Rewards Workshop

Reward Philosophy at Company Pakistan

Objective:
“Reward in Company Group shall contribute to attracting, engaging and retaining the right
talent to deliver sustainable value for shareholders in accordance with the Company way.”

Principles:
1 2 3
Reward for Support Offer Competitive
Performance Balanced Goals Total Reward
 Elements of Total Rewards

Total Rewards

1 2 3 4
Compensation Benefits Working Learning &
Environment Development
- Base Salary
- Variable Salary
+ - Health & Life
Insurance + - Culture
+ - Performance
- Relocation - Work-life Balance
- Commissions - Career Growth
- Provident Fund - Leave Policy
- Allowances - Learning &
- Gratuity - Other Facilities Development

Total Remuneration
Generic Terms Company Pakistan
Base Pay
Long-term Benefits,
Benefits 15%
+ Guaranteed Cash 9%
Base
+ Variable Pay Salary
VP 15% 54%
+ Long-term Benefits Guarantee
d Cash,
7%
+ Other Benefit
 A Shift in Reward Strategy

Current Approach New Approach

• Target market median • Competitive total reward within

compensation in peer basket top employers of Pakistan

• Holistic organizational approach, • Higher compensation for critical

limited differentiation areas

• High focus on internal equity • Stronger focus on external equity.

Internal equity remains imp

Implications of moving to the new reward strategy

• Stronger alignment with business priorities if critical domain identification is done right
• External equity may be prioritized over internal equity based on tactical interventions
• Will take a few years to reach desired state
 A Shift in Reward Strategy

Target Market Positioning

50th percentile / median of peer basket
Competitive total reward within top employers of Pakistan

Segment & Differentiate

Critical
capabilities
Global + Local

Market Market
Positioning Median
Other
Domains

Business Criticality
 Market Positioning (Confidential – for HCD Use Only)

All Market
Company ranks amongst top 14 paying companies (total reward) when compared with
150+ organizations in Pakistan.

Top Paying Companies

Source: Mercer total remuneration

survey 2017, post-survey report
 Market Positioning

Peer Basket
Salary: 45th percentile
Total Reward: 48th percentile
Market
Median

Compan Company
y Salary Total
45th %ile Reward
48th %ile

Peer Basket Determinants Peer Basket 2017-18

Direct Telecom FMCG

Talent
Comp • Jazz • Engro Foods
mvmt etition • VEON • Nestle
• Ufone • Pepsi
Top
Emplo • PTCL • Coca Cola
yers • Wi-Tribe • Unilever
IT • British American
• Microsoft Tobacco
• IBM • Phillip Morris
Peer Basket
 Segment & Differentiate

Domain based external equity as identified through salary survey 2017:

Customer CEO
PPM Care Office
IT Dev
Marketing HCD Tech
Finance Arch &
Corp IDD Perf
Channels Affairs Digital
NED
Segment Tech Ops
BI & Bus
&
Analytics Security
Products

Market
Market
Median
Standing

Segmentation through Annual Increment 2018:

• 0.5% budget dedicated for critical capability roles
• Average increment for critical roles: 9.5% vs. 6.4% for other roles
 Salary Determination Guidelines

Macro Environment Micro Environment

1. Internal Equity
1. Inflation / Price Index
2. Business Priorities
2. External Equity
3. Labor Law Requirements

Note:
✓ Internal equity is the primary consideration for day to day decision (in most domains)
✓ External equity is taken into account for annual salary reviews and for tactical interventions.
 Internal Equity

• Internal equity refers to paying fairly while comparing co-workers of similar skillset, role profiles and same
departments.

• Company uses Pay Point Methodology to determine Internal equity. Pay points refers to salary averages in
given data set.

Example: Sara is working in HCD at JG 2 level and earning Rs. 5000/-

Internal Equity Department Division Organization Position

Average Salary of JG2 4,500 5,500 6,500 5,000

111% 91% 77% 100%
Internal Equity Calculation
(Dep PP) (Div PP) (Org PP) (Position PP)
 Salary Determination Scenario #1

You need to place an offer to an external candidate for the position Sourcing Officer at
80% department pay point. What will your offer be in PKR based on the data below?

Job Monthly Salary

Employee Division Department
Group (PKR)
1 Finance Sourcing 1 40,000
2 Finance Sourcing 1 50,000
3 Finance Sourcing 3 130,000
4 Finance Sourcing 1 40,000
5 Commercial Marketing 1 50,000
6 Finance Sourcing 1 30,000
7 Finance Business Planning 1 45,000
8 Finance Sourcing 1 40,000
 Salary Determination Scenario #2

You are in the salary determination phase for an external candidate who has been
finalized for the position Manager Digital Marketing. Which factors will you consider?

Select as many options below:

Last drawn salary

Reputation of current employer

Talent assessment during interview

? Years of experience

Total reward at current employer

Internal equity

Whether he or she supports PML-N

 Salary Determination Scenario #3

A line manager has raised a concern regarding the salary of one of his/her team
members. You look into the salary details and find out that the employee was recently
advanced through the annual advancement cycle and his/her current pay point is 65%.

How will you evaluate this case?

 Salary Determination Scenario #4

An ex-employee has been selected for the position RF Planning Specialist. She is
currently working at Jazz as AM Core Planning and drawing a salary of 130K, While Jazz
offers fuel benefit at this level, it doesn’t offer Gratuity and LFA. Prior to joining Jazz 3
years ago, she was working at Company as RF Planning Specialist. Her last drawn
salary at Company was 85K and she was considered a high potential employee

Which pay point would you ideally offer based on the details below:

• 90% pay point: 81K

• 110% pay point: 99K
• 130% pay point: 117K
• 150% pay point: 135K
• 170% pay point: 153K
• 190% pay point: 171K
• Other
 Salary Determination Scenario #5

An internal employee has been selected for the position DaaS Expert as JG3. His current
role is BI & Analytics Specialist and his salary is 170K.

Which pay point would you ideally offer based on the details below:

• 80% pay point: 144K

• 90% pay point: 162K
• 94% pay point: 170K (no change)
• 100% pay point: 180K
• 110% pay point: 198K
• 120% pay point: 216K
• 130% pay point: 234K
 Salary Determination Scenario #6

An external candidate has been selected for the position Area Sales Head in Circle
South. Average salaries for S&D roles in Circle South are significantly higher than other
Circles. Which pay point is the most relevant in case?

• Organization Pay Point

• Division Pay Point
• Department Pay Point
• Position Pay Point
• Customized Analysis
 Our Total Reward Advantage

General competitive edge:

• Competitive base salaries
• Leading health insurance coverage
• Comprehensive retirement benefits – gratuity and provident fund
• Strong short-term incentives – annual bonus, 90 day sprint incentive and/or
monthly commissions
• Leading relocation benefits for internal movements
• One of the only employers with fully paid 6 month maternity leave
• Unique offerings such as Employee Share Program (ESP)
• GoBeyond model
• World class HQ
• Emphasis on diversity and inclusion

Industry specific advantages

• Health insurance coverage for parents
• Mobile credit limits
• F&F packages
 Special Circumstances

Retention & other salary adjustments

• Evaluate need based on role criticality, succession and availability of skillset in market
• Profile considerations – skillset, readiness for next level and performance
• Current salary level internally and externally. Offer at hand (if any).
• Retention package design considerations – salary vs. allowance vs. LTI
• Check budget availability

Offer negotiations
Incomplete information, bluffs and game theory are often at play during offer
negotiations. Utilize all tools at your disposal:

• Total reward comparison

• Our total reward advantage
• Line manager influence
Thank you