ASSESSMENT OF EMPLOYEE PERCEPTION ON COMPENSATION AND BENFIET PRACTICES: THE CASE OF ETHIO TELECOM

Abstract

The major 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 random sampling technique to collect the data. The targeted a population of 30 managers for interview and 285 non-manager level employees to fill questionnaires. All the samples were taken from the Ethio telecom head quarter employees purposively because strategies and policies are made at headquarter level and then cascaded to the zonal and 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 has never participate in compensation and benefits decision making, and compensation and benefit policy has not been periodically updated and communicated to employees. In addition, the management group reflected that the company doesn’t have benefit policy for project teams. Moreover, it was perceived that the effectiveness of compensation and benefits package was not 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 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