REWARD SYSTEMS IN RURAL BANKING INDUSTRY

Abstract

Rewards and rewards systems are fundamental to developing capacities and to translating developed capacities into better performance. The focus of this study is on the rewards and reward systems that influence motivation and behaviour of people or larger system performance for development outcomes, especially in the rural banking industry, using Adansi Rural Bank as a case study.A sample size of 50 respondents comprising both administrative and non-administrative staff was chosen for the study. Data was obtained through the use of questionnaires and interview session. Data presentation and discussion were supported with line graphs and tables. The study found that both monetary and non-monetary rewards are part of the reward system at the Adansi Rural Bank. Respondents however, did not believe that at the Adansi Rural Bank rewards are adequate. Most of the non-monetary rewards were tied to performance and long service. These included, awards on individual and branch levels. The study further observed that target setting and ability to achieve rewards were basis for reward systems at the Adansi Rural Bank. Respondents felt that generally positions in the bank are under rewarded. There was a high rate of agreement by respondents to increased wages/salaries as a potential motivational factor. Again, respondents believed that additional incentives will be an important factor that could motivate employees. The study recommended that non-monetary rewards are given the needed attention so that its significance as a potential contribution to employee motivation can be realized. To improve employees’ perception of reward systems at the bank, the study recommended that rewards, both monetary and non-monetary, should be adequate and reflect the status of the employee.