ASSESSMENT OF COMPENSATION MANAGEMENT PRACTICES AND CHALLENGES: THE CASE OF NETWORKS OF NETWORKS HIV POSITIVES IN ETHIOPIA (NEP+)

Abstract

Compensation is the most critical factors in attracting and retaining high quality employees. The aim of this study is to examine the actual compensation practices and challenges of Network of Networks of HIV Positives in Ethiopia. To meet the objective, researcher adopted descriptive research design by using qualitative and quantitative data interpretation. From the total of 50 employees the sample areas of study 45 employees have been selected by using purposive sampling techniques. The primary data was collected through questionnaire with employees and interviews with the top managements. The data has been analyzed by using descriptive statistics, frequency and tables. From the research it is observed financial compensation is considered as the reward which is given to employees against work to support their family, and payment for the work which is done. Then, the researcher was investigating the practice of compensation on employees basic salary, ability to pay, job requirement, government regulation, cost of living index, and labour market. Major findings revealed that the practices of compensation in Network of Networks of HIV Positives in Ethiopia is unsatisfactory, unfair and not competent with the market. Majority of the employees are dissatisfied with compensation system and there is high turnover as it is confirmed from the employees' personnel records. The researcher recommended the organization must revised the existing compensation package aligned with the internal and external factors and also top management must keep themselves up to date with the compensation package of the competitors. Because that would help them to get about the external environment and leads to retain and attract a qualified workforce.