Non financial rewards for HRM in tech companies

Abstract

Purpose: This research study aims to determine the importance of non-financial rewards as an element of total compensation and its relationship to human resource management mediated by the relationship of strategic corporate governance in the technology sector.

Design/methodology/approach: A quantitative approach of extrinsic and intrinsic non-financial rewards, human resource management and strategic management of the company has been carried out. To obtain the necessary data, self-administered questionnaire were used. The results obtained from a sample of 97 human resource managers in the technology sector proves the causal relationship between each type of non-financial reward and human resource management, as well as its link to the strategic management.

Findings: Using Partial Least Squares Structural Equation Model (PLS-SEM),  significant relationships occur between human resource management and strategic management, followed by the relationship between human resource management and intrinsic rewards. A significant relationship exists between human resource management and direct and indirect intrinsic rewards through strategic management. In turn, only an indirect relationship exists between human resource management and extrinsic non-financial rewards through strategic management, but there is no direct relationship.

Originality/value: These findings are highly important for human resource management, since it could allow the development of new compensation strategies with non-financial rewards under strategic management helping technology companies to generate competitive advantage by means of the same.