Compensation

Management in
IDC BD Pvt. Ltd

Submitted To: Neaz Ahmed

Faculty: Compensation Benefit

American International University Submitted By: Group 7

Bangladesh
Faisal Jakaria 19-91095-1
Mahmud Ashfaque 19-91401-3
Tashnim Sharmin 20-91691-1
Mehejabin Azad Meghla 19-91419-3

Submission Date: 14 Nov 2020

 Table of Content

Topics Page No:

Introductory statement: Key Person 02

Company Profile 02

Number of Employee & HRD 03

HR Function In Company 04

Compensation System 05

Observation 08

Appendix 10

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Key Person we met: Our report’s organization is International Distribution Company
Bangladesh Pvt. Ltd. We talked with one of HR person from the company. His name is Faisal
Jakaria, currently working in role of HR generalist in Executive position. Mr. Jakaria joined IDC
BD Pvt. Ltd. at August 2019. He completed his Undergrad & PGD in Human Resource Management
and pursuing his Post-graduation in HR major from AIUB.
Mr. Jakaria is report to Head of Human Resource & Supervise 1 HR-officer & 2 Intern directly. He
is mainly responsible for all kind of HR operation coordination & executing HR service for
Employee.

Company Profile: International Distribution Company Bangladesh (Pvt) Limited,

popularly known as IDC Bangladesh, started its journey back in 2013 with a passionate
small team of 26 people and a single principal (Ferrero). Within the last 7 years, IDC has
progressed astoundingly with a driven team of 800+ professionals, putting effort to drive
a sustainable business for the 10 international principals. Today, IDC is an admired and
one of the leading distribution companies in Bangladesh. IDC assists different businesses
to attain desired business growth by exploring and expanding to new or existing markets
with customer focused and result orientated approach. IDC delivers quality results with
integrity and transparency, which makes IDC a trusted partner for companies who are
doing business in Bangladesh with and by IDC.

Highlight of 7 years:
 Nationwide distribution and sales coverage
 800+ employees
 Distributing more than 500 SKUs to the Bangladeshi consumers
 65,000+ outlet coverage in General Trade
 Exemplary presence in Modern Trade (230+ outlets of 32 accounts)
 Direct business relation with more than 2,000 top wholesaler nationally
 Strong presence in B2B, HoReCa and Ecommerce Channel
 30%+ compound annual growth rate (CAGR)
 100,000 sq. ft. warehouse capacity. Warehouses both in Dhaka & Chittagong.
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Vision :
To become the most admired sales and distribution company in the country by helping
world class brands to realize its full potential with Bangladeshi trade and consumers.

Total Number of Employee & HRD: IDC is a ‘People First’ organization. When
employee join at IDC, they become not only an employee, but also a crucial part of IDC
family which stretches all over the country. IDC BD Pvt. Ltd run their operation over whole
Bangladesh. There are 850+ Employee all over in Bangladesh including National Sales
Manager, Zonal Sales Manager, Area Sales Manager, Territory Sales Officer, Sales Officer
& Merchandiser. Corporate office employees are also Included in this number. Most of
them are from Sales Department. IDC ensures growth for employees by offering them
challenging roles. Each employee has a defined career path for future progression. There
is the breakdown of employee.

Human Resource Department: IDC believes in equal work opportunity irrespective of

age, gender, race & religion. There are 5-person team in HR Department. Mr. Ahmed
Raihan Ameen is holding the role of Head of HR title. One Executive & one HR Officer
directly report to him. At IDC Human Resource department is new comparing the
company. Though IDC started their journey back in 2013, But HRD start their operation
in 2019. In these 2 years HRD bring this company in a shape, they are starting to
implementing the HR policies. It’s tough to start a new culture or new policy in company,
But IDC HRD is pretty much successful on that case. Specially Recruitment, Leave,
Attendance, Training, Compensation & Benefit. Few Functions are yet to develop.
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Suppose, Organizational Development, Performance Appraisal, Functional Reward,
Industrial relation ETC. Currently IDC HR team is working with Human Resource
Information System. They are working with total 2800 Employees Personal File. These
project is Almost near to end. It will make the HRD stronger.

HR Function in the company:

1. Human resource planning

The first function of HR is all about knowing the future needs of the organization. What kind of
people does the organization need, and how many? Knowing this will shape the recruitment,
selection, performance management, learning and development, and all other HR functions. IDC
practice Proper Human Resource Planning.

2. Recruitment and selection

The second HR function involves attracting people to work for the organization and selecting the
best candidates. Attracting people usually starts with an employee brand. Being an attractive
employer has plenty of advantages – just as it is the other way around. With a strong employer
brand and the right sourcing strategies, you’re already halfway there. Once candidates apply,
selection is an HR instrument to pick the best qualified and highest-potential candidates.
Technological developments in recruitment have gone very fast and as a result, there are different
types of recruitment tools for each part of your recruitment funnel.

3. Performance management
Performance management is essential in ensuring that workers stay productive and engaged.
Good performance management involves good leadership, clear goal-setting, and open feedback.

Performance management tools include the annual performance review, in which the employee
is reviewed by his/her manager. It also includes 360-degree feedback tools in which peers,
managers, subordinates, and sometimes even customers review the employee’s performance.
These kinds of tools can be very helpful in providing feedback.

4. Career planning
HR is career planning, guidance, and development for employees, together also referred to as
career pathing.
Showing employees how their personal ambition can align with the future of the company helps
to engage and retain them. For the organization, there are the benefits of better succession
planning, higher productivity, and a stronger employer brand.

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 5. Rewards

Rewarding employees for their work is a function that is impossible to miss. Rewards include
salary but also growth and career opportunities, status, recognition, a good organizational culture,
and a satisfying work-life balance.

The total rewards framework shows that rewards are more than just money. They can also be
relational and psychological outcomes. For example, fantastic colleagues and meaningful work
are also rewarding to employees. The monetary reward of the job consists of financial rewards
and other (secondary) benefits.

6. Health and safety

HR plays an important role in creating and implementing health and safety regulations. Making
these regulations part of the company culture is one of the main functions of HR.

7. Administrative responsibilities

The final function of HR is its administrative responsibility. These include personnel procedures
and Human Resource Information Systems.
Personnel procedures involve the handling of promotions, relocations, discipline, performance
improvement, illness, regulations, unwanted intimacies, bullying, and so on.
For each of these situations, policies and procedures need to be developed and followed to
successfully comply with the requests, or overcome these challenges.

Compensation & Benefit of IDC: Employee benefits typically refers to retirement plans, health
life insurance, life insurance, vacation, employee stock ownership plans, etc. Benefits are
increasingly expensive for businesses to provide to employees, so the range and options of
benefits are changing rapidly to include, for example, flexible benefit plans. Benefits are forms of
value, other than payment, that are provided to the employee in return for their contribution to
the organization, that is, for doing their job. Some benefits, such as unemployment and worker's
compensation, are federally required. Worker's compensation is really a worker's right, rather
than a benefit.
IDC BD Pvt. Ltd Offer their employees Various type of compensation component package apart
then the salary. Here is the fraction of Compensation Package:

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 Fixed Income / Gross Salary: Is monthly allowances that do not vary from month to month.
Examples include fixed Medical or Housing allowances.

a. Basic Salary: Basic salary is the amount paid to an employee before any extras are
added or taken off, such as reductions because of salary sacrifice schemes or an increase
due to overtime or a bonus. Allowances, such as internet for home-based workers or
contributions to phone usage, would also be added to the basic salary.

b. House Rent: House Rent Allowance, or commonly known as HRA, is an amount which
is paid by employers to employees as a part of their salaries. This is basically done as it
helps provide employees with tax benefits towards the payment for accommodations
every year. The decision of how much HRA needs to be paid to the employee is made by
the employer on the basis of a number of different criteria such as the salary and the city
of residence.

c. Medical Allowance: Medical allowance is a fixed amount paid by some employers to

their employees on a monthly basis. If medical allowance is received by the employee,
such reimbursement can't be claimed as a deduction from taxable income.

d. Transport Allowance: Conveyance allowance, also referred to as Transport Allowance,

is a type of allowance offered by a company or employer to the employees to compensate
for their travel from their place of residence to the workplace
Above Mentioned Four Component is provided by the company, all these component all together
is Knowing as Gross Salary or Take Home Salary.

Picture: Gross Salary Breakdown in Appointment Letter

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Variable Income: Variable pay is the portion of sales compensation determined by employee
performance. When employees hit their goals (aka quota), variable pay is provided as a type of
bonus, incentive pay, or commission. Base salary, on the other hand, is fixed and paid out
regardless of employees meeting their goals. Below mentioned Variable income is provided by
IDC.

a. Over time: IDC provided Overtime of Warehouse & Store employees. Its Basically Double
of the Normal Payment rate. Overtime is the amount of time someone works beyond
normal working hours. The term is also used for the pay received for this time
b. Night Allowance: If an y employees work at night during the normal day or pressure
task day, they get a good amount of money. Which is known as Night allowance.
c. Holiday Allowance: Employees are generally entitled to 11 days of festival holidays with
pay. The holidays are determined by the employer. IDC pay Holiday Allowance If any
worker work in holiday.
d. TADA: IDC pay TADA for Field worker. Its paying as per day basis. According to their
grade, Designation, Area TADA Vary. There are 3 categories for TADA. Head Quarter, Ex
Headquarter, Outstation. Employee claim TADA after their Spending.
e. Sales Incentive: Money or a reward offered to salespeople for selling a particular
amount of goods or services. IDC provide Sales incentives for sales/field employees.

Benefits: IDC BD Pvt. Ltd provide employee few others monetary & non-monetary benefits.
Which helps to motivate employee to make the job done. These benefits are vary department to
department, Designation to Designation, Unit to Unit There is some glimpse of Benefit.
a. Subsidies Lunch: IDC provide 70% of Subsidies Lunch.

b. Mobile Bill: According to grade & designation Employee get Post Paid Mobile Sim Card

c. Health Insurance: IDC start Health Insurance benefit for their eligible employee. Employee get
OPD, Medicine, Doctor Visit, Investigation Charge, Operation Charge, Hospital fee under this
benefit. Not only the employee but their family members are also eligible for these benefit.

d. Life Insurance: If unfortunately any of our employee die in the tenure of his service, His/Her
family will get insurance amount. There are two types of insurance life insurance benefit. Normal
& Accident.

e. Festival Bonus: IDC’s Permanent employee are eligible for 2 festival bonus during the year. Mainly
in Eid ul fitr & Eid al Azha. Bonus in equal to their basic salary amount.

Grade & Steps: There are two types of employees in IDC. Those are Management &
Non Management employee. These employee’s designation are in Bellow.

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Non-Management Employee:
Sales Officer, Sr. Sales Officer, Merchandiser, Beauty Advisor, Brand Promoter, Logistics Coordinator,
Delivery Man, Driver, Cleaner.

These Employee Have total four grade: Those are, Grade A, Grade B, Grade C, Grade D.

Management Cade Employee: Employee Who are directly involve in Execution & decision making
Process the are considered as Management Cadre employee. They fall under few Grade. Those are:

Grade Designation
Grade III Executive, Sr. Executive & Equivalent
Grade IV Asst. Manager & Equivalent
Grade V Manager & Equivalent
Grade VI National Sales Manager & Equivalent

Observation about HRD.

IDC provides a sound work environment to the employees which enables them to meet their
regular responsibilities and motivates them go beyond their capabilities and perform extra miles.

Policies are quite important part of a company what can be an advantage or it can be a severe
damage if we start to ignore it. Numbers are not a big matter; the maintenance is all that matters.
Comparing to all the famous or work-oriented companies or even only with the distribution
companies, can led us to take a different move for a better position in upcoming days and later
out of the border. Polices are surely mandatory for a company as well as for the employers plus
all level workers also. Inside the company, it helps in developing all the workers’ responsibilities,
regular duties, provide respect to any particular employee or co-worker.

How a HR department can be developed in a company like IDC is described below:

• To make a HR department what type of research I have to do and firstly, I would chose
to make strategic plan which is obvious because mission goals and strategic plan is a great guide
to focus on time, talent and resources to run a successful entrepreneur. Mission plan means what
is the mission and vision of the company and how deeply the meaning is understood by the
employers and employees. In strategic plan, to illustrate, when key stakeholder come together
then, they cheers and energizes other participants to think creatively and innovative possibilities
are envisioned.

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• In IDC It skills and development process is up-to-date and fast so they are doing very well
by organizing company related documents and benefits administration. Here we can see
employee related different documents and then enrollments, status changes, personal
information updating etc. At this point, IDC got their own software to manage and handle each
and every information and updates.
• Complete integration with payroll means financial and accounting software which is really
strong in IDC because, IDC works with numbers and they got many different mathematical terms
to use where Finance and accounting is common. Their payroll system is indeed high.

• Applicant tracking and resume management can be easier by using software not manually
and from this year IDC is working on it. Resume management should be done manually and also
managed by software. It is hard to find and manage it so this function should be prepared as
soon as possible.
• Performance development plans can be recorded in central system and also based on the
position of the employees. However, IDC make plans for their future targets what is profitable
for them. Their planning management and employee relationship is very deep so the way they
are making is up to the mark.

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 Appendix

App. 01: Organogram

App. 02: Business Card of Interviewee:

Name: Faisal Jakaria
Designation: Executive
Department: Human Resource

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