The Effect Of Reward Management On The Retention Of Employees: The Case Of Oromia International Bank (OIB)

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Addis Ababa University


Reward management is related to factors that can indulge the unsatisfied needs of employees. Objectives include examining the effect of reward management on the retention of employees; in Oromia International Bank of Ethiopia. Five hypotheses were formulated to address the objectives. Data were collected from sample size of 298 respondents through reward attitude survey adopted from Armstrong (2010) and a selfadministered questionnaire and interview. The study also uses OIB’s annual report as a secondary source. The study is a descriptive which used correlation and regression analyses. The analysis is conducted using SPSS version 20 and the results found that reward attitude, organizational climate, job satisfaction, employee commitment are strongly related while employee well-being are not significantly related. Finally the study recommends that OIB should work on the perception of employees toward the company reward system through communication and in addition the bank employees’ well-being should be reinforced with a knowledge and skill that would enable them to accomplish their activities in the desired way. Finally the study suggests that further research should be conducted in different sector to avoid peculiarity of a single industry and also to consider other sectors different strategic approaches to ensure the observed association consenting for comparison and generalization to a broader population on the effect of reward management on employee retention.



Reward management, Employee retention