Proceedings of the 2nd International Conference on Business, Accounting, Banking, and Economics (ICBABE 2025)

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The Effect of Rewards and Sanctions on Employee Performance: The Mediating Role of Work Motivation in BKD Purwokerto Micro Finance

Authors
Muhail Muhail1, *, Grace Tianna Solovida2
1BPD University, Semarang, Indonesia
2BPD University, Semarang, Indonesia
*Corresponding author. Email: tn.muhail@gmail.com
Corresponding Author
Muhail Muhail
Available Online 27 October 2025.
DOI
10.2991/978-94-6463-862-2_27How to use a DOI?
Keywords
Rewards; Sanctions; Work Motivation; Employee Performance; PLS-SEM
Abstract

This study aims to examine the effect of rewards and sanctions on employee performance, with work motivation serving as a mediating variable. The research was conducted at BKD Purwokerto Microfinance in Banyumas District, Central Java, Indonesia, using a quantitative approach and the Partial Least Squares Structural Equation Modeling (PLS-SEM) method. The sample consisted of 85 employees, representing the entire population at the institution. The results reveal that rewards significantly and positively influence both work motivation and employee performance. While sanctions do not significantly affect work motivation, they do exhibit a positive effect on employee performance. Moreover, work motivation significantly influences employee performance and partially mediates the relationship between rewards and performance. The findings imply that BKD Purwokerto Microfinance should prioritize developing fair and transparent reward systems and motivation-enhancing strategies, while carefully reviewing the role of sanctions to avoid counterproductive effects on morale.

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2nd International Conference on Business, Accounting, Banking, and Economics (ICBABE 2025)
Series
Advances in Economics, Business and Management Research
Publication Date
27 October 2025
ISBN
978-94-6463-862-2
ISSN
2352-5428
DOI
10.2991/978-94-6463-862-2_27How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Muhail Muhail
AU  - Grace Tianna Solovida
PY  - 2025
DA  - 2025/10/27
TI  - The Effect of Rewards and Sanctions on Employee Performance: The Mediating Role of Work Motivation in BKD Purwokerto Micro Finance
BT  - Proceedings of the 2nd International Conference on Business, Accounting, Banking, and Economics (ICBABE 2025)
PB  - Atlantis Press
SP  - 306
EP  - 320
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-862-2_27
DO  - 10.2991/978-94-6463-862-2_27
ID  - Muhail2025
ER  -