Business and Economics Journal

Effectiveness of Employees Compensation-Measured by Customer Satisfaction (Study Conducted at Private Banks of Ethiopia_Snnpr_Wolaita Sodo Branches)

Abstract

Mengistu Matino

Employee compensation refers to the benefits: cash, vacation, etc. that an employee receives in exchange for the service they provide to their employer. Employee compensation is generally one of the largest costs or expenses for any organization. It is the total amount an employee can expect to receive when working for an organization. The effectiveness of employee`s Compensation at Wolaita Sodo private banks are one of the work which have been doing or considering the main duties with the main sectors of banking to run market and marketing activities, construction sectors, and other complex business sectors by the help of an experts. The purpose of this study is to analyse some of the most important internal and external factors that affect the effectiveness of compensation on working condition or benefit of private banks in Wolaita Sodo City. In addition to this, the study evaluate the effects of firms’ ability to pay, employee productivity, compensation by laws and regulation, reward strategy as well as job requirements on the compensation system. Primary and secondary data are the main values that applied in this research study. To determine the study population, the researcher has used the stratified sampling method. The data collected from the whole respondents and used descriptive statistics. The data analysed using descriptive statistics such as, percentage, frequency distribution table and standard deviation and presented by using tables.
The result from the analysis show that, many of internal and external variables have significant impact on Private banks compensation, while very few of them have no significant impact on banks compensation.
This study is relevant to academician, researchers and industry people who work in the field of private banks. Besides on these research findings, the private bank heads of the Wolaita Sodo with concerned bodies may conduct the extra benefit by the help of the special significant variables and the sector should take care especially, the current government business systems. In addition to this, the other researcher may come up with different projects that let the workers to stay connected with the working organization.