ASSESSMENT OF VARIABLE PAY SYSTEM PRACTICES AND CHALLENEGES: THE CASE OF ETHIO TELECOM

Abstract

The major objective of this study is to assess Variable pay system practice and challenges of Ethio -Telecom. The research implemented both quantitative and qualitative approach. The study used random sampling technique to collect the data. The targeted a population of 4 managers for interview and 80 non-manager level employees to fill questionnaires. All the samples were taken from the Ethio telecom zonal office employees purposively assessment the real practice and challenge when implement variable pay system and policy then cascaded to the sales center branches. Data analysis was done using descriptive statistics with the help of numbers, percentage ratings were used to present the awareness of the respondents. Consequently, findings showed that employees real the current variable pay practice and challenge from the research it is observed variable pay system is considered as the reward which is given to employees against work to achieve organization objective and enhance performance on the way side of variable pay system on employee’s acceptance, Consistency, equitability, performance measures. Major findings shown that the consistency problem of variable pay system design majority of the respondents disagree it means that the practice of payment system is randomly not consistent and not revise regularly in addition that another finding shown Performance measures variable pay system design, majority of the respondents disagree it means that the practice of payment system performance meareument not standard only linked directly to output when implement the variable pay system is not clear performance criteria recommended The variable pay system revise Regularly and also A consistent approach to reward management means that decisions on pay do not vary arbitrarily without due cause between different sales type and business at different times. In addition, that for establishing effective variable pay plans is to make them easy for employees to understand. If these plans are clear, employees can track performance against the objectives of the plan and see what variable pay they are earning. Successfully using variable sales compensation requires establishing clear performance criteria and measure Finally, the ultimate goal of utilizing a variable pay plan and improving employee performance is to increase organizational efficiency and profitability.