THE EFFECT OF PERFORMANCE-BASED WAGE SYSTEM ON EMPLOYEES' MOTIVATION: A FIELD RESEARCH IN THE TEXTILE SECTOR

Abstract

The concept of performance evaluation, which expresses the systematic evaluation of the business success and talent of the employees, becomes an important issue for today's businesses to continue their operations. In addition to measuring the performance of their employees, businesses turn to practices that establish a relationship between wage and performance in order to increase their motivation. As a matter of fact, if the performance management system is implemented effectively and the performance is reflected to the wages, it is possible to obtain good motivation from employees. When the motivation of the employees high, the performance level for the enterprise gets high too. In this study, the effect of performance-based wage system on employee motivation was discussed. The sample of the study consists of 226 blue collar employees working at SLN Textile and Fashion Industry and Trade Inc. Survey method was chosen as the data collection tool and a questionnaire with 28 questions was applied. The data obtained in the study were analyzed with SPSS 25.0. Pearson correlation analysis was conducted to examine the relationship between employee motivation and company motivation in performance-based wage system. As a result of the research analysis, it is determined that there is a positive medium level relationship between employee motivation and company motivation in performance-based wage system. According to research results, when employee motivation is increased in the performance-based wage system, it means that there will be a moderate increase in company motivation