|29th IBIMA Conference
3 - 4 May 2017
Tendencies on Reward Practices and Employees’ Satisfaction Level: Evidence from Portuguese Companies
Dora Martins and Susana Silva
The purpose of this research is to characterize the reward practices existing in Portuguese companies through the reward systems developed by these companies. Therefore, it was identified what include systems rewards on Portuguese companies and explored what type of rewards is more valued by employees. Survey data were collected from 146 Portuguese companies representing different sizes and business sectors operating in Portugal and 94 employees from two companies. A quantitative study was conducted to evaluate the hypothesis of the study. The findings show that 1) the rewards based on seniority systems are currently in disuse, unlike rewards systems based on job/position, performance and skills; 2) a combination of monetary and non-monetary rewards are the most valued by companies; 3) there is a predominance of variable compensation in reward systems of the companies as well as mixed incentives (individual and group); 4) there is a predominance of the short-term incentives in the reward system; 5) the annual bonus is the most common incentive; 6) the predominant benefit is the assignment of mobile phone and health insurance; 7) the satisfaction with the rewards system is lower in female employees; 8) the employee’s seniority is not related with the satisfaction of the rewards system; 9) the higher satisfaction with the rewards system is founded in the employees with higher educational qualifications; and 10) the satisfaction with the reward system seems equal in employees with more and less than 45 years of age. Theoretical and practical implications as well as and future research directions are discussed.