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CAVITE STATE UNIVERSITY
Carmona Campus
Market Road, Carmona, Cavite
(046)430-3509/cvsu.carmonacampus@gmail.com
www.cvsu.edu.ph
MONETARY INCENTIVES AND EMPLOYEE ENGAGEMENT

OF SELECTED SUPERMARKET
EMPLOYEES IN STA.ROSA, LAGUNA
In Partial Fulfillment of the

Requirements in Business Research
Gadingan, Ma. Jannel

Sulit, Ma. Realyn Jill
October 2020
Carmona Campus
www.cvsu.edu.ph
CHAPTER 1: INTRODUCTION
BACKGROUND OF THE STUDY
Every employee has their own reason why they go to work. And they also
have own set of motivations and personal incentives to work hard. They are motivated
by cash and recognition in order to sustain their basic needs. Incentives is something
that makes the employee do something or work harder. One of the areas that needs
further investigation is of incentives and its relation to employee engagement. Saks
(2006) reported significant relationship between rewards and employee engagement.
Incentives are of two types i.e. monetary and non-monetary incentives. Incentives can
make employees to do good performance.
Monetary incentives are important in employee motivation and change
management program, studies shown that money is effective in attracting, motivating
and retaining employees and it creates high performance. Monetary incentive, rewards
working performance and productivity. These incentives include employee stock options,
paid time off, bonuses and cash rewards. Incentives may have a good effect but it also
has a negative effect in people's choice and behavior. When employees get used to it,
they will see incentives as an entitlement rather than a motivator, it can create frustration
if employees noticed that there is unequal contribution among group members.
Incentives may motivate the performance of the employees but they can't guarantee that
employees following their moral.

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The monetary incentives are a short-term goal process. Incentives can make
employee ignore their attitude and improve working atmosphere. Incentives being a
symbol of power and it has a big role in psychological needs of a person. A company
reward system should be monitored and measured against the set of goals, which
should be created between actions of employees and the eventual and makes incentive
performance.
The concept of Employee Engagement is about how happy employees are in
with their jobs, In which they work with their colleagues and how their performance
aligned with organizational outcomes. The three things that organization should focus on
are employee engagement, satisfaction and cash flow (Jack Welch).
Harvard Business Review (HBR 2013) conducted survey worldwide to business
leaders and found that people – oriented or “soft “skills are the main element that has a
big factor to contribute in the organization’s success. Highly engaged employees
considered as an essential element that produce desirable business outcomes.
William Kahn (1990) introduced concept of personal engagement in the workplace
in 1990s. Kahn’s suggested that engagement was impacted by an individual and
contextual sources of safety, availability and meaningfulness. (Macey and Schneider,
2008) Casual observation linking employees’ engagement and organization success
have coexist the attention of managers and scholars.

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The Gallup workplace Audit (1992-1999) recognized that employee engagement
as a predictor of a desirable organizational outcomes. More research suggested that
employees’ psychological link with their work was critically important in the service
economy of the 21st century (Bakker and Leiter, 2010).
Employee Engagement is the degree to which an employee is cognitively and
emotionally attached to his job and the organization. It will show and reflect in the
identification and commitment an employee has towards the organization. An engaged
employee is aware of the business contest as an individual and work as a team member
to improve their performance and it will benefit to the organization. Engaged employees
are the one who are concerned to the future of the organization and willing to put their
efforts to the organization. Hewitt Associates (2006) defines that the employees speak-
positively to the organization, desire – to be an effective member, strive- perform beyond
the minimal requirements for the organization. Engaged employees are more profitable,
productive, focused and fun and less likely to leave to organization (Gallup Organization,
USA 1999).
Employee Engagement is closely linked to the employee turnover, loyalty,
productivity customer satisfaction, safety and profitability criteria (Harter, Schmidt and
Hayes, 2002). The studies on employee engagement (Tower Perin, 2003) shows the
same to customer impact and financial. Engaged employees are not only committed but
also passionate about their work.
According to Wattson Wyatt (2002) consulting companies, as the organization
globalize, they are dependent on technology, there is greater need to connect and
engage with the organizational identity. Engaged employee has a line-of-sight of their
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future and on the organization missions and goals. They are enthused and in gear leads
to the business success.
STATEMENT OF THE PROBLEM

The researchers would like to know the answers on the following
questions:
1. What are the monetary incentives?
2. What is the level of employee engagement?
3. Is there any significant relationship between Monetary Incentives and Employee
Engagement?
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OBJECTIVES OF THE STUDY
The researcher’s main objective is to investigate how monetary incentives affect
their employee engagement.
1. To know what are the Monetary Incentives.
2. To know the level of employee engagement of participants.
3. To know if there is significant relationship between monetary incentives and
employee engagement.
Hypothesis of the Study:
 Ho1. There is no significant relationship of between monetary incentives and
employee engagement.
SIGNIFICANCE OF THE STUDY

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This study will provide information on how Monetary incentives motivates the
employees and how the selected employees of Supermarket in Sta. Rosa Laguna engaged to
their job.
For the students, this study can help students to use it as their basis for future research
and learn how incentives motivates employees and how they must engage in their job and
workplace.
Future researchers, this study will give them information and use it as their basis for
future research purposes.
For the employees and employers, this study will help them to enable to know the effect
of the monetary incentives to their employee engagement.
TIME AND PLACE OF THE STUDY

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The research study is located at Selected Supermarket in Sta. Rosa Laguna.
The survey will be held at November 2020.Academic year 2020 - 2021 1st semester.
SCOPE AND LIMITATIONS OF THE STUDY
The study will focus on how the Monetary incentives affects their engagement to their
job. The study will be conducted in the selected supermarket employee in Sta. Rosa Laguna
with 50 respondents. The respondents come from the two supermarkets; each supermarket has
25 respondents total of 50 respondents.
DEFINITIONS OF TERMS
 Engagement - emotional commitment the employee has to the organization and its
goals.
 Employee - person employed for wages or salary.
 Employee Engagement – occurs when employees are involved with, committed to,
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enthusiastic, and passionate about their work. Characterized by passion and
commitment
the willingness to invest oneself and expend one’s discretionary effort to help the
organization succeed (Macey & Schneider, 2008).
 Monetary Incentives - It refers to remuneration in money form employee received for

performing his/her official duties.
 Motivation - The willingness or desire of someone to do something and the idea of
creating an enabling environment for employee to increase his/her performances in work
place. The motivation may be in monetary or non-monetary form.
 Non-Monetary Incentives: These are incentives that employees gained in
work place, in form of promotion, training etc. This not in money term.
 Performance - These are the available jobs in organization at a particular point in term,
in which employees are employed for.
 Supermarket - self-service store selling food and household goods.
CONCEPTUAL FRAMEWORK
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MONETARY
INCENTIVES
 Piece Rates EMPLOYEE’S
 Pay Rates


Bonuses
Salary
ENGAGEMENT
 Sharing Profits

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CAVITE STATE UNIVERSITY

MONETARY INCENTIVES AND EMPLOYEE ENGAGEMENT

In Partial Fulfillment of the

Gadingan, Ma. Jannel

BACKGROUND OF THE STUDY

further investigation is of incentives and its relation to employee engagement. Saks

(2006) reported significant relationship between rewards and employee engagement.

make employees to do good performance.

Monetary incentives are important in employee motivation and change

management program, studies shown that money is effective in attracting, motivating

if employees noticed that there is unequal contribution among group members.

employees following their moral.

The concept of Employee Engagement is about how happy employees are in

are employee engagement, satisfaction and cash flow (Jack Welch).

Harvard Business Review (HBR 2013) conducted survey worldwide to business

big factor to contribute in the organization’s success. Highly engaged employees

considered as an essential element that produce desirable business outcomes.

William Kahn (1990) introduced concept of personal engagement in the workplace

in 1990s. Kahn’s suggested that engagement was impacted by an individual and

contextual sources of safety, availability and meaningfulness. (Macey and Schneider,

2008) Casual observation linking employees’ engagement and organization success

have coexist the attention of managers and scholars.

The Gallup workplace Audit (1992-1999) recognized that employee engagement

as a predictor of a desirable organizational outcomes. More research suggested that

economy of the 21st century (Bakker and Leiter, 2010).

Employee Engagement is the degree to which an employee is cognitively and

identification and commitment an employee has towards the organization. An engaged

positively to the organization, desire – to be an effective member, strive- perform beyond

Employee Engagement is closely linked to the employee turnover, loyalty,

also passionate about their work.

According to Wattson Wyatt (2002) consulting companies, as the organization

to the business success.

STATEMENT OF THE PROBLEM

1. What are the monetary incentives?

2. What is the level of employee engagement?

3. Is there any significant relationship between Monetary Incentives and Employee

OBJECTIVES OF THE STUDY

The researcher’s main objective is to investigate how monetary incentives affect

their employee engagement.

1. To know what are the Monetary Incentives.

2. To know the level of employee engagement of participants.

3. To know if there is significant relationship between monetary incentives and

Hypothesis of the Study:

 Ho1. There is no significant relationship of between monetary incentives and

SIGNIFICANCE OF THE STUDY

future research purposes.

of the monetary incentives to their employee engagement.

TIME AND PLACE OF THE STUDY

The research study is located at Selected Supermarket in Sta. Rosa Laguna.

SCOPE AND LIMITATIONS OF THE STUDY

25 respondents total of 50 respondents.

 Employee - person employed for wages or salary.

enthusiastic, and passionate about their work. Characterized by passion and

organization succeed (Macey & Schneider, 2008).

 Monetary Incentives - It refers to remuneration in money form employee received for

 Motivation - The willingness or desire of someone to do something and the idea of

creating an enabling environment for employee to increase his/her performances in work

place. The motivation may be in monetary or non-monetary form.

 Non-Monetary Incentives: These are incentives that employees gained in

 Supermarket - self-service store selling food and household goods.

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