THE EFFECT OF NON-FINANCIAL REWARD ON EMPLOYEE RETENTION: THE CASE OF COMPANIES IN HAWASA INDUSTRIAL PARK.

the current competitive business atmosphere, industry is facing plenty of challenges notably obtaining the proper employees and retaining them. This research study has been conducted on companies in Hawassa Industrial Park to highlight importance of the non-financial rewards in terms of their effectiveness as well as efficiency. The purpose of this study was to seek out the effects of varied non-financial reward practice on employees’ retention. The assorted independent dimension includes Recognition, Training, Work Life Balance and Physical Work Environment. Both primary and secondary data source were used, primary data were collected form 315 respondents through questionnaires selected using stratified random sampling. A Descriptive and explanatory research design has been applied in this study. Questionnaire contents were adopted from past research and Paul E. Spector employee recognition program handbook. The adopted questionnaires were measured on a five point likert scale used to collect data from respondents; spss version 20 software has been used to analyze the data for descriptive and inferential statistics. The result of the study shows that among the non- financial reward practice training and physical work environment have a positive and significant effect on employee retention