The Impact Of Recognition And Rewards On Worker’s Satisfaction: A Sociological Analysis Of Rural Industries In Khyber Pakhtunkhwa-Pakistan

Abstract

This study examines the impact of recognition and rewards on worker satisfaction in rural industries of Khyber Pakhtunkhwa, Pakistan, through a sociological lens. Recognition and rewards, including formal and informal incentives, play a crucial role in enhancing job satisfaction and performance. Despite their significance, many industrial managers hesitate to implement such systems, viewing them as unnecessary expenses rather than strategic tools for productivity improvement. For the current study a cross-sectional research design was employed, with data collected from 279 respondents across three major industries—crush plants, marble, and furniture—operating in District Dir Lower. Further, a structured questionnaire based on a Likert scale was used to measure perceptions of recognition, rewards, and job satisfaction. The reliability of the scale was verified through Cronbach’s Alpha (0.639 for recognition and rewards, 0.74 for job satisfaction). Univariate analysis revealed that 40.5% of workers felt valued for their services, while 42.3% acknowledged recognition of work quality. However, more than half (52.3%) disagreed with the statement that their skills were acknowledged. Similarly, Bivariate analysis showed significant associations between recognition, rewards, and job satisfaction (p < 0.001). Key indicators such as recognition of work quality (p = 0.000, Tc = 0.153), acknowledgment of skills (p = 0.000, Tc = 0.187), and provision of incentives (p = 0.000, Tc = 0.201) demonstrated strong positive correlations. Whereas, Multivariate analysis controlling for professional qualifications further confirmed a significant relationship between recognition/rewards and worker satisfaction for both non-professionally (p = 0.000, Tc = 0.295) and professionally qualified workers (p = 0.000, Tc = 0.381). The study findings underscore the necessity of implementing structured recognition and reward systems to enhance worker motivation and productivity in rural industries. Industrial managers should integrate comprehensive employee appreciation frameworks to foster a more committed workforce and drive industrial growth in developing regions. Future research should explore longitudinal impacts and sector-specific recognition models to optimize worker satisfaction outcomes.