Teklegeorges Assefa(PhD)Berihu Tewelebrhan2025-07-302025-07-302024-03https://etd.aau.edu.et/handle/123456789/5856The purpose of this study was to investigate how reward and compensation management practices affect the Africa Insurance S.C. Data were collected from four sites the Head office and three branches using an explanatory research design. Primary data was gathered and data was utilized. The purpose of this study was to investigate how reward and compensation management practice, salary, bonus, allowance, training and development, career development and working environment affect the Africa Insurance S.C. Employee performance was the dependent variable. Primary data was gathered by questionnaires and interviews, and data was used. The statistical program SPSS version 25 was then used to analyze the data. The correlation result showed that all independent factors (rewards and compensation, both financial and non-financial) and the dependent variable (employee performance) had a positive and statistically significant association. The regression analysis result shows that 75.7% of the variation in employee performance is explained by financial and non-financial rewards and compensation factors considered for the present study. The organization should focus more on financial allowances and non-financial rewards and compensation. In order to maintain reward and compensation practices that lead to good employee performance, the researcher also suggested that future researchers look into this topic area by integrating with other variables. Keywords: Financial reward and compensation, non-financial reward and compensation, employee performance.en-USThesis