Effect of Compensation Management Practices on Employees’ Job Performance in Ethio Telecom Contact Center
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Date
2024-06-05
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A.A,U
Abstract
The purpose of this study was to investigate the effect of compensation management practices on
employees’ job performance in Ethio Telecom contact center. Descriptive and explanatory
research design was used in the study. Primary data were used to get appropriate data. Target
population of study was employees and managers of Ethio Telecom Contact Center. Samples 109
were selected through simple random sampling technique. Structured questionnaires and
interview were used as methods of data collection. Descriptive and inferential statistics were used
to analyze data. Tables and figures were used to present data. Statistical Package for Social
Sciences (SPSS) version 25 software was used to data analyze. The finding of this study showed
that attitude of employee towards compensation management practice of the ET in Contact Center
was found at good level for variable payment and work condition management practice, while
found at moderate level for Salary, benefit, promotion, career growth opportunities, supervisor
support and recognition management practice. Even though the status of employees’ performance
of organization was found at high status the areas need attention. The correlation result also
revealed that there is positive relationship between compensation management practices and
employees job performance. Furthermore, the study found that compensation practices of the ET
contact center has significant effect on employees’ performance (F=140.995, Sign=0.000,
P<0.01). So it is concluded that the compensation practices affect the employees’ job performance.
Based on the above finding the researcher recommended that the ET should revise the indirect
financial compensation system like medical, stock ownership accident relief, educational
reimbursement, hardship allowance and profit sharing for employees to make them satisfied and
productive.