.: +008613199523367; E-mail: [email protected].
Abstract: Given that financial rewards constitute more than 40 percent of payroll budgets, total reward is a most important and complex notion that organizations seeking to accomplish set purpose(s) must pursue. Vying to sustain themselves and to gain competitive advantage, business enterprises and other societal organizations increasingly care for their employees’ well-being. Ergo, employers face two decision options, namely financial and non-financial rewards that make employees content. Unfortunately, most firms emphasize one option more than the other, depending on their prevailing circumstances. Using a mutual-investment framework as a guide, this article explores the influence of employees’ total rewards on corporate performance. Analyzed are the influences of both financial and non-financial employee rewards on an educational institution performance and how such rewards improve performance. When provided, total rewards can entreat employees to retain their positions, while remaining loyal to their respective organizations. Yet the implementation of total rewards in an educational institution calls for employees’ bravery, especially concerning non-financial rewards, which render employees semi-autonomous.
