EMPLOYEES‟ PERCEPTION TOWARDS COMPENSATION AND BENEFIT MANAGEMENT: THE CASE OF ADDIS ABABAUNIVERSITY MAIN CAMPUS

Abstract

The main purpose of this research is to assess employee perception towards compensation and benefit management. the specific objectives of the study The employees’ perception about the compensation management system of the organization, to describe the role of employees in compensation, benefit decisions and degree of communications about and benefit Packages, and to identify the most favored type of benefit Management available with the organization. The researcher used random sampling technique and 296 employees were selected from 6 killo main campus in this study. Questionnaires were distributed to sample respondents and all questionnaires were returned. Interview questions also developed for 6 killo main campus employee’s compensation, benefit and relation manager. Data analysis was done using descriptive statistics like tables, frequency and percentage, in order to present the perception of the respondents. Findings showed that Majority of the respondents reflect that the company compensation and benefit does not a capability of attract new employee and retain the existing employees in the company. The current compensation management system is not allows employees for taking up higher responsibilities. Employees less participation in compensation and benefit decision process. Regarding to the compensation and benefits updated and communicated periodically the majority of respondents are disagreeing; it is not periodically updated and communicated. The organization to attract and retain top talent should give more incentives than the private companies can do. It can motivate and improve the morals of the employees by rewarding employees based on their performance. Employee empowerment is also a key strategy to enable people who have the need, the answers, and the knowledge, to make decisions about how to best serve customers takes high responsibility. The organization should work with employees to create an environment which foster improved decision making. Compensation and benefit should not be a onetime issue and need to be evaluated periodically for effectiveness. The company should seek for various ways of improving employees‟ performance in their company by finding out the effect, causes or problems associated the compensation and benefit scheme which will help them to identify those things that motivate their staff and apply them properly