The Effect of Compensation Practices on Employees' Job Satisfaction: A Case Study of MoHA Soft Drinks S.C. Hawassa Millennium Pepsi Cola Plant

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Addis Ababa University


The globalization era requires employees to have good performance and results. Therefore, many companies implement compensation system. Effective compensation is expected to add value to employees’ job satisfaction to stimulate employees to always work better. The objectives of the study were to determine the effects of compensation practices on employees’ job satisfaction in the Case Study of MoHA Soft Drinks S.C. Hawassa Millennium Pepsi Cola plant. The study employed descriptive survey research design. Simple random sampling method was used to select a sample size of 204 employees drawn from the target population of 417. Responses had collected through administration of questionnaire. To ensure the validity of the instruments, both face and content validity had used. Data collected was categorized coded and then tabulated using SPSS. The quantitative data was analyzed using descriptive statistics, means frequency tables and percentages. The research findings have shown that pay, recognition, promotion opportunities, and meaningful work are factors of compensation management, which have significant effect on job satisfaction on Employees. It can be conclude that Compensation at MoHA Soft Drink S.C. Hawassa millennium had classified as good and can improve employees’ job satisfaction. The analysis has shown that a close correlation between compensation practices and on employee job satisfaction. The result of the study suggests that compensation practices are important factors that company need to focus to keep employees’ satisfaction.



Compensation, benefits, work–life benefits