Employees’ Perception towards Compensation and Benefit Policy: The Case of Some Selected Government Higher Education Institutions in Addis Ababa
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Date
2010-06
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Addis Ababa University
Abstract
This study examined the perception of employees regarding the compensation and benefit policy
in government higher education institutions found in Addis Ababa. 150 employees from three
institutes namely Addis Ababa University, Ethiopian Civil Service College, and Kotobe College
of teachers’ education participated in this study and 96 questionnaires were returned that gave a
response rate of 64%. Data was collected using a set of questionnaires which consists three
parts including demographic information of respondents, 30 likert’s scale perception items, and
additional and open-ended questions. Data analysis was done using descriptive statistics using
SPSS 15.0; number, percentage, and mean rating were used to present the perception of the
respondents. Findings showed that employees perceived the current compensation and benefits
inadequate, employees did not participate in compensation and benefits decision, it is not
periodically updated and communicated to employees. Moreover, it was perceived that the
effectiveness of compensation and benefits was not evaluated and the policy was no revised. It
was recommended that the compensation and benefit policy should be periodically revised taking
into account the market conditions and nature of the job. The analysis indicated that there was
no significant difference in perception between gender and job category there was a slight
difference between age groups, educational qualification, work experience, and salary level of
employees.
Key Words: Compensation and benefits; Employee’s perception; higher education
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Keywords
Compensation and benefits, Employee’s perception, higher education