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Purpose

The purpose of this study is to investigate the impact of reward systems on team performance and analyze how satisfaction with rewards can result in better working performance and cohesiveness in the job environment.

Design/methodology/approach

Data was collected from 32 single members of different teams working in 10 selected banks from the Middle East and North Africa region.

Findings

The analysis from empirical findings reveals that there is a positive link between reward systems and team performance. More particularly, profit sharing has positive effects on team performance and collective bargaining reward systems affect significantly team cohesiveness. These links create an opportunity for employers to use reward systems as a motivating factor to direct team behavior toward more employee retention.

Originality/value

This study contributes to the teamwork performance research stream by empirically studying how rewards improve team performance and cohesiveness in Eastern contexts. Studies in such contexts are relatively rare.

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