THE RELATIONSHIP BETWEEN BENEFIT PACKAGE AND EMPLOYEES’ PERFORMANCE IN BANK OF ABYSSINA

Abstract

The purpose of the study was to determine the relationship between benefit package and employees’ performance in bank of Abyssinia. The study was guided by the following research questions:(I) What is the level of employees’ performance in the Bank? (II)Do employment bonus benefits enhance employee performance in Bank of Abyssinia? (III)Does recognition enhance employee performance? (IV) Does retirement benefit affect employee performance? The major limitation of this research is that this study only used employees at head office and Addis Ababa branches. Another limitation is that it excludes many variables of benefit due to shortage of time. Funds were also another limitation. A descriptive research design and regression analysis was adopted. The populations for the study were senior employees of Bank of Abyssinia. The study population comprised a total of 500 employees from various functions. Stratified random sampling technique was used to draw a sample size of 150 respondents. A structure Likert Scale format questionnaire has been used for data collection developed by the researcher. A set of descriptive statistics including charts and tables were used to present the results of the study. Correlations among the variables were calculated using Statistical Package for Social Scientists (SPSS) version 20.The survey found out that there is significant and positively relationship between bonus benefit and employee performance. Similarly, recognizing employees significant and positively affect employee performance. In contrast to the above findings, retirement is significantly and negatively affects employee performance. In conclusion the study demonstrated that provision of bonus, and recognition to employees enhances job performance. The study also concluded that providing of retirement to employees dispirit employees’ performance. From the study it can be recommended that; Bank of Abyssinia should raise providing bonus benefits to all employees at satisfactory level, as they positively influence employee productivity and raise overall performance in the bank. The bank should also increase providing recognition to its employees since it helps them create a sense of loyalty and encourage their performance. The bank should pull old-aged workers who are paid high retirement out of employment as the aged workforce result in low job performance.