Employee’s Perception on Compensation and Benefit in Commercial Bank of Ethiopia at Holeta Town, Ethiopia

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.