The Effect Reward Management Practices On Employee Engagement A Case Study On Varnero Construction

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Addis Ababa University


Employee engagement has become a heavily discussed topic in recent years and it’s not difficult to see why. It is necessary for high business return because highly engaged employees will put their proper efforts in organizations and organizations will grow with the passage of time. One way that has been lauded for enhancing employee engagement is the use of rewards. Therefore, this research examined the effect of reward management practices on employee engagement in the case of Varnero Construction. These specific reward management practices are compensation/pay, benefit, performance feedback and recognition, work life balance and development and career opportunity. The purpose of this survey primarily essential for organization to have engaged employees for high business return and better chance of meeting the overall objectives and goals In order to fulfill the research purpose, quantitative study was adopted. 333 questionnaires were distributed and 272 completed usable questionnaires for response rate of 8.17% returned. Stratified sampling method was used and employees were selected from each stratum with a simple random sampling technique. Subsequent to this SPSS was used to perform the required test of descriptive statistics, Pearson correlation and multiple regression analysis. The result revealed strong agreement of respondents to the effect of reward management practices on employee engagement. Finally, from the findings it is concluded that reward management practices have a positive and significant effect on employee engagement. Furthermore, it is also resulted that the effect of the two components namely: Performance feedback and recognition and Development and career opportunity on employee engagement was stronger as compared to the other three components. It indicated that integrated reward management approach has more significant relationship with engagement. Therefore, it is sound to recommend the organization to implement a total reward approach instead of standalone one The study will enrich the current literature of reward management practices and employee engagement.



reward management, employee engagement