ASSESSMENT OF EMPLOYEE’S PERCEPTION TOWARDS COMPENSATION AND BENEFIT SCHEMES AND PRACTICES: A CASE STUDY OF BANK OF ABYSSINIA

Abstract

This study assesses employee’s perception towards compensation and benefits schemes of selected branches of Bank of Abyssinia. The study also tries to assess employees’ perception of different types of compensation practice and their motivation in the bank work environment. The study was quantitative approach and cross sectional, which used structured interview questions to gather information. Bulletins, Internet and other references like the bank procedure manuals had been also used as secondary sources of data to support the primary data. Stratified sampling is applied in order to identify the number of branches from each of district offices and proportional sampling techniques was employed to identify the last 205 study units. Descriptive statistics data analysis method was applied to analyze quantitative data using SPSS version 24. The result indicates, there is a positive perception of equitable wage and salary with experience, insurance (health and safety), different loans, relevancy of their jobs to the bank’s development, existing work environment and existing compensation and benefit scheme. However, there are negative perceptions among employees towards allowance payment, reward for exceptional performance, predictability of rewarding system, the banks support for tuition and registration for education, recognition and appreciation for better performance, organizational culture and work place safety and protection. In conclusion, the research has informed the presence of both positive and negative perceptions on the existing financial and non financial incentives in the Bank. Accordingly, the researcher has recommended the management team of the bank to re-design strategies to strengthen employees’ positive perceptions and to study in different methods on the negative opinions toward their compensation and benefit schemes provided by the bank.