EMPLOYEE PERCEPTION TOWARD COMPENSATION AND BENEFIT PRACTICES: THE CASE OF ST.MARY’S UNIVERSITY AND RIFT VALLEY UNIVERESITY: ADDIS ABABA

Abstract

The study aimed at describing and examining employee perception towards compensation and benefit practice: with particular references of St Marys and Rift Valley University in Addis Ababa. Descriptive research design was used for this study. The data were collected through survey questionnaires, interviews and from different documents like thesis and books. The target populations of the research were permanent academic and administrative staffs of the two institutions namely St Mary’s university and Rift Valley University (Ethiopians). There are around 1082 permanent academic and administrative staffs in the two institutions (St Mary’s University and Rift Valley University local staff) among which 116 voluntary respondents are participated in the survey questionnaires and two HR managers participated in the interview. The data were analysed using descriptive statistics (frequency and percentage) with the help of SPSS version 20. Results revealed that employees strongly disagree/disagree with most of the issue raised in the study those issues are effectiveness of compensation and benefit practice, Compensation and benefit decision process, Issues about over all compensation and benefit, issues related to pay package and benefit and most respondents rate their current basic salary unfavourable. The analysis also indicated that there was no significant difference in perception towards compensation and benefit practices as a result of demographic difference of employees. The finding shows that the compensation and benefit practice in private higher education institution were very unsatisfactory and the situation pave the way to say so. The researcher recommends the institution to update the current compensation and benefits practices.