An Investigation of the Relationship between Work Motivation (Intrinsic & Extrinsic) and Employee Engagement : A Study on Allied Bank of Pakistan

Introduction: Work motivation (intrinsic & extrinsic) and employee engagement is the hot issues for today’s management. Employee’s motivation has been in discussion for years, different compensation plans and strategies were adopted over years to make employees more productive. Recently, the introduction of employee engagement as a new construct to business, management, and human resource management fields make it an imperative to adopt in organizational settings. Many studies made indirect link between work motivation (intrinsic & extrinsic) and employee engagement. Moreover, motivational factors (intrinsic & extrinsic) are often considered a useful tool for employee engagement. But very few studies investigated the direct relationship between work motivation (intrinsic & extrinsic) and employee engagement. Purpose: This study explored the relationship between work motivation (Intrinsic & Extrinsic) and employee engagement. Moreover, the study also examined the impact of intrinsic and extrinsic motivation on employee engagement. Methodology: In order to fulfill the research purpose, quantitative study was adopted. Questionnaires were designed using Google survey tool. 187 questionnaires were collected from employees of Allied Bank of Pakistan. Later on, SPSS was used to perform the required test of descriptive statistics, reliability analysis, bivariate correlation, ANOVA test and multiple regression analysis. Findings: The results of SPSS revealed strong agreement of respondents to positive relationship between intrinsic motivation and employee engagement, and extrinsic motivation and employee engagement. Four intrinsic factors namely interesting work, job appreciation, satisfaction and stress, and four extrinsic factors namely job security, good wages, promotion & growth and recognition were considered important by respondents for engagement. Conclusion: From the findings it is concluded that there is positive relationship between intrinsic motivation and employee engagement, and extrinsic motivation and employee engagement. Furthermore, it is also accomplished that both intrinsic and extrinsic motivation has strong positive impact on employee engagement. From the results it is also concluded that the relationship and impact of extrinsic motivation was stronger on employee engagement as compared to intrinsic motivation. The study will enrich the current literature of work motivation and employee engagement. On practical level this study will not only help practitioners and consultants but also bank management will also be equipped with useful information regarding work motivation and employee engagement in organizational settings