ASSESSMENT OF NON-FINANCIAL REWARD SYSTEM PRACTICE: THE CASE OF AWASH BANK S.C

Abstract

The study was designed to assess the Non-financial reward practice of Awash Bank .Typically there are various types of non-financial rewards but for this study training, Performance management, career development, supervision, recognition and quality of work life were selected. To achieve the stated objective study data were collected from employees working at the head quarter through questionnaire and for issues that cannot be addressed using questionnaire a structured interview conducted with the Manager Training and Development Division and HR Senior staffs. The validity of the questionnaire was checked by communicating with the advisor and to measure the reliability of the questionnaire Cronbach Alpha were used. The total number of the target population was 1018 out of this 125 were chosen as a sample respondents .The developed questionnaire was distributed to the sample respondents using stratified sampling, from the distributed questionnaire 95% (119) were collected. Descriptive statistics and frequencies were utilized to analyze the data and Interpretation is made by mean and percentage. The findings of the study demonstrated that even if the Bank is giving job related training it doesn’t have the power to retain the employees. Concerning the performance appraisal, it is not linked with promotion and also the banks promotional policy lacks transparency, fairness and equitability due to this the employees are not motivated to perform their tasks. Besides this the result shows that the recognition practice of Awash Bank is not effective on satisfying and retaining its employees. Therefore, the researcher generally recommends Awash Bank to give high emphasis and work on the non-financial rewards practices to enhance satisfaction, motivation and retention of employees.