The strategic importance of motivational rewards for lower-level employees in the manufacturing and retailing industries

One of the biggest challenges that managers face in executing business strategies to achieve competitive advantage, is the employment of motivational techniques that build wholehearted commitment to operating excellence. Much confusion however still exists on the question of which rewards really motivate employees. This study investigates which rewards motivate lower-level employees (N = 367) in both manufacturing and clothing retail firms. The results show that the most important individual motivational reward for blue-collar employees is paid holidays and for frontline employees, retirement plans. The most important motivational reward category for both blue-collar and frontline employees is fringe benefits (paid holidays, sick leave and housing loans).