Improving in-role and extra-role performances with rewards and recognition: Does engagement mediate the process?

Purpose This study aims to explore the possibility that rewards and recognition may be instrumental in improving both in-role and extra-role performances of retail sales associates, with an underlying mediating role of employee engagement in this relationship. Design/methodology/approach A survey was conducted across 35 retail stores in five cities located in North India on 247 sales associates. Hierarchical multiple regression analysis was conducted to test the mediation hypotheses. Analysis was done in lines with the conditions of mediation laid down by Baron and Kenny (1986). Findings Employee engagement is found to fully mediate the impact of rewards and recognition on in-role and extra-role performances. Practical implications Organizations should be committed to recognizing employees' efforts and providing them with financial and non-financial rewards based on organizational policies. Such measures would improve in-role and extra-role performances through enhancing engagement level of employees. Originality/value This study makes significant contributions to literature on employee engagement and that on retail sector, especially in Indian context, through highlighting the mediating role of engagement. Given shortage and retention of skilled manpower as major challenges for Indian retailers, engaging sales associates through rewards and recognition to improve their performance at both in-role and extra-role levels can have significant implications for retailers.