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Abstract

This study investigated the effect of return dimensions i.e. tangible and intangible returns on employees’ work effort, as well as gender differences. The study was guided by Conservation of Resources Theory and Expectancy Theory, together with pertinent literature. Four hypotheses were formulated to investigate the direct effect of tangible and intangible returns on employees’ work effort and the moderating effect of gender. The study drew its sample from 171 employees at the headquarters of Tanzania Electricity Supply Company Limited (TANESCO) in Ubungo, Dar es Salaam. Respondents were stratified into managerial and operative levels, and then systematic sampling was used within each stratum. The data were collected using a structured questionnaire and analysed using PLS-SEM. The results show that tangible as well as intangible rewards positively affect work effort of employees with intangible rewards having a more significant effect. Moreover, the results also suggest that gender plays an important moderating role in the effect of intangible returns on the work effort with a greater influence of intangible rewards for female. No significant gender difference was observed in case of tangible rewards and work effort. These results add value to the existing literature since they highlight the significance of differentiating between returns dimensions while studying the efforts of workers. In other words, this study adds practical value to the application of Conservation of Resources Theory and Expectancy Theory. It demonstrates that intangible rewards can be considered as psychological resources carrying more motivational weight than tangible rewards. From a practical perspective, the results show that factors such as bonuses and opportunities for promotion need to be taken into account when improving performance among workers. Overall, this study reveals the significance of adopting a balanced reward strategy for motivating employees, where financial rewards are complemented by non-financial incentives while paying attention to gender disparities.

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