THE EFFECT OF REWARD MANAGEMENT PRACTICE ON EMPLOYEE ENGAGEMENT:THE CASE OF COMMERCIAL BANK OF ETHIOPIA (CBE)

Abstract

Organizations are seeking to develop, motivate and increase the performance of their employees in a variety of human resources applications. Therefore, the reward management system has been considered to be the most considerable practices of the human resource management system. Hence, the main objective of conducting this research study is to determine the relationship between reward and employee engagement. The result of the study may significantly contribute to the knowledge with regard to reward and employee engagement management since it is a contemporary issue of the organization. Quantitative research method through descriptive statistics, correlation and regression analysis were used and in this study 306 data collected from employees of Commercial Bank of Ethiopia found at head office using questionnaires. The data collected was analyzed using SPSS version 20 software. As a result, the result of this study support that reward management practices have significant positive relationship with employee engagement. The findings of this study also propose that integrated reward management approach (total reward) has more positive significant approach on engagement. The study also investigate which components of reward management has unique large contribution on employee engagement and as the result shows pay and compensation has largest unique contribution on employee engagement relative to others components. Therefore, its sound to recommend the organization implement a total reward approach instead of standalone one. It is also advisable for the organization to focus more of on the pay and compensation reward