Retirement Cost:

Pension system in Bangladesh is mainly observed in government services. The pension issues are
settled according to the rules of the Public Servants (Retirement) Act of 1974. Similarly migrant
workers do not receive any pension. There is no provision of pension for private sector workers.
Gratuity is a long term financial benefit given by the employer to its employee during separation.
As per Bangladesh Labor Law 2006 gratuity is not mandatory to employers. Gratuity policy is
depends upon company's own resolution. It may be 3 years or 5 years or more. By adopting
gratuity scheme within the organization, the organization can claim tax rebate against the
gratuity fund. For that the organization has to form gratuity fund trustee board same as provident
fund scheme and should be endorsed by NBR.

In RSA Capital, after the age of 65, Employees got retirement but there is no pension plan in
RSA Capital. Employees enjoy gratuity benefit after retirement. Employees contribute 10% of
their basic in RSA Capital. Employers of the organization also contribute the same amount as the
part of retirement plan. Employees of RSA Capital get a lump sump amount after their
retirement. Employees of RSA Capital don’t think their Retirement plan is enough for them.

Training Cost:

Company’s training budget plan should be no more than 1 to 5 percent of spending on salaries
each year. Actually Training is teaching or developing in oneself or others, any skills and
knowledge that relate to specific useful competencies. Training has specific goals of improving
one's capability, capacity, productivity and performance. Employee Training Costs involves
Course Materials, Teaching and facilitator fees, Videos and workbooks, Rental fees for
equipment and facilities, License fees Videoconferencing costs, Specialized hardware costs,
Administrative costs. Some organization has fixed training budget for employees, some
organization does not have fixed training budget.

There is no fixed budget of training plan in RSA Capital. Training Program varies according to
department wise in RSA Capital. For example, Finance Department got training on IFRS and
BAS. Sometimes employees get small amount of money for attending training secession.
Industry Analysis

Retirement

After comparative analysis between RSA Capital and other financing companies in Bangladesh,
It is found that maximum private financing companies in Bangladesh don’t have any retirement
plan. They have only Gratuity plan but the gratuity rate is different from one organization to
another. Average rate of gratuity in financing industry is 12% to 15%. In RSA Capital, the rate of
contribution is 10% only. So after the Comparative analysis, it can be said that the retirement
plan is not satisfactory in RSA Capital.

16% 15%
14%
12%
10%
10%
8% RSA Capital
Industry Average
6%
4%
2%
0%
Retirement

Figure: Comparison of Retirement plan between RSA Capital and financing industry in
Bangladesh.

Training:

After comparative analysis between RSA Capital and other financing companies in Bangladesh,
It is found that maximum private financing companies in Bangladesh have a fixed training
budget. For example, Lanka Bangla Financing Companies has a fixed annual training budget of
20 Lac for employees. But in case of RSA Capital, There is no fixed training budget and does not
have a proper training plan.
 Comparative analysis of Training Budget

RSA Capital: Industry Analysis:

1) There is no fixed annual training budget
for the employees.
2) Organization does not have a proper
training plan.
1) Some Financial Organization like Lanka
Bangla Finincing Company has fixed
annual training budget for the employees.
2) Employees also get a lump sum amount
after training.

Figure: Comparison of Training budget between RSA Capital and financing industry in
Bangladesh.