Abstract:
Compensation management is an integral part of human resource management approach to
productivity improvement in the organization. high staff turnover, work inefficiencies and other
macroeconomic issues are identified as its weaknesses and threats So far, no systematic study has
been undertaken on employee’s perception on compensation and benefit in Commercial Bank of
Ethiopia at Holeta town .Thus, this study was undertaken with the objectives: to analyze the
employee’s perceptions on their financial compensation and benefits; to investigate how the
employee’s perceive on their non-financial benefits, to identify sat faction level of employees on
their compensation and benefit ,and to identify the influence of compensation and benefit practices
of Commercial Bank of Ethiopia in the Holeta town .The study used a explanatory research
design. A structured questionnaire, key informants’ interviews and focus group discussions were
used to collect data. Descriptive statistics such as frequencies, means, and percentages were used
for data analysis.. The study employed random sampling techniques to select of 120 respondents in
the study. The findings revealed that the current compensation and benefits offered by the Bank is
not fair and with the ongoing cost of life; From the study it is concluded that employees not
satisfied with the fairness of current compensation and benefit in both financial and non-financial
compensation and benefits and they challenged by the influence of compensation and benefit in
order to cope with the current market. Finally, from the study it recommended that Commercial
Bank of Ethiopia should develop and design an effective compensation and reward system to
satisfy and retain trained, experienced and skilled employees.
