ASSESSMENT OF REWARD MANAGEMENT PRACTICE THE CASE OF NYALA INSURANCE S.C.

Abstract

The aim of the study was to assess the practice and management of financial and non-financial rewards in Nyala Insurance S.C. Structured questionnaire was used to gauge the responses on a five level scale. Questionnaire was distributed to 120 sample respondents who work at nine different branches of Nyala Insurance S.C (Head office, Main, Corporate East, Corporate West, Life and Health, Kasanchise, Kera, Legehar and Biklo Bet) in Addis Ababa. Both probability and non-probability sampling was employed to select area insurances and to select sample respondents, the researcher has used simple random sampling. Data was analyzed by using statistical techniques like descriptive statistics using SPSS. The study revealed that policy for financial rewards have been developed without employees’ participation and there is no system to collect feedback. The company has no written policy for its non-financial rewards. There is no clearly defined evaluation criteria for employees’ performance management and neither supported by policy. It is also learned that there is high employees’ turnover in the lower and middle level positions. The overall result of the study confirmed that employees of the case company have shown equal interest for both financial and non-financial rewards. To implement this, the company needs to have written policy for all its reward type and needs to create awareness regularly. This research can be helpful for the insurance sector specifically to Nyala Insurance S.C. They can design total reward system which consists both financial and non-financial rewards to motivate, retain and attract competent employees