| Abstract: | Incentive refers to any means that makes an employee desire to do better, try harder and expend more energy. It may be either monetary and/or non-monetary incentives. Different Scholars have studied the effects of incentive on employees’ performance in firms. This paper focuses particularly on practices and challenges of Non-financial incentives such as recognition, medical expense coverage, insurance coverage, promotion and training and development opportunities on ESLSE. Thus, the main objective of the study was, to assess the practices and challenges of non-financial incentives in Ethiopian Shipping and Logistic Service Enterprise (ESLSE). To investigate the issue the research utilized a descriptive approach. The target population of the research was all employees of the Enterprise located at Head Office, Addis Ababa; in which their total is 277, out of which 162 employees were selected as samples with 95% confidence interval and simple random sampling were applied to select the required sample from the population. The research used both secondary and primary data sources. As a primary source the study used Likert Scale questionnaire to measure respondents’ attitude towards non-monetary incentive practices & challenges of the Enterprise. The major findings of the study revealed that the Enterprise has its own incentive policy to motivate employees to perform better and most of the employees are satisfied by the non-incentive policy of the enterprise. As well the Enterprise provides non-financial incentive for employees like recognition, promotion, medical coverage, insurance coverage, and training opportunity. However the following major problems have been identified: there is no fairness & equal distribution of incentives, inadequate training opportunity given to the employees, and employees are dissatisfied with the type and amount of non-monetary incentives. Finally the research provides the following recommendations; the Enterprise should update and amend its incentive policy in response to employee requests for career advancement and should begin and strengthen its incentive programs such that the best performance of individual employees is recognized consistently with equivalent benefits. |
