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COMPENSATION

PACKAGES FOR
EMPLOYEES
Zoha Ahmad Ayesha Ahmad
Hassan Zaidi Abdullah Saleem
Waleed Shaheen
Compensation packages
• To attract and reward hardworking employees
• To ensure employee retention
• Combination of
1. Salary (direct)
2. Fringe benefits (indirect)
• Unlimited number of benefits that can be given, for example:
1. Health insurance
2. Vacation days
3. Training opportunities
4. Accomodation
Our company: Reckitt-Benckiser
• Reckitt-Benckiser is an FMCG company which was formed in 1999 by the merger of
British company Reckitt and Colman plc and Dutch company Benckiser NV.
• RB has 5 core values on which its model is based, Responsibility, Ownership,
Entrepreneurship, Achievement, and Partnership.
• RB is a Multinational Company which has a wide out reach in 60+ locations and 40k
employees. It is incorporated in Pakistan as a public limited company.
• RB is a producer of health, hygiene and home products. With other brands belonging
to three further categories: food, pharmaceutical, and portfolio brands.
The Industry
FMCG industry mainly deals with production, distribution and packaging of consumer
goods.
The competition in this industry between companies is very increasing at an exponential
rate with increasing investment rate as well.
The main factors resulting in such fast growth are low operation cost and fast distribution.
Some well known FMCG companies are, Unilever, RB, Nestle and etc.
All the major FMCG companies are in a fierce competition and every minor detail gives
them an edge over the other
As all departments are important for a company, HR plays a vital role in making the
company organized and structured.
The Human
Resource System
HR plays vital role in :
• Planning
• Monitoring
• Motivating
• Meditating
HR tools to boost employee
performance
• Performance
appraisal
• Career EMPLOYEES
planning PERFORMANCE
• Employee FORMANCE
Participation
• Job definition
• Compensation
• Selection
Our Questionnaire
• Purpose
WHAT TYPES OF
COMPENSATION PACKAGES
DOES RB GIVE TO ITS
EMPLOYEES?
Question 1
Answer 1
• Medical benefits for immediate family • Paid leaves
• Promotion and bonuses • Maternity leaves
• Accommodation (rent expense) • Pension funds
• Cars (fuel expense) • Training opportunities
• Education fees of children • Recreational trips to foreign countries
• Phones and phone plan budget • Memberships at clubs
HOW OFTEN DOES RB GIVE
THESE PACKAGES TO ITS
EMPLOYEES?
Question 2
Answer 2
• Depending on RB’s growth in the market
• Benefits provided must have equal intervals
• Given to employees with excelling performances
• 10% excellent employees on the bell shaped curve receive bonuses
• Yearly salaries remain constant
• Limit on medical insurance above a certain amount
• Higher positioned employees receive more frequent benefits
• Recently, a project success lead to RB rewarding employees on a vacation trip to
Turkey.
HOW MUCH DO THE
PACKAGES DIFFER
ACCORDING TO
HIERARCHICAL POSITIONS?
Question 3
Answer 3
• Employees at all positions receive medical benefits, phone expenses including calls,
SMS and internet bundles.
• The managers are the first category to receive a car from RB.
• Positions above one of managers receive a Corolla.
• The directors are the top tier employees who receive the entire portfolio of benefits.
• These benefits are required to keep them driven to show excellent performances and
to help make RB grow.
HOW DO THESE PACKAGES
AFFECT EMPLOYEES' WORK
PERFORMANCE AND MORALE?
Question 4
Answer 4
WOULD RB PREFER GIVING JOB
PACKAGES WITH HIGHER
SALARIES BUT MEAGRE FRINGE
BENEFITS OR VICE VERSA?
Question 5
Answer 5
DOES RB BELIEVE IN
STANDARDISATION OR
INDIVIDUALISATION OF PACKAGES? IF
BOTH WHAT IS THE PERFECT RATIO?
Question 6
Answer 6
• It depends on the nature of the job and the position on which the employee is hired.
• The higher the involvement in the organization will receive higher packages.
• Standardised in a way that all the employees working at similar levels will get similar
package.
TO WHAT EXTENT DOES BONUS
WORK TO INCREASE
PRODUCTIVITY FOR
EMPLOYEES?
Question 7
Answer 7
• Bonus in a motivational factor for an employee.
• The company’s performance is directly related to the calculated bonus, so the better
the organization perform the better bonuses employees will receive.
• Employee’s productivity is also graded that links to his/her promotion too.
Recommendations
• Pay ranges should be evaluated at regular intervals.
• RB needs to continue to stay informed of market changes.
• RB should differentiate increase based on individual employee
performance.
• Consider using a compensation consultant.
CONCLUSION