. The Effect Of Compensation And Benefit Packages On Employee Performance: The Case Of Ambo Mineral Water Share Company

Abstract

The study has been conducted to examine the effect of compensation and benefit packages on employees’ performance at Ambo Mineral Water Share Company. The purpose of the study is to find employees’ perception of the company’s benefit packages and the relationship between employees' benefits and performance. The study utilized a mixed research method. The data was collected from 147 participants of whom 145 were considered to fill in the questionnaire and 2 of them took part in semi-structured interviews. The questionnaire has a 5-point Likert scale in which participants were allowed to express their views and state one’s agreement or disagreement on each item. Multiple Regression Model has been used to analyze the data collected using a questionnaire considering employees' benefits (health insurance, retirement benefit, paid time off, and training and development) as independent variables and employees’ performance as dependent variable. The findings of the study depicted that health insurance, retirement benefits, and training and development have a positive relationship with employee performance. The company observed such compensation and benefits that contributed to enhancing employees’ performance. Thus, optimization of benefit packages, continuous model refinement and focusing on well-being of employees could help to enhance employees’ performance