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1. Introduction
There is no doubt that one of the most important elements that make a company sustainable is human resources. Without manpower, a company would not be able to compete in the existing market or even in the new market. Unfortunately, humans have several weaknesses as compared to machinery. Employees make errors; employees have feelings, at times they feel uncomfortable or discouraged to perform their tasks. This is usually reflected in their performance especially when they are serving the customer (Naude and Rudansky-Kloppers, 2016). To increase their performance, the company has to support them in any way possible (Peccei et al., 2013). This is where the total reward system (TRS) plays an important part. When a company is successful in encouraging its employees, it will first affect employee productivity (EP), which affects company performance (Peluso et al., 2017).
By adopting a TRS, companies could affect the attractiveness and performance of employees in doing tasks, as well as the satisfaction of employees (Rafiq et al., 2012; Dzuranin and Stuart, 2012). Additionally, they also stated that satisfaction leads to higher productivity and commitment of employees of the related companies. Therefore, the company needs to provide both elements which are monetary (extrinsic) and non-monetary (intrinsic). To avoid dissatisfaction, the company may need to cater to hygiene factors, but they also need to stimulate motivation to enhance employee performance in the company which is all a balancing act to encourage employees to perform at their best in the company (Hafiza, 2011). Thus, it will create a distinctive competitive advantage from other competitors and ensure to maintain the market position in tight, competitive markets caused by globalization. Hence, having a professional and highly productive worker is essential for a company in the service industry.
As described earlier, the perfect proportion of TRS affects EP and job satisfaction (JS). In this case, the company needs to raise an issue to manage and maintain their reward system to become more attractive to employees, thus positively affecting their productivity (Gbande, 2016). When employees’ needs are fulfilled, employees start to work efficiently and steadily to reach the company’s goals. Previous studies, such as the one by Peluso et al. (2017), looked at this, but they did not research further...