ASSESSMENT OF REWARD PRACTICES OF NIB INTERNATIONAL BANK S.C.

Abstract

The purpose of this study was to assess the existing reward systems of Nib International Bank S.C. in Addis Ababa city, Ethiopia. The study used both primary and secondary sources of data. A quantitative research approach of the data collection was used. The study used descriptive research design and surveyed 161 employees from Nib International Bank S.C. Addis Ababa city at head quarter and branches, using self-administered questionnaire. Stratified sampling method was used and employees were selected from each stratum with a random sampling technique. The data was analyzed with descriptive statistics and presented as frequency (percentage) distribution tables. The study found that Nib International Bank S.C. has incorporated financial (salary, bonus, mortgage and automobile loan, medical coverage and etc.) and non-financial (promotion, recognitions, training and etc.) rewards to its employees. However, employees were not satisfied with the current reward packages and salary level was viewed low, didn’t differentiate high performer, and didn’t give additional rewards to high performer and the existing reward system was not capable of retaining skilled and experienced workers. The study further indicated the non-financial rewards were not satisfactory to employees