A study of relationship between incentive and employees loyalty at Amanah Raya Bhd / Ummul Qais Abu Hassan

A good and effective incentive system is necessary to attract, retain and motivate the employees of an organization to work harder and stay longer with the company. Increasing number of employee’s turnover rate in Malaysia has become a major issue that needs to be addressed. Therefore, the objective of this study is to identify which type of reward (monetary or to retain working in AmanahRaya Berhad. This study was also conducted to seek the relationship between reward and employees loyalty. The independent variables were identified as salary increment, merit pay and bonus for monetary incentives and recognition, training and development as well as promotion for non-monetary incentives will be used to analyse and examined this study thoroughly and in details. The dependent variable is employee loyalty. This study is conducted at headquarter of AmanahRaya Berhad with 97 respondents took part in this research. The data obtained were analyzed using the Statistical Package for Social Science (SPSS) program. Descriptive analysis, normality test, reliability test, and Pearson’s Correlation were conducted in order to interpret the data. This research will assist the management of AmanahRaya Berhad to set up an effective incentive system to reward its employees, motivate them to work harder and stay longer with the company.