THE IMPACT OF REWARDS ON EMPLOYEE PERFORMANCE: IN SMES IN POLOG REGION
THE IMPACT OF REWARDS ON EMPLOYEE PERFORMANCE: IN SMES IN POLOG REGION

Summary/Abstract: Nowadays companies are facing global competition and everyone is trying to create competitive advantages to successfully achieve their objectives. Human resources are key resources to the success of any business. Human resource management is focused on human relationships and on their well-being, in order for them to make their full contribution to the work. Rewards are the most subtle aspects of operating a business; it is something that recognizes a person’s contribution. At the global level there are four factors that affect worker’s rewards: institutional factors, business model factors, human resource management factors and cultural factors. Rewards are very important element in human resources management, as they influence employees’ motivation to accomplish tasks and to achieve competitive advantage. The main objective in this paper is to identify and analyze the relationship between employee rewards and employee performance in the SME s in Polog region in the Republic of North Macedonia. Enterprises in our country need to follow contemporary trends and apply all types of rewards, whether financial or non-financial, direct or indirect. The research methodology is based on statistical analysis, synthesis and comparative methods. The primary data is collected from the responses of structured questioner dedicated to SMEs in Polog region and how they apply reward management policy and practice. Our assumptions are that SMEs in Polog region don’t apply all types of rewards, especially non-financial rewards. The findings indicated that there is a significant relationship between employee reward and employee performance. Enterprises have to become aware of the importance of applying all elements of rewards to improve employee performance which will result in improved enterprise performance.

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