The Effect of Variable Pay Scheme on Employee Engagement-The Case of Ethio Telecom
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Date
2021-03
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Addis Ababa University
Abstract
Employee engagement is considered as one of the most powerful drivers of a company’s competitive advantage and high performance. Numerous factors including variable pay scheme affect employee engagement. This study focused on investigating the effects of variable pay scheme on employee engagement in ethio telecom and the effectiveness of the scheme against the common elements defined by scholars. The variable pay scheme covered under the study were individual variable pay and companywide annual bonus.
The study applied correlational research approach to investigate the relationship among components of variable pay scheme and employee engagement taking a sample of 347 respondents drawn from a target population of 2638 employees of ethio telecom. Primary data was collected through closed ended structured questionnaire and analyzed using descriptive and inferential statistics.
Findings of the study revealed that there is a positive relationship between variable pay scheme and employee engagement. Further, the study shown that variable pay scheme moderately affects employee engagement. The variable pay scheme of the company is found effective
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Keywords
Variable Pay, Employee Engagement, Employee Effectiveness