Abstract:
Attractive compensation package scheme enables an organization to attract, recruit and retain competent employees, to increase employee’s morale and productivity and ensure transparency. Since employees are a resource it is important for managers to ensure that they are able to get a return on their investment. This research was aimed at assessing the compensation practice of Ethiopian public health institute. The major initiation to conduct this research was to understand the financial and non-financial benefits that EPHI offers to employees. A descriptive research method on both quantitative and qualitative research study was adopted to undertake this research. The questioners were developed using a five-point Likert scale and the researcher used simple random sampling technique to select sample population. The interview was semi-structured. Interview was also conducted with HR manager of the institute. As per the overall survey, the existing compensation practice doesn’t satisfy the overall needs of the employees. Therefore, EPHI needs to revise the compensations package policy by assessing the current cost of living, the nature of jobs and employee’s expectation.