| Keywords: | Compensation, Employee Job performance, Salary, Bonus, Benefit, Recognition, Promotion, Responsibility |
| Abstract: | This study aims to examine the effect of compensation on employee’s job performance in the case
of Ethio telecom contact center employees, Addis Ababa, Ethiopia. By using the six dimensions of
compensation (Salary, bonus, benefits, recognition, promotion and responsibility). In order to
address the aim of the study, only primary data was collected and employed. In total, 323
questionnaires were distributed to the employees of Ethio telecom and 296 of them were properly
filled and returned. The response rate was 91.6%. Stratified sampling method was used to
distribute and collect questionnaire-based survey on the five-point Likert scale. Multiple linear
regression analysis was used to analyse the data and to test six hypotheses. SPSS was used for
mean, standard deviation, correlation and regression analysis. The study has indicated that there
was positive correlation among all dimensions of compensation and employee job performance.
Besides, with regard to the effect of predictor variables on employee job performance, the study
indicated that out of the six predictor variables salary and bonus were found to have significant
effect on job performance of Ethio telecom contact center employees. Finally, the company is
recommended to give priority to the significant dimensions of compensation i.e., salary and bonus.
As a result, all the objectives of this study have been achieved |
