Effect of Non- Financial Compensation on the Employees’ Job Performance: A Case of Jimma Geneti Woreda Health Centers in Horro Guduru , Ethiopia

Abstract

The main purpose of this study was to assess   the effect of non-financial compensation on the of employees’ job performance. The cross-sectional, descriptive and inferential design with field study were used in the study. Accordingly, 136 samples of respondents’ from 206 populations were taken. The study used mainly primary data and secondary data. Survey data collected from respondents were analyzed by descriptive statistics such as frequency, percentage, and inferential statistics such correlation and multiple linear regressions analysis. The findings of the study indicated that there was a significant relationship between non-financial compensation and employee job performance in particular. But also, non-financial compensation; recognition positively and significantly affects employees’ job performance with is highly correlated with (r=0.605, p=0.000), and followed by work condition (r=0.590, p=0.000) and empowerment (r=0.554, p=0.000). Finally, it is recommended that health centers needs to continually review and adjust the compensation system from time to time focusing more on non- financial compensation in order to influence employees to perform better. This may help to motivate the employees to perform well and will decrease the rate of turnover and absenteeism with in health centers.