THE EFFECT OF FINANCIAL AND NON FINANCIAL REWARD PRACTICE ON EMPLOYEES PERFORMANCE IN COMMERCIAL BANK OF ETHIOPIA (NORTH ADDIS ABABA DISTRICT CITY BRANCH)

Abstract

This research attempts to determine the effect of financial and non- financial reward practice on employee performance at Commercial bank of Ethiopia north Addis Ababa district city branch. The research adopted descriptive research design method. The study also used a cross-sectional quantitative study for determining the effect of reward on employee’s performance. Clerical and managerial staffs of the bank were subjects for the study. Data were collected using questionnaires. A total of 371 questioners were distributed and all are collected. Then the researcher performed the analysis process for the collected valid data using Statistical Package for Social Science (SPSS). Descriptive statistics based on a frequency tables were used to provide information on the variables. The results were investigated in terms of descriptive statistics followed by inferential statistics on the variables. Hypotheses were developed to see the effect of all the independent variables (pay/salary, benefit, promotion, recognition and working condition) on the dependent variable (Employee Performance). The findings obtained indicated that reward practices have a positive influence on employee performance. Salary and recognition highly affect the performance of employees. Furthermore, it provided suggestions to overcome the problems to improve employees’ performance. The managements must clearly communicate its reward policy and procedure to its employees and the bank should include both financial and non-financial rewards with appropriate mix. In addition to timely offer and improvement of its reward practices must be considered.