ASSESSMENT OF COMPENSATION PRACTICE IN ASKU & BERHANE INVESTMENT GROUP (ABIG)

Abstract

Compensation is a complex topic that has a significant impact on organizational success (Luis et al., 2018). The main objective of this study was to assess Compensation Practice in Asku & Berhane Investment Group (ABIG). Specifically, it aimed to describe types of compensations, compensation practices, benefit of compensation practice and employees perception of the compensation practice in Asku and Berhane Investment Group (ABIG). The study used descriptive research design. Primary data, through structured questionnaire was collected from samples of 216 employees of Asku & Berhane Investment Group (ABIG). Simple random sampling was used to select samples from the target population. Data were analyzed using descriptive statistics with the help of SPSS version 23. The finding shows that the employee satisfied with indirect financial compensation and non-financial compensation and happy with the working condition, the working hours, organizational culture and work environment. However, the employee not satisfied with direct financial compensation, participation in compensation and benefit decision process and compensation practice and perceive there is a problem related with adequacy and equitability of payment. Therefore, Asku & Berhane Investment Group (ABIG) should assess area of problems to be addressed in the area of direct financial compensation, participation in compensation and compensation practice by taking continuous follow-up program and a feedback to evaluate the outcome of the compensation practice and take corrective actions. And the future research should investigate the effect of compensation practice on employee performance.