Abstract:
Herzberg’s two-factor theory suggests that extrinsic rewards (salary, allowances, etc.) help
only to reduce job dissatisfaction, while intrinsic rewards (non-financial rewards) help to
increase job satisfaction. Studies on non-financial rewards among non-academic staff
members of state universities in Sri Lanka are scarce. Therefore, researchers aim to describe the impact of non-financial rewards (IV) on job satisfaction (DV). This study used a deductive research approach and survey strategy employing a mono-method and cross-sectional design. Data were collected using a self-administered questionnaire covering demographics, non-financial rewards, and job satisfaction. The study examined recognition, personal development, work-life balance, and workplace environment. ANOVA was used to identify variations in job satisfaction based on age group and experience. A simple regression analysis was performed to identify the impact of nonfinancial rewards on job satisfaction. Based on the Morgan table, 415 (377 ± 10%) questionnaires were circulated using a simple random sampling method. In total, 141 entries were included in the final analysis. The majority of employees (53.9%) were male, married (83.7%), and served as Management Assistants, with most holding G.C.E. (A/L) qualifications (50.1%), and commutes over 30 km daily. The ANOVA test revealed that employees aged 18-23 years and with less than 10 years of experience reported the highest job satisfaction. University recognition, career development support, fair work schedules, and a healthy workplace environment significantly impacted job
satisfaction (P < 0.05). The study found that non-financial benefits significantly influenced
job satisfaction (R² = 0.406, F = 95.196, β = 0.638, t = 9.757, p < 0.05, 95% CI) among non-academic staff at Sri Lankan state universities. Recognition (β = 0.327, t = 3.522, p < 0.05, 95% CI) and the workplace environment (β = 0.334, t = 4.056, p < 0.05, 95% CI) were identified as the most affected dimensions of non-financial rewards, supporting Herzberg's two-factor theory that addressing and enhancing such rewards can increase job satisfaction. The research team suggests that state universities introduce intrinsic rewards, such as recognition, a healthy work environment, personal development, and work-life balance, to boost employee satisfaction and performance.
