THE EFFECTS OF NON- FINANCIAL INCENTIVES ON EMPLOYEES’ PERFORMANCE IN ETHIO TELECOM

Abstract

The main objective of this study is to explore the effect of non-financial incentives on employees’ performance. It is an explanatory research and was used quantitative research approach. The target population of the study was professional employees of the company. A sample size of 371 out of 5185 employees was taken. The relevant data was collected through survey questionnaire with stratified-random sampling technique for distributing the survey questionnaire. The response rate for the study was 81% of the distributed questionnaire. The data was analyzed mainly by using descriptive statistics, correlation and regression analysis and the proposed hypothesis were tested and all of them were accepted. Major finding of the study revealed that recognition, promotion training, performance feedback and working condition factors on employees’ performance was positive and significant. According to the descriptive analysis the overall employees’ performance in the company found at medium or average level. The multiple regression models explain 61.8% of the variance in the dependent variable (employees’ performance) is accounted for by the independent variables (recognition, promotion, training, performance feedback and working condition). The regression model tells us that the five independent variables are significant predictors of the dependent variable employees’ performance with the standardized beta coefficient levels of .181, .124, .212, .155 and .320 respectively.