Abstract:
Human resource is one of the most significant tools to achieve goals and objectives of the company.
Hence, organizations need to attract, retain and motivate employees. The main objective of this study is
to assess the perception of current compensation and benefit practices of Ethio Telecom. The research
adopted both quantitative and qualitative approach. The study used simple random sampling technique
to select the respondent from the target population sample size was 135 for different level of employees
to fill questionnaires. All the samples were taken from the Ethio telecom employees purposively because
strategies and policies are made at branch level and then cascaded to the regional branches. Data
analysis was done using descriptive statistics with the help of numbers, percentage ratings were used to
present the perception of the respondents. Consequently, findings showed that employees perceived the
current compensation and benefits is somehow adequate, employees have participated in compensation
and benefits decision making, and compensation and benefit policy has been periodically updated and
communicated to employees. In addition, the management group reflected that the company does have
benefit policy for project teams. Moreover, it was perceived that the effectiveness of compensation and
benefits package was evaluated and revised based on needs and circumstances. In line with this a
recommendation is forwarded on points that the compensation and benefit policy should be periodically
revised, participation of employees on development and implementation of the policy must be considered
positively in furthering mutual understanding and it is better to more develop benefit policies for project
management teams as their tasks are the most important, complex and somehow peculiar from duties in
operational divisions of the company.
