6.

Conclusion and Recommendations

In your opinion does the organization has a structured salary compensation approach?

Structured Compensation salary approach means a range structure which is a hierarchal levels of
jobs and salary ranges within an organization. Salary structures are an essential component of
effective compensation programs in any given organization, it helps ensure that pay levels for all
employees are competitive externally and equitable internally. The salary compensation
approach at ARY Digital Network is structured. They have a defined system or pay and benefits.
ARY Digital Network also provides exceptions for high performing employees in terms of
additional benefits. It helps retain high performers and boost their morale.

How in your opinion can it improve its compensation policies or structure?

It is very important to keep the compensation structure transparent and justifiable. They ranges
are to be structured grades-wise in a way that the employees are satisfied with the structure.
The compensation policies at ARY Digital Network are structure however there is room for
improvement. They can improve their compensation structure by further streamlining pay
equity. Pay equity is when the compensation provided to an employee is justified compared to
the work and skills that the employees invests in the job. At ARY Digital Network, they can
further align the pay equity by paying their staff as per their skills and qualification level, as it is
not the case with all employees.

How do managers and employees view the company’s compensation policies – for middle
management and senior management?

A structure compensation system is to be implemented throughout the organization, it has to

have a grade/ range for labor as well as middle and senior level employees. At ARY Digital
Network, there is a compensation structure however there are some executives whose
compensation structure is not as per their qualification and skills. Some middle and senior
manager’s pay is not equitable which creates demotivation and grudges in employees against
the organization.

How do they see themselves compared to the market?

It is important for any organization to stay at par with their competitors in the industry because
otherwise their employees will be compelled to switch and it will be difficult to retain them.
Employees at ARY Digital Network believe that their salary structure although their salary
structure is not comparable to multinational organizations, but it is much better and structured
as compared to their competitors in the same industry. They have a very competent salary
structure in comparison to their competitors.

In which sector do they fall-food, engineering ,banking, FMCG, Insurance ,SME etc?

ARY Digital Network falls in service sector.

Who are their main competitors?

Their main competitors Geo tv, Bol, SAMAA, and now GNN

Who is the main source of hiring? Internal , promotions, MTs, outside?

ARY Digital Network main source of hiring are depending on outsiders they are hiring from portal
from universities through advertising as well and also from other competetor organizations but
it is also concerned regarding for which designation like loader , news caster, reporter etc and
internal promotions are there but are quiet restricted .

How do employees view break –up of their compensation package –cash vs non-cash , fixed vs
variable component ?

ARY Digital Network outsourcing concerned with fixed pay other than that for the recruitment it
is based on incentive pay. The variable aspect of the compensation package is made keeping in
view the market trends and employees in ARY Digital Network appeared to welcome the
accolades given in annual events with yearly bonuses.

Review of problems being faced by the particular position – does it relate to difficulty in

hiring? Demanding high salary, retaining, and technical position? etc.

If anyone of the company shows any kind of apprehension regarding the compensation package
or asks for more than the salary bracket at any position they are not retained even if they are
competent with good skills. They consider their pay equity well maintained with respect to
market trends. They never hire anyone who asks for more than the salary range that is allocated
for that specific position/grade, which reduces the grievances that may be faced in the future.

Identify areas of deficiency in the company’s existing compensation structure, relating it to a

particular grade/position the company has been difficulty in recruiting or retaining.

The most problem they face is while retaining the new fresh talent at executive level because
various MNC’s have broader salary ranges. They are competing simultaneously with local as well
as MNC’s. While their compensation package is slightly better than the local competitors, it is
not enough to retain people at executive level when a job offer comes from multinationals.
There is a lot of reference based hiring because their recruiting channels are not streamlined and
their average time to fill job vacancy at managerial level is only 8.6 days which is extremely low.
Keeping in view the information gathered from the company, it is evident that it does not have a
very structured approach towards compensation management of its employees. The most
important asset of a company are its employees and their view of pay equity is a big factor in
playing an active role in sharing the organizational objectives and moving towards the shared
vision. The answers gathered from the interviews by employees showed that they have little
faith in the company’s compensation plan which is a critical indicator of the long term loss the
company will face if it does not take an action soon. Other than the pay grades and their ranges
nothing else is defined. The company needs to re-asses the budget allocation for the employee’s
compensation plan by allocating 52% of the compensation for fixed pay and divide the remaining
into various variable pays and compensations like health insurance, bonus, paid leaves, profit
sharing etc.

The KPI’s need to be connected with appraisal and it should be directly linked to the
direct/indirect benefits that employees get due to excellent performance.