Employee Perception On Compensation And Benefit Practices: Thecase Of Ethio Telecom, Ambo District, West Shewa Zone, Oromia, Ethiopia

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.