The Relationship Between Incentives and Rewards and Employee Performance in Libyan Industrial Organizations: A Field Study of Al-Joud Food Industries Company in Misrata

Abstract

This study examined the relationship between incentives and rewards and employee performance in Libyan industrial organizations through a field study at Al-Joud Food Industries Company in Misrata. A descriptive-analytical approach was adopted, and a 32-item questionnaire was administered to a sample of 29 employees. The instrument covered four dimensions: financial incentives, non-financial incentives, reward systems, and employee performance. Data were analyzed using SPSS through frequencies, percentages, means, standard deviations, one-sample t-tests, Pearson correlation coefficients, and Cronbach’s alpha. The results showed relatively high perceptions of financial incentives (M=3.75), non-financial incentives (M=3.84), reward systems (M=3.77), and employee performance (M=4.19). Positive statistically significant relationships were found between financial incentives and employee performance (r=.513, p=.004), non-financial incentives and employee performance (r=.546, p=.002), and reward systems and employee performance (r=.663, p<.001). The study concludes that incentive effectiveness depends not only on the monetary value of rewards but also on fairness, transparency, clarity of criteria, and linkage to performance. An integrated combination of financial and non-financial incentives is therefore recommended for industrial organizations.