| Abstract: | This study investigates the effect of non-financial incentives on employee performance of
ethiotelecom. More specifically, it entailed to examine how working conditions, employee training,
career development and performance feedback influence the employee performance. A sample of
342 respondents from ethiotelecom headquarter office were selected from a target population of
2353 through stratified random sampling technique. To collect the data from sample respondents,
self-administered closed-ended questionnaire with five-point Likert scale was used. A pre-test of
the reliability of the questionnaire was made and the Cronbach’s alpha coefficient was above 0.7
for the scale and each subscale. An explanatory research design and quantitative research
approach were used. The data was analyzed by using descriptive statistics (frequency, percentage,
mean and standard deviation) and inferential statistics (correlation and multiple regression
analysis). The Statistical Package for the Social Sciences (SPPS) version 26 was used to process
and generate descriptive and inferential statistics reports. The result finding revealed that there is
a strong correlation between non-financial incentive scheme (working condition, employee
training, career development and performance feedback) and employee performance of
ethiotelecom. Moreover, the regression analysis evidenced that non-financial incentive scheme is
predictors of employee performance in ethiotelecom. In addition, the regression model summary
revealed that if working condition increased by one unit there is an increase of 0.203 unit in
employee performance, if employee training increased by one unit there is an increase of 0.334
unit in employee performance, if career development increased by one unit there is an increase of
0.110 unit in employee performance and if performance feedback increased by one unit there is
an increase of 0.188 unit in employee performance. It is concluded that, non-financial incentive
determines employee performance of ethiotelecom. The researcher recommends that the company
should create more efficient training so that the employee performance will be increased more. |
