Abstract:
Motivating factors have been a long discourse in the theory of motivation and empirical studies
since such factors cannot be easily assessed. This study examined the effects of financial and
non-financial rewards on employee motivation of Information Network Security Agency in Addis
Ababa. To achieve the objective an explanatory research design and quantitative approach was
employed. A random sample of 259 respondents were participated in the questionnaire survey
from three job families aka strata. Multiple linear regression model using SPSS 25 was
employed to get the expected relationship between the outcome variable employee motivation
and the explanatory variables: availability of achievement, availability of recognition,
availability of responsibility, availability of influence, availability of personal growth, and
compensation package. All the six variables held statistically significant and positive linear
relationship with employee motivation. Availability of recognition, being a non-financial factor,
is the highest motivating factor while the least motivating factor is availability of influence. This
shows that Information Network Agency’s employee motivation is directly affected by both the
financial and non-financial rewards provided by the organization. Thus, Information Network
Security Agency’s top-level managers should give focus for all the six reward factors and review
earlier practices held at the company towards the motivation and start new programs so by
designing effective strategies. Particular attention should be given to recognition package for
employees who succeeded the organizations’ goal.
