A Correlational Study of Manager-Employee Relationship, Employee Rewards, and Employee Engagement

Organizational leaders are challenged with loss of productivity due to lack of employee engagement, making employee engagement a top priority for organizational executives worldwide. Grounded in Emerson’s social exchange theory, the purpose of this quantitative correlational study was to examine the relationship between manager-employee relationship and employee rewards and employee engagement. Employees (N = 31) of a U.S. organization completed the Intrinsic Work Rewards Survey, Extrinsic Rewards on Creativity Measure, and the Work and Well-being Survey. The results of the multiple linear regression indicated a statistically significant relationship, F(2, 28) = 32.875, p < .001, R2 = .701. Employee rewards was the only statistically significant predictor of employee engagement (t = 6.074, p < .001). A recommendation is for organizational leaders to establish reward programs that address employee needs for compensation, achievement, and development. This implications for positive social change include the potential for employees to benefit from financial stability and well-being. The organization may achieve higher performance and profitability, enabling the organization to invest in job creation and community economic development.