The Effect Of Financial Reward Practice On Employee Retention: The Case Of Poverty Eradication And Community Empowerment Share Company (Peace Mfi S.Co)
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Date
2017-05-22
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Addis Ababa University
Abstract
The main objective of this study is to determine the effect of financial rewards on employee retention at PEACE MFI S. C. The rate of employee turnover is increasing in company and as a result it has become an issue and the management has not solved this problem even if salary and fringe benefits adjustment is made every two years. The study adopted descriptive research method through the stratified random sampling design that engaged from both managerial and non-managerial staffs of 100 respondents. Data was collected using questionnaires and interviews to triangulate data source. Data was analysed with the help of the Statistical Package for Social Sciences (SPSS) version 20 computer programme.
After the analysis using Pearson’s Correlation test, the result showedthat positive correlation between the level of financial rewards which have an effect on employee retention (p=0.003). That why there is a high rate of employee turnover in the company. Therefore, the researcher highly recommends that further research can be done to find out effect of other non-financial rewards on employee retention.
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Keywords
Financial reward, reward management