Effect of Financial Incentive Scheme Practice on Employees’ Motivation in Case of Commercial Bank of Ethiopia

Kibru Kefay, Chalchissa Amentie Kero, Lalise Kumera



The purpose of this study was to investigate the effect of financial incentive scheme practice on employees’ motivation in the case of CBE Jimma district. The study was descriptive as well as explanatory which used primary source of data. Non-probability and probability sampling method were applied (cluster & purposive). Accordingly, the major findings are, the overall perception of respondents about current financial incentive practice was shown as they are dissatisfied with salary and they are neither satisfied nor dissatisfied with fringe benefits pay. The result of regression analysis shows that; financial incentive variables (salary and fringe benefits pay) were not significant predictors of employees’ motivation. Also of that, a significant portion of employees was at good motivation level to perform their job. Also, it is advisable to the bank to reviews its salary scale & fringe benefits pay practice even so it had not significantly affect employee motivation it may be a cause for employees’ dissatisfaction.


Financial Incentives, Salary, Fringe Benefit, Motivation

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