Workie, Bantie (Ato)Woldemichael, Frehiwot2019-03-122023-11-042019-03-122023-11-042018-05-12http://etd.aau.edu.et/handle/123456789/16702The purpose of this study is to examine the role of compensation practice on employee’s satisfaction in Desta Garment and Tasty Food factories, which are sister companies to BEKDES PLC. The company’s compensation system consists of financial and non-financial compensation system. Data was collected through questionnaire which is adopted from various researchers work. The validity of the instrument was checked using Cronbach Alpha and the result was 87.2%.From 814 target population, 204 questionnaires were distributed to the sample respondents among two factories. From the distributed of 204 questionnaire, 107were responded. Descriptive Statistics and frequencies were utilized to analyze the data. Interpretation is made on frequency and percentage of the data. The study’s result has implied that compensation system has a positive role on employees’ job satisfaction in Desta Garment and Tasty Food factories. Three hypotheses were supported to show the relationship between dependent and independent variables. Success of any business is depending upon its people, therefore, to retain the qualified and to recruit experienced employees, organizations has to give due consideration in establishing better compensation system. BEKDES Plc. as a parent company, should give due consideration in conducting research on compensation system of other related sectors. The company should revise the financial compensation system like medical, stock ownership accident relief, educational reimbursement and profit sharing, for employees to make them satisfied and productive. BEKDES Plc. as a parent company, should give due consideration in conducting research on compensation system of other related sectors. The company should improve their compensation strategy to boost employees' dedication and commitment to efficiently increase employees’ satisfaction, this will improve the sector's image. Both factories should promote adequate benefit system in order to reduce absenteeism and employee turnover. Garments and Tasty Food should design and implement training exercises as a reward for committed and dedicated staff members improve their compensation strategy to boost employees' dedication and commitment to efficiently increase employees’ satisfaction, this will improve the sector's image. Both factories should promote adequate benefit system in order to reduce absenteeism and employee turnover. Garments and Tasty Food should design and implement training exercises as a reward for committed and dedicated staff membersen-UScompensationtotal rewardcompensationThesis