Assessment of Employees’ Perception Towards of Compensation and Benefit Policy the Case of Dashen Bank Sc.

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Addis Ababa University


This project paper studied employees’ perception towards of compensation and benefit schemes, the case of Dashen Bank S.C in Addis Ababa. The main objective of this research is to examine what looks like the current compensation and benefit scheme of Dashen bank, to what extent the compensation and benefit scheme updated and communicated periodically to employees, to what extent the bank offered compensation and benefit schemes based on employee performance, and to what extent the compensation and benefit scheme satisfy the criteria of fairness based on employees’ perception. And after identifying the gaps to propose possible solution for the bank that benefited to retain its key employees in the future. The research was conducted on 875employees of south Addis District Office and 41 branches under south Addis District Office by selecting274 as a sample from the population obtained by the formula Yaro Yamane (1969). Data was collected through questionnaires from 261 respondents and interview from human resource work unit of the district office. Data analysis was done using descriptive statistics like tables, frequency, charts and percentage, in order to present the perception of the respondents. Findings showed that employees perceived the current compensation and benefit that Dashen bank has been working are inadequate when compared to banking industry and employees are not participating in compensation and benefits decision making and compensation and benefit Schemes do not depend on individual performance rather performance of the work unit. Moreover, the bank is inefficient to update and communicated periodically to employees. It was recommended that the compensation and benefit Schemes should be revised periodically; taking into account the banking industry, the nature of the job and the employees’ desire and needs beside to this, adequate compensation and benefits has to be provided to encourage employees performance and to retain competent employees



Compensation, Benefit scheme, Employees perception