The Effect of Non-financial Rewards on Employee Retention: The Case of Berhanena Selam Printing Enterprise

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Addis Ababa University


This research looked at the extent to which identified non-financial rewards which are employee recognition, job autonomy, learning and development and supportive work environment are influenced the retention and reduction of employee turnover in Berhanena Selam Printing Enterprise(BSPE). The general objective of the study was to examine the relationship between nonfinancial rewards and employee retention and make recommendations to management of the enterprise on how to effectively retain employees and reduce turnover. The study adopted the cross-sectional survey research design, to investigate the extent to which selected non-financial variables influence employees’ retention to either remain or quit an organization. Quantitative research design used and this design was chosen because its findings are generalizable. The target population of the research comprised 114 employees of the surveyed organization by taking all professional employees out of it 89 respondents returned the filled questionnaires. Adopted questionnaire measured on a Likert scale used to collect data from respondents, data obtained was analyzed using statistical package for social sciences. From Descriptive, frequency, mean and standard deviation and from inferential, correlation and multiple regression analysis were used while analyzing data. The result of correlation analysis evidenced non-financial rewards treated in this study has a strong relationship with employee retention. Beta coefficient result showed non-financial rewards studied has a positive influence in bringing variation in employee retention. From the four nonfinancial rewards, the following variables are found to have significantly influenced employee retention in BSPE; job autonomy, learning and development, supportive work environment, whereas employee recognition not found influential factor to employee retention.



Employee, retention, recognition