ABSTRACT

The topic of the study was the effects of rewards on employee performance in Esco Uganda Limited Bundibugyo; the problem was to have effective reward system in Esco Uganda Limited Bundibugyo. The purpose of the study was to establish the relationship between employee rewards and their performance in Esco Uganda Limited Bundibugyo. The objectives of the study were; to find out what forms of rewards are used in Esco Uganda Limited Bundibugyo; to establish the effects of rewards on employee performance in Esco Uganda Limited Bundibugyo; to establish the possible solutions to the problem of poor reward systems in Esco Uganda Limited Bundibugyo. The research used both quantitative and qualitative research designs. The findings of the study indicated the following; There is use of both financial and non financial rewards; but mostly there is use of financial rewards than non financial rewards. Reward had significant effects on employee performance and therefore, this hindered the attainment of the goals ofEsco Uganda Limited Bundibugyo. The study further discovered that there should be a sound reward system for Esco Uganda Limited Company Bundibugyo to have committed workforce for better performance. In conclusion, there is use of both financial and non financial rewards in Esco Uganda Limited Bundibugyo; rewards have both positive and negative effects on employee performance in Esco Uganda Limited Bundibugyo; the solution to problems of poor rewarding systems in Esco Uganda Limited Bundibugyo is through having equitable pay system. The recommendations of the study were; Esco Uganda Limited Company Bundibugyo should introduce an equitable system of paying its workers in order to have committed staff for better performance. It should also look at other factors that affect employee performance other than rewards such as employee level of education, seniority, level of specialization, age, family background among others.