AN ASSESSMENT OF REWARD SYSTEM OF CLERICAL EMPLOYEES IN THE CASE OF AWASH BANK S.C

Abstract

Reward system is an important tool that management uses to channel employee’s motivation in desired ways such as better functionality and further improve company performance. The purpose of this study was to assess the reward system implemented in Awash Bank SC. The study was guided by the following specific objectives:(i) to identify the type of reward system implemented in AB, (ii) to find out whether the existing rewards system is enough to retain skilled employees, (iii) to assess implementation of procedural and distributive justice in the reward system and (iv) to find out whether the company conducts need assessment program to identify the needs of its employees in 27 branches in Addis Ababa city. The study used descriptive research design which incorporated quantitative approaches. The Researcher used simple random sampling technique in order to select respondents and branches and simple random sampling technique is sampling procedure that ensures each element in the population. Questionnaire was designed and distributed to 354 employees of the Bank, who are currently working in Addis Ababa in 27 branches and, 10 departments and 354 questionnaires were returned. The data was analyzed with the use of descriptive statistics using (SPSS and excel) and data presented in frequency distribution Tables and Histograms. The study confirmed financial rewards are important for employee motivation in the case company but the importance of non -financial rewards cannot be discriminated. It is also found out that salary is most motivating factor and while retirement benefit is the least one from financial reward. Job security and career advancement are also found to be highly motivating nonfinancial factors. This research can be helpful for the banking sector specifically to Awash Bank. They can design effective compensation package to motivate their competent employees.