Data Collection

Tesco is one of the multinational retailers in the UK which is operating with more than 4,70,000

employees all over the world (Anjali, 2019). The organization facing a problem regarding their

employee performance level. Even after implementing strong rewarding programs for expected

performance, the improvement has not been satisfactory.

The following research tries to find out the impact of reward system on employee performance

and identify why it is failing.

The research has been conducted using a positivism research philosophy, deductive approach and

quantitative strategy. A questionnaire has been used in order to collect primary data from 100

employees of the organization. Data has been collected in a quantitative way so that statistical

analysis and graphical representation of the data is possible (Cameron, 2013). In order to collect

quantitative data, the 5-point Likert scale has been used against each of the statements that

evaluate respondents’ responses.

Data obtained from the 100 employees of Tesco will be discussed here:

Table 1: Gender Analysis

Frequency Percent Cumulative

Percent
Female 56 56 56
Male 44 44 100

From the above table, it shows that the percentage of the male and female of the respondent. As

from the 100 respondent, 56% were female and the rest of the 44% were male.
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Figure 1: Gender analysis

Table 2: Tesco encourages expected behavior by providing rewards to the employees

Frequency Percent valid percent cumulative

percent
Strongly Agree 53 53 53 53
Agree 35 35 35 88
Neutral 3 3 3 91
Disagree 9 9 9 100

Strongly 0 0 0

Disagree
Total 100 100 100

The response is indicating that 53% of the employees strongly agreed, 35% agreed, 3% was

neutral and rest of 9% disagreed with the statement implying Tesco encourages expected

behavior by providing rewards to the employees.

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Figure 2: Tesco encourages expected behavior by providing rewards to the employees

Table 3: I find the rewards given to me by Tesco is satisfactory

Frequency Percent valid percent cumulative

percent
Strongly Agree 56 56 56 56
Agree 25 25 25 81
Neutral 5 5 5 86
Disagree 8 8 8 94
Strongly 6 6 6 100

Disagree
Total 100 100 100
The statement tries to find out if the reward system of Tesco is satisfactory or not and 56%

strongly agreed and 25% agreed that they find the rewards are satisfactory while 5% remained

neutral, 8% disagreed and the rest of 6% were strongly disagreed.

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Figure 3: I find the rewards given to me by Tesco is satisfactory

Table 4: Rewards do not help me to improve my skills and abilities

Frequency Percent valid percent cumulative

percent
Strongly Agree 52 52 52 52
Agree 34 34 34 84
Neutral 5 5 5 89
Disagree 4 4 4 93
Strongly 5 5 5 98

Disagree
Total 100 100 100
Skills and abilities are directly linked to performance and this statement tries to find out if

rewards are enough to increase the skills and abilities of the organization and it can be seen 52%

strongly agreed, 34% agreed to imply that rewards do not improve skills 5 % neutral, 4%

disagree and the rest of 5% were strongly disagreed.

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Figure 4: Rewards do not help me to improve my skills and abilities

Table 5: Whenever I receive a reward I want to improve my level of performance

Frequency Percent valid cumulative

percent percent
Strongly Agree 58 58 58 58
Agree 33 33 33 91
Neutral 1 1 1 92
Disagree 7 7 7 99
Strongly Disagree 1 1 1 100
Total 100 100 100
This statement tries to find out if rewards are motivating for the employees of Tesco to want to

improve their performance or not. According to the responses are given 58% strongly agreed,

33% agreed with the assertion while 1% remained neutral, 7% disagreed and the rest of 1%

strongly disagreed.
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Figure 5: Whenever I receive a reward I want to improve my level of performance

Table 6: Every time I receive a reward; I expect it to be better than I rewards I have

previously received.

Frequency Percent valid percent cumulative

percent
Strongly Agree 53 53 53 53
Agree 35 35 35 88
Neutral 3 3 3 91
Disagree 9 9 9 100
Strongly 0 0 0

Disagree
Total 100 100 100

In order to find out the expectations that Tesco employees have on the rewards, they receive the

above statement has been included in the questionnaire. The responses show that 53% of the
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employees strongly agreed and 35% agreed to imply that they always expect better rewards next

time while 3% were neutral and rest of 9% disagreed but none strongly disagreed.

Figure 6: Every time I receive a reward; I expect it to be better than I rewards I have

previously received.

After conducting the survey of Tesco employees regarding their performance and the rewards

system of Tesco it can clearly be seen that these factors are related. Majority of the employees

shared their views that whenever they are working they need some kind of motivation and these

rewards drives them to perform better for the organization and well for themselves. However,

even though rewards play a key role in motivating the employees, rewards cannot improve the

skills and ability of the employees which are the principal components of employee performance

(Frey, 2013). The research also finds out that the rewards given by Tesco are satisfactory to them

and they feel motivated to improve their performance whenever they receive a reward.

Additionally, the research pointed out that the expectation of the quality of the reward also

increases with each reward.

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From the research that has been conducted above the following recommendations can be made:

 The quality of rewards provided by the company to their employees is satisfactory to the

employees and Tesco must maintain that. The research indicates that the expectations of

reward changes as each time they are given, so the rewarding strategy must be formulated

very carefully on the basis of the available resources to keep the rewards up to their

expectation.
 The research shows that rewards are very effective in motivating the workforce, however,

not enough to increase the level of work skill. Therefore, it can only be used as a

motivating tool to increase performance but on as an active skilling enhancing tool. Tesco

should note that and design their strategies accordingly.

 The importance of reward clearly indicates that a lack of rewards would really damage

for the overall employee motivation and performance. This is also true if the rewards lose

their value. So, the value of the rewards given must be set very carefully and in

accordance with the resources available.

References

Anjali, G, (2019), "Understanding the Relationship between Employee Motivation and Customer

Retention", St. Joseph Engineering College. 102-112

Frey, R., Bayón, T. & Totzek, D. (2013), "How Customer Satisfaction Affects Employee

Satisfaction and Retention in a Professional Services Context", Journal of Service Research, vol.

16, no. 4, pp. 503-517.

Cameron, S. and Price, D. (2013). Business research methods. London: Chartered Institute of

Personnel and Development.

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