COMPENSATION AND BENEFITS PRACTICE OF ABAY BANK SHARE COMPANY AND ITS IMPLICATION FOR EMPLOYEES PERFORMANCE

Abstract

The general objective of this study is to assess the compensation and benefit practice and its implication on employee’s performance in the case of Abay Bank. It is also clear from this research that compensation and benefit practice have its own implication on employee’s performance. In designing the questionnaire the researcher apply by using four dimensions of Compensation: Benefit, performance based salary and satisfaction. The purpose of this research paper was descriptive; by applying a 10 % precision level 70 respondents were selected from the total number of 234 employees of the bank. The researcher applied a simple random sampling technique to selected respondents from the total number of employees of the four branches. Major findings revealed that the implication of compensation and benefit on the employees performance in he selected organizations was dissatisfied in most core human resource dimensions (i.e. Benefit, fairness etc,), So the company must revised the existing compensation and benefit package that might enable the company aligned with organization strategic objective to increase productivity an job satisfaction is what in needed in the Abay bank S.C. Most employees of the bank are dissatisfied with the benefit package of the organization, the researcher recommended ways to improve the existing scheme of benefit package. Management of the organization keep their selves up to date with the benefit package of the competitors. That would help them to get informed about the external environment and that in turn leads to retain and attract a skilled workforce.