EMPLOYEE’S PERCEPTION TOWARDS COMPENSATION AND BENEFIT SCHEMES: THE CASE OF UNITED BANK S.C.

Abstract

This study examined the perception of employee’s towards compensation and benefit schemes: the case of United Bank S.C in Addis Ababa. The research was guided by the following questions: What was the perception of employees towards the existing compensation and benefit scheme of the bank, to what extent the compensation and benefit scheme updated and communicated periodically, to what extent the bank offers compensation and benefit schemes based on employee performance, and to what extent the compensation and benefit scheme satisfy the criteria of fairness. And also the study had the following specific objectives: to assess the perception of employees towards the existing compensation and benefit scheme, to assess the extent to which compensation and benefit schemes are updated and communicated periodically, to identify the extent to which compensation and benefit offering is based on employee performance, to identify the fairness of compensation and benefit scheme. The population was 150 employes from 6 branches namely Birramba, Bomb tera, Wenber tera, Military Tera, Tana and Cinima Ras. The sample size was 110 by using published table.. The data presented with descriptive statistics using Statistical package for social science (SPSS) version 20. Number and percentage were used to present the perception of the respondents. The study demonstrates high internal consistency and the total Cronbach alpha coefficient was 0.91. Findings showed that employees perceived the current compensation and benefits were not fair, employees did not participate in compensation and benefits decision, it is not periodically updated and communicated to employees. Moreover, it was perceived that the effectiveness of compensation and benefits was not evaluated. It was recommended that the compensation and benefit scheme to be periodically updated and communicated and it is recommended the bank to link its compensation and benefits schemes to its organizational goals and objectives