COMPENSATION & REWORD

Student name

Submitted To: Marwa Hassona

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 Contents

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Step one : PWC........................................................................................... 6
Step Two: Brief description of the firm........................................................6
A. Vision................................................................................................... 6
B. Mission Statement.............................................................................6
C. History................................................................................................. 7
Step3: Describe the firm forms of pay?.......................................................8
Step 4: Identify and illustrate the firm pay model:....................................11
A. Compensation objectives...............................................................12
B. Internal Alignment..........................................................................13
C. Externally Competitiveness...........................................................13
D. Employee Contribution...................................................................13
E. Management..................................................................................... 14
Conclusion................................................................................................. 15
References................................................................................................. 16

Step one : PWC

Step Two: Brief description of the firm

A. Vision

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"Is their plan to make PWC the leading global professional service
organization by 2020, it include our purpose , ambition , strategy
and planning ."

They will ensure we win in a rapidly evolving world. It encompasses

an energizing purpose building a better working world; a bold ,
measurable , ambition ; a strategy to help us fulfill our purpose and
achieve our ambition; and a positioning that will set us apart in the
market.

B. Mission Statement

"World Wide, their people are united by their shared values and an
unwavering commitment to quality. They make a difference by
helping their people , their clients and their wider communities
achieve the potential growth".

To view change in market as an opportunity to grow, to use our

profit and our ability to develop & produce innovative products ,
services and solutions that satisfy emerging customers need

C. History

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PwC has been created by the merger of two firms Price
Waterhouse and Coopers & Lybrand each with historical roots
going back some 150 years. Set out below are some key milestones
in the history of both firms.

1849 Samuel Lowell Price sets up in business in London.

1854 William Cooper establishes his own practice in London, which

seven years later becomes Cooper Brothers.

1865 Price, Holyland and Waterhouse join forces in partnership

1874 Name changes to Price, Waterhouse & Co.

1898 Robert H. Montgomery, William M. Lybrand, Adam A. Ross Jr.

and his brother T. Edward Ross form Lybrand, Ross Brothers and
Montgomery.

1957 Cooper Brothers & Co (UK), McDonald, Currie and Co

(Canada) and Lybrand, Ross Bros & Montgomery (US) merge to form
Coopers & Lybrand.

1982 Price Waterhouse World Firm formed.

1990 Coopers & Lybrand merges with Deloitte Haskins & Sells in a
number of countries around the world.

1998 Worldwide merger of Price Waterhouse and Coopers &

Lybrand to create PwC.

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D. PWC product lines include

Advisory

Audit and assurance

Consulting

Deals

E. Geographic domain

PWC provides its service in Egypt Saudi Arabia and lebnon

Step3: Describe the firm forms of pay?

Pwc follow a very enhanced plan in compensation and that have

been showed off for its competitors

PWC concerns on the performance and relate the firm pay model
with performance

More production and efficiency PWC pay more to their employees.

Compensation can be divided into salary, benefits and incentives.

While salary and benefits must be competitive, incentives are the
most likely drivers of attracting and retaining the best employees
in startups. There are three key types of incentives:

Commissions are a common way to remunerate employees

(salespeople) for securing the sale of a product or service. The
intent is to create a strong incentive for the individual to invest the
maximum effort into their work.

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 Commissions are usually calculated as a percentage of the sale
of the product or service (for example, 5% of a computer
components retail selling price).

Payment may be either straight commission (no base salary) or a

combination of base salary and commission. In general, the
commission structure is based on reaching specific targets or
quotas that have been previously agreed upon by management
and the employee. These targets or quotas are typically tied to
sales revenue, unit sales or some other volume-based metric.

Total return include the following

A. Basic pay : in our enterprise we set basic salary according to

skills and education .
B. Merit payment: Merit payment was given as an increment to
the basic salary based on the past work behavior.

C. Cost of living adjustment: give the same percentage to every

one based on individual performance. PWC give from 10% to 15%
from basic salary every year to face price inflation.
D. Benefits : security retirement , employee leave, maternity and
paternity benefits. Income protection against disabled and
replacement.
Gratuity amount is based on pay rate at the end of employment. All
regular employees are entitled to contributory provident fund.
E. Work/ life balance: The program that better integrates work
and life responsibility includes time away from work.

F. Bonuses

Individuals are rewarded based on attainment of performance-based

goals (individual, team and/or company).

Goals must be realistic and closely matched to the business and

people involved.

Payout potential should be large enough to be significant to the

individual.

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Bonuses can be set up to directly drive and support the companys
needs (for example, profitability, annual results, successful
completion of projects and/or significant project milestones).

In general, if the company permits a long period from the date of

issue to the last date for exercising the option, it will encourage the
employee to stay with the company and be fully committed to its
success.

Number of employees: Around 5000 7500 (Approximately)

Minimum scale starts from 1200$ 3000$ (Approximately)

focuses on providing a large amount of compensation and benefits

to its employees in the form of the following categories:

Medical Allowance: One gross salary per year is given to each

employee; half is given in mid of the year and remaining half is
given at the end of the year.

Health Insurance: Like all other cellular companies.

health insurance policy to its employees. Loan Insurance: At Warid

Telecom Bangladesh Ltd, loan insurance policy is also provided to
their employees through banks.

Transport allowance

House Rent: 25% of the basic salary

G. Incentives : long term incentives Stock options

An individual receives the option to buy company shares for a set

price during a specified time frame.

Option can be exercised by the individual at any time during the

agreed-upon term and subject to any vesting schedule.

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Stock options are often part of managements executive
compensation but may be offered to key employees in lieu of a
higher salaryespecially where the business is not yet profitable
and/or cash flow is constrained.

If the business does well and the companys stock rises, the holders
of the options share in the financial benefits.

Determining Salary Structure and

Determination of Individual Pay Three questions need to be

addressed:

How should one employee be paid relative to another when they

both hold the same job in the organization?

Should we pay all employees doing the same work at the same level
the same?

If not, on what basis should we make the distinction?

Pay differentials are based on: Individual differences in experience, skills,

and performance Expectations that seniority, higher performance (or both)
deserve higher pay

Step 4: Identify and illustrate the firm pay model:

A. Compensation objectives

The basic objectives include efficiency, fairness and compliance with laws
and regulations.
1. Efficiency can be stated more specifically as improving performance,
increasing quality, delightful customers and stockholders and controlling
labor costs.

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 2. Fairness is a fundamental objective of the pay systems. The fairness
objective calls for fair treatment of all employees by recognizing both
employee contribution (e.g., higher pay for greater performance,
experience or training) and employee needs (e.g., fair wage as well as fair
procedures).
3. Compliance as a pay objective means conforming to labor laws and
regulations. If they change, pay systems may need to be adjusted to ensure
continued compliance.
4. Ethics : the firm concerned to set its own rules and regulations by setting
code of conduct.

Defining a compensation strategy is an important activity for all

companies, including startups. The compensation strategy must be:

- Affordable for the company

- Reasonably competitive such that it attracts and retains quality
people (efficiency objective)
- Structured to ensure that employees efforts are directed to
achieving the companys goals (efficiency objective)
- Your compensation strategy must be structured to best meet your
unique business circumstances. As a startup, you may not be able
to compete with large companies on salary. Therefore, you should
consider a combination of options to attract and retain key
employees. (efficiency objective and compliance )
- Do not underestimate the value of the advantages or perquisites
that your company has to offer that may not be readily available in
larger companiesopportunities for interesting work, lack of
hierarchy, flexible environment, and so on. (
- Some people are motivated by the desire to be on the leading edge
of scientific or technological advances. They may take less pay to
work for a startup if they believe in its future and the work it has to
offer Salary and wages ( efficiency )
- A salary (or wage) is a fixed amount paid in exchange for an
employees services. Ontario Employment Standards legislation
entitles most employees to receive a minimum wage in exchange
for the work they complete for a company.

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 For full-time employees, salary is generally described in annual,
monthly, bi-weekly or weekly amounts. For part-time employees, it
is generally described as an hourly amount. (ethics )
- To determine an appropriate salary and/or salary range that your
company is willing to pay for a position, you must:
- Establish the value of the position based on your organizational
requirements (compliance )
- Understand what the market is paying for a similar position
- Incentives: Drivers in attracting the best employees

B. Internal Alignment

- Part of PWC corporate cultural .

- Increase performance driven culture
PWC advertise in the firm for any new job before advertise
because our employees are the most skilled employees, PWC
use job evaluation according to rating score to set the pay
structure internally.

Comparisons among jobs or skill inside a single organization and

pay relationships within an organization affect employee decision to:

stay with organization,

become more flexible by investing in additional training, and

seek greater responsibility.

Our firm depend on classification method to evaluate jobs and to set the pay structure

We identified description of each job and put classes covers various jobs, the same
job description have the same salary.

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 C. Externally Competitiveness

The firm take in account competitors pay structure to retain its

employees and attract professionals

.. Ernest & young ,,, Its the major competitor for price international
It has the same capabilities, The same employment & Compete in
the same geographic areas

- Pay is market driven

- Effects of decisions regarding how much and what forms

to ensure that pay is sufficient to attract and retain employee

to control labor costs to ensure competitive pricing of products/ services.

There are others like (Employee Leave, Employee Retirement Income Security Act,
Executive Compensation, Maternity and Paternity Benefits, and Pension and
Retirement Plans. Group life insurance coverage is provided to all employees. In case
of an employees death, the beneficiaries of the employee shall receive the insurance
benefits. The amount would be doubled in case of accidental death.

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All employees, their spouses and children up to the age of 25 (no limits for the
unmarried daughters and dependent parents) are eligible for hospitalization.

The employees are eligible to claim their medical out patient expenses up to a
maximum of one months grass salary each year. The following are covered under out
patient treatment: 1. Consultation 2. Prescribed medicines 3. Pathological/clinical
tests and x rays.

D. Employee Contribution

Bonus and salaries increases according two factors (1) individual

efforts and performance plan (2) team work performance.

Relative emphasis is placed on employee performance and performance based pay

affects fairness.

Profit sharing

Payment is tied to company profits.

A pre-determined percentage of profit is shared among all

employees.

Profit-sharing bonuses are generally paid out once a year in the form
of cash or on a deferred basis.

E. Management
F. Decision of pay is determined by the top management after
taken in account the inflation rate , external variables such as
labor market wages changes, cost of living and rate of turn
over.

The top management determines budget to each branch according

to (ability to pay and competitors but also take in account talent
employees and how to retain them?

Each branch's manager divide his budget on department according

to different percentage.

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 G. Employees's understanding their pay directly through formal
communication or indirectly through the paychecks.
H. Employees shuld understand and appealing the pay system.
To become satisfied and motivated .
I. Top management, executives, supervisors and employees are
involved in designing and managing the system.
J. PWC 's performance and compensation department are
involved in controlling labor cost.

By match contributions depending on profits , in the case of loss

branches the firm may reduce benefit cost

Job Evaluation Each job evaluation is assigned with a grade, which

has a particular salary associated with it. This range is applicable to
all positions assigned to that grade. Every salary range associated
with a grade, has a minimum and a maximum level.

Training and Development HR team of training and development

makes a performance evaluation of all the employees and the see
where the gap occurs between actual performance and desired
performance. Then training is designed for area which needs to be
improved. On the job and off the job both the trainings are given
according to the need of the employee.

There are two types of training given to the employees. The types
and their durations are given below: For Local Trainings (maximum 1
week) For Foreign Trainings (maximum 2-4 weeks), they use all
training methods e.g. audio/visual, practical, workshop,
presentations, hands-on etc.

Job Design The HR Department designs the jobs in which they define
how work will be performed and what task will be required in a given
job. The four phenomena of job practiced are given below: Job
enlargement: to some extent at managerial level. Job extension:
many times. Job rotation: how to some extent in Inter-department.
Job enrichment: many times.

Compensation Responsibilities of HR Department

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 Compensation Administration (designing and installing job
evaluation program, pay structure, analyzing jobs, maintaining
suitable records, wage and salary surveys of the labor market).

Health and Safety (health programs, safety programs, medical

facility).

Employee relations (wages, rates of pay, hours of work, conditions

of employment, negotiation, contract interpretation and
administration, grievance handling, allocation of overtime).

Benefits and Services (insurance programs, transportation facility,

sick leave pay plans, loan funds, yearly bonus programs along with
special bonuses for achieving high targets).

The manager of HR expressed his thoughts about the employees

who are hired by third party and are working in organization on
contractual basis, we dont want them, so we are not bound to
compensate them equally in comparison with our permanent
employees.

From our point of view, we see the organization size figures that
show there are more then 2000 employees on contractual basis.

They make more than 55% of the overall size of the organization.
Moreover, not all those employees are much satisfied because of
these criteria but they are also a big part of the organization, they
are stressed with their job because they are getting only salary, not
benefits or any other compensation tools against their work.

This thing shows that there is a lack of motivational factor among

the contractual employees which may cause increase in turnover
rate. These things increase the cost of new hiring and training of
new employees.

We observed another important point from the prospective of

Human Resource practices that in the organization the concept of

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relational return is not very satisfactory, though this matter a lot in
organizations like HP

Third setback is that they have some problems with their pay roll;
the organization size is more than 1000 employees but they have
only four executives who are working for the pay roll and on the
compensation. So there are many troubles to run the pay roll
accurately and to compensate every one fairly based on their
performance.

Conclusion
Every institution must have a clear mission & vision statement to
achieve its goals and objectives also must have a Geographic
domain to segment it target

The firms forms of pay

1 base pay

2 Merit pay/cost-of living adjustments

3 Incentives (long short)

4 Benefits (Income protection, Work/life balance, Allowances, etc.)

5 Rational Returns from work (recognition, challenging work,

opportunity to learn,

Base pay is the number one factor for attraction. This is the first thing that
management needs to look at to ensure that the remuneration package is attractive.
This means paying at the market rate unless the job or the companys reputation is
good enough to persuade people to settle for.

Benefits Package PWC is offering non-traditional benefits to help employees

balance the necessities of their professional and personal lives. such as life insurance,
healthcare coverage, paid leave, short and long term disability, retirement plan
packages increasingly focus on the specialised needs of employees.

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Effective rewards and recognition, managers need to introduce procedures for
rewarding employees more explicitly based on effort or performance. Show
appreciation by recognising employees performance. Be honest and constructive in
providing performance feedback.

Career development and opportunities ,include extending opportunities for training,

adopting, and implementing promotional policies and selecting employees who are
likely to progress to a much higher post.

The firm control labor cost when it achieve objectives such as efficiency and fairness
through
Reduce labor benefit costs
1. Reduce the possibility of key employee turnover
2. Maximize the chances of released workers returning upon recovery
3. Minimize worker distraction from the cost-reduction process
4. Restructuring of work/workload
5. Increase employee productivity
6. Reduction in force of employees with obsolete skills
7. Reduction in force of employees with unstable history of performance

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References
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www.HP.com

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