The study was conducted with the aim of assessing strategies and practice of rewardrnmanagement in the Ethiopian financial sector. Primary data was collected using a 4itemrnlikert scaled questionnaire from purposively selected 20 head office of banks and insurancernindustries 265 expected sample size having a response rate of (97.8%). Data was tested inrncronbachâ€™s alpha analysis and it fulfills reliability. The questionnaires were analyzed usingrndescriptive statistics and T-test with the support of statistical software program namelyrnStatistical Package for Social Science (SPSS version 24) for analyses and summarizationrnpurposes. The findings based on three different constructs (strategy, alignment, system)rnrevealed that existence of some gaps in reward strategy implementation, its alignment withrnorganizational business strategy and gap of controlling and monitoring reward system. Itrnalso investigated that Ownership and type as demographic factor that has significantrninfluence on reward management system. Sector should have bridge implementation gap ofrnreward strategy by building the capacity of the employees in the area, fulfilling requiredrnresource for implementation before designing, enhancing employee recognition attitude asrna principle of the sector. To come up with effective Reward management system, financialrnsectors should have to control each progress and gather feedback; plan accordingly of arnsystem and to customized their reward management system with employeesâ€™ different needs.