THE EFFECT OF REWARD ON EMPLOYEES’ PERFORMANCE: THE CASE OF ABAY BANK S.C

Abstract

The study focused on the effect of reward on employees’ performance in the context of ABAY BANK S.C. The study was guided by five research questions. In order to achieve the desired outcome descriptive as well as explanatory research designs have been applied and mixed research approach is adopted. The populations for the study were employees of ABAY BANK and the study population comprised of a total of 600 employees from various functions. Descriptive statistics including frequency tables and mean is used to present the results of the study. Correlations and regression among the variables were calculated using Statistical Package for Social Scientists. In conclusion, the study revealed that all the benefits, incentives and reward systems are important though they have a different meaning to different groups of employees working for ABAY Bank. The study therefore showed that different benefits, incentives and rewards have different effects on employee performance. The study further revealed that there is a need for ABAY Bank to come up with a comprehensive reward system that can motivate employee to increase their performance. Recommendations for improvement at the coming up with a well-structured and monitored reward system which includes both financial and non-financial reward like a profit sharing mechanism, allows, sponsor employees for farther turning and development ; that is well known and understood recognition of employee’s outstanding performance.