comparsion of compensation stratgies of mobilink and tenelor

ACKNOWLEDGEMENTWe are very thankful to Mr. Naveed Anjum, the course instructor, who assigned such a practical project in which we compelled to apply and use all all skills to do this project successfully. We all are satisfied from our efforts devoted to the compeletion of this project.

AndTo

1. Mr.Jawad Ali

Recruitment & Compensation Officer,Mobilink

2. Mr.Mumtaz AliStaffing and Compensation AssociateMobilink, Islamabad

3. Mr. Saddat ShahCompensation OfficerTelenor, Islamabad

4. Mr. Faisal AmeenPeople Excellence OfficerTelenor, islamabd

5. Mr. Fahad JahangirPeople Support officerTelenor, Islamabd

For devoting us precious time, valuable information and kind assistance in this project, we will remember their kind efforts and saying bundle of thanks.

THANKSArif and group members

Barriers in the execution of this project

The proposal of this project was about the analyzing the compensation strategies of the

Mobilink, comparing these with the major competitor Telenor. The compensation

strategies of such organizations are very delicate and confidential. We tried all the

possible major as well as minor sources to get the access to their strategies. We are not

told the core strategies which create the edge in the market, but a general overview has

3

given. So this project finding may not be 100% accurate but we hope best for the

significance of these findings.

The next phase of this project of conducting salary survey of the telecom industry,

targeting the HR people, We are again coming with sorry to expose that no one has

granted the permission to go for salary survey. We this survey is not successful because

of the limitation and business secret policies.

4

Project out line

Table of ContentsSr. No Topics Page No.

Preface 01Introduction 02

The Compensation Strategies of the MOBILINK

INCENTIVES PLAN Individual Incentives Plan: Group Incentives Plan Organizational Incentives Special Incentives

03

03040505

Job Evaluation methods:

Point Method Ranking Methods

05

0606

Pay Packages and Employee Benefits06

Promotion Policies 08

Overview of Performance appraisal in Mobilink09

5

Studying the Compensation Strategies, policies and practices of Mobilink

Focusing onIndividual Incentives plans & Group Incentives Plans

Organizational Incentives Plans & Special Incentives Plans

Job Evaluation methods of Mobilink

Studying the Compensation Strategies, policies and practices of Competitor: Telenor

Gap Analysis

Recommendation & Conclusion

Salary Survey of HR people in telecomm Sector

Compensation Strategies of Telenor Telecom

Incentives Plans

Individual Incentives Plans Group Incentives Plan

Organizational Incentives Special Incentives

11

12131415

Job Evaluation in Telenor 15

Pay Packages and employee benefits 16

GAP Analysis

Strong & Weak Points of Mobilink

Strong and Weak points of Telenor

18

1819

Salary Survey 23

Survey Results 25

Recommendations 26

Conclusion 26

PrefaceThis project is about analysis of the compensation strategies of Mobilink

Telcomunication Pvt.Ltd. the market leader in telecomm sector and the first GSM Service

provider in the area. In this project their compensation strategies of carefully studies,

analyzed critically, explored the methods and process of job evaluation and the pay

structures of the Mobilink.

After that the same procedure is adopted for Telenor in order to conclude the best

practices among them. This is done by going for GAP analysis between the Mobilink and

Telenor compensation strategies.

6

This project really polished out compensation Mangement skills and we get aware of the

fact that needs to be kept in front while designing the HR strategies.

Hence this was a really enjoyable, learning and practical experience, very much related to

the application of the basic theoretical knowledge.

The Compensation Strategies of the MOBILINK

The Mobilink that claims of the major market shareholder in telecom industry has shown

very traditional approach towards the compensation management. The leading

organizations always try best to have a best-fit strategic approach towards the Human

Resource Management within organization but unfortunately the leading organization

like Mobilink is also use best practice approach in compensating approach. During this

research we also come to conclude that these best practice are not fully implemented in

whole soul but they are either partially implemented or just remained in name.

Lets the incentives Plan being implemented in Mobilink are:

INCENTIVES PLAN

Incentives are designed to encourage employees to achieve objectives. They are intended

to direct motivation for present and future performance, promising “ do this and we will

make it worth your while”

Incentives are generally financial but they can promise non-financial rewards such as

recognition, promotion or particularly interesting assignment.

Individual Incentives Plan:

Individual incentives plans are those that are concerned to compensate the individual

efforts that result in organizational outcomes.

In Mobilink the individual incentives plans don’t exist in any form. Although this kind of

incentives plan is only for the sales people in the form of commission on sale. But we

disagree with them because it is individual incentive plan because this is pay at risk and

where risk exists its not incentive.

7

One other form of incentives plan is that they are paying overtime to the lower

management on the hour’s basis they spent besides the duty hours.

Further discussion revealed that they used to give Departmental objectives that further

divided into level objectives and finally individual objectives, if the whole department

objectives are met and the Company performance enhanced than they pay to all

departments instead of paying right-to-right person. And if the company objectives are

not achieved and individual objectives are achieved, than in this case they don’t use to go

for incentives to individual or group etc.

Group Incentives Plan

The Mobilink prefer to team and group working. People are recognized from their

respective group or team with in organization. Like sales people, marketing team, finance

analysis team, finance allocation team, HR peoples, etc

The group incentives are based on the objectives being assigned to each team or group. If

they successfully achieved within the given constraints and also these achievement led

company performance to enhance than they will be entailed for group incentives in

following manner:

Per unit incentives

Monthly incentives

Continuous incentives

Remote areas incentives

The per-unit incentives are given mostly to the sales and production teams, the units they

produced and similarly to those the unit sold per/day or week. These per unit incentives

are not paid to individual but to the whole team.

The monthly incentives are for marketing team, Human Resource Management, and

Finance for achieving their excellent performance. The monthly incentives are mostly in

the form of a bonus salary, house rent or some other cash-based rewards, but mostly it is

in the form of a bonus salary for every member within the team.

The continuous Incentives are for those teams whose maintained and improved

performance with increasing rate for three or more than three months. These are in the

form of cash bonus, salaries and other benefits according to the impact of performance on

overall organizational achievements.

8

The remote areas where the basic facilities are limited, has little security etc like

mountains, deserts and or like FATA.

The group incentives pattern is widely spread in Mobilink and they say that we are

concentrating on group incentives because to ensure internally and externally that we are

unite and the culture is collectivism not individualism.

Organizational Incentives

The organizational performance is measured in the form or increase in Annual sales, No

of subscribers, and increase in market share.

The individual objectives are sequentially tied with the company performance. When

company succeed in achieving these objectives.

These incentives are in the form of

Upper Management: Three Gross Salary in a year

Lower management: Two gross salaries

Special Incentives

According to the Mobilink Compensation Officer, “There are very few and rare special

incentives because the group incentives and organization incentives plan are designed in

such a way that each and every individual is performing special”. But few types of

special incentives plan are:

Recognition:

If some one extra ordinary perform in sales or production department, they

various types of recognition like

1. “Man of the year” which contain certificate and some other prizes.

2. Excellence certificate

3. Placing the name and Picture in organization top performers gallery

Appreciation: the individual is appreciated personally by the General manager

either meeting personally or through call or through email etc

Special Cash Amount is given on the occasion when someone (mostly given to

HR) for attracting and hiring top performers of Competitors.

Job Evaluation methods:

Mobilink uses two methods for evaluating job in order to know the worth of the job.

9

1. Point method

2. Ranking method

The reason that Mobilink uses two methods is the importance being given to the level of

management.

Point Method

The point method is used to evaluate the middle level management. The importance is

given more to critically know each and every job worth because

The middle level is act is a bridge between upper level and lower level

management. If this level is enough strong to get the stress of the upper

management as well as to be enough competent to supervise and motivate the

lower management to work effectively.

The middle level jobs are mostly technical and coordination nature, that’s why

point method is best to know the level of competency required for each job.

In this point method besides other compensating factors more and large portion of

weighed is given to the “Technicality” and “Coordination” this two components or

factors weight-age is about 70% in all-compensable factors.

Ranking Methods

In the top level management the Mobilink is using ranking methods because these people

have higher professional profile, what the market is paying, the Mobilink tries to pay

them some higher than the market, therefore the point method seems very conflicting in

designing the pay structure. And there is a risk if point method is used result in decrease

in the current pay, so he/she may leaves.

In the lower management the ranking method is used because these jobs are mostly entry

level having the specific level of skill requirement, so all jobs at entry level are ranked

equally.

Pay Packages and Employee Benefits

Mobilink like other organization has three level of management.

Lower Management

10

Middle Management

Upper Management

The pay package and benefits are as under:

Lower management

1. Basic Pay (unknown/confidential)

2. Utilities (foods, Cell phone connection and monthly allowance)

3. Transport facilities (only for females)

4. Annual Increment

5. Subsidized rate (discount at company products)

Middle Management

1. Basic Pay (unknown/confidential)

2. House rent


4. Transport facilities

5. Annual Increment

6. Medical allowance


8. Cell phone (Blackberry)

9. Learning and growth opportunities

10. Training & Development

11. Promotions

Upper Management (Managerial)

1. Basic Pay

2. Annual Increment

3. Annual Bonus


5. Car (limited Fuel & Maintenance)


7. Cell Phone (Black berry)

11

8. Laptop

9. Learning and growth opportunities


11. Life insurance

12. Promotions


Upper Management (Directors & VP)

1. Basic Pay

2. Annual Increment

3. Annual Bonus

4. Car (unlimited Fuel & maintenance)

5. House

6. Cell phone (Blackberry +postpaid connection)

7. Laptop


9. Promotion

10. Medical Allowance

11. Life Insurance

12. International trips

13. Social clubs memberships

The annual increment is subjected to the annual performance appraisal results. Therefore

this increment varies from individual to individual working on same position in same

department or other.

Besides these package following facilities are provided

1. Effective working environment

2. Office facilities

3. Flexibility

4. Learning environment

12

Promotion Policies

The new company structure is in five layers, comprising associates, specialists, managers,

directors and chief officers------in that order starting from the bottom and working

towards the top rung of the ladder.

Until approved otherwise, it would be mandatory for the employees to spend the

following maximum period at each level before a promotion to the next level depending

upon availability of a slot:

Associate 3-4 years

Specialist 3-4 years

Manager 2-3 years

Director According to the president decision

Chiefs According to the president decision

However, employees who may not get a chance of promotion due to the non availability

of an existing slot, will be compensated by being “moved over” within the new salary

range specified by the company

Overview of Performance appraisal in Mobilink

The top management decides the company objectives for the particular session. The

objectives are translated into the departmental objectives that are further divided and sub-

divided into group and individual objectives respectively.

The individual performance is measured against the pre-defined objectives given

individually. The individual appraises self first, than the concerned supervisor appraises it

and the concerned supervisor is supervised/evaluated by other supervisor. Similarly the

manager measures the supervisor’s performance, the Directors evaluate the manager’s

performance and the Vice Presidents measure Director’s performance and Vice-

presidents are by President.

Performance Appraisal in Mobilink

13

StandardsObjectives

StandardsObjectives

StandardsObjectives

Company Objectives

Deptt: 1 Objectives Deptt: 2 Objectives Deptt: 3 Objectives

Team.2 ObjectivesTeam.1 Objectives Team.3 ObjectivesIndividual.3Individual.1 Individual.4 Individual.5Individual.2

In order to decide which individual, team and team was well performer to achieve the

company objectives in order to facilitate the process of employee compensation in term

of pay raise, increment level, incentives, training and development, a performance

appraisal process is carried out to improve the compensation system fairness.

Performance Appraisal Process in Mobilink

Mobilink Main purpose behind the above stated strategies and job evaluation and

performance appraisal is to ensure Business Excellence in order to create competitive

edge enabling Mobilink to sustain the market leader status.

14

Individual’s Performance

Self-Appraisal

Supervisor

Sr.Supervisor

Manager

Director

V.President

President

Let’s have a brief overlook to the compensation strategies of Telenor, a leading competitor and threat to Mobilink.

Compensation Strategies of Telenor Telecom

The Telenor entered the market with aggressive strategies at all level, never compromised

on quality service and positioned as self as “Better Quality at lower possible rates”

services provided in the market, succeed in capturing major market share in a very short

time. The Mobilink availing the market leader status didn’t succeed in defending it status.

All this credit goes to the Human Resource Management, which strategically aligned all

HR practices with the core Business strategies of becoming market leader. We will here

discuss only the compensation strategies of Telenor as a tool for attracting, retention and

motivation of productive employees.

The Telenor from the very first stages concentrated on the “Best fit approach” rather the

traditional and “Best Practice Approach”.

Following are the few compensation strategies because their strategies are strictly

confidential and the information provider may get lost his/her job.

Incentives Plans

The Telenor uses various incentives plan. Different packages and plan are deisgned for

different people and groups according to the nature of the job and the impact on the

organizational achievement. The commonly used plans are

Individual incentives plan

Group incentives plan

Organization incentives plan

Special incentives plan

Motivation incentives plan

Coordination Incentives plan

Let’s discuss the features of these incentives plans and the outcomes created from these

outcomes.

15

Individual Incentives Plans

In Telenor they strongly give importance to the individual performance because it is the

individual performance that enhances the group performance and ultimately

organizational performance. According to their words, if we fail to identify the individual

performance level, it will leads to the unfair compensation which will definitely result in

de-motivation and leg-pulling in the organization which is very dangerous for

organization on such stage where it has reached to the stage to take over. The individual

incentives plans are based on the successfully achievement of the individual predefined

goals and objectives. These incentives are in various forms like

Commission

Bonus pay

Cash rewards

Over-time payments

Bonus one month cell phone charges

Leaves in cash

Days off

Shift payment and unsocial hours

The commission incentive is tied with the sales performance or performance in

production and also in customer services where the individual incentive is given for

effectively treating the customer. This commission is not like a exposure of employee

more pay to risk. If an employee doesn’t succeed in meeting the target, his/her she

training needs are identified, trained accordingly and if not achieving performance

standards after that, than job rotation technique is applied in order to make employee feel

secure.

Bonus pay is granted to those individual who achieve the targets which more prominent

results. Bonus pay is the more successful tool for motivating each and every employee to

do some thing extra ordinary.

Cash rewards are also subjected to the individual performance in the group. These are

given besides the group incentives for the purpose to make differentiation between the

16

higher performer and low performer within the group but it is managed in such a way that

eliminated discrimination. These cash bonus are given when group rewards are also

granted.

One month bonus cell charges are also used as a incentives plan to recognize the

individual efforts to all the people in organization. This will act as tool for motivation.

Leave in cash and day off are those incentives plan that are mostly granted to mostly

every individual but the days off are only granted to those employee who over perform

the performance targets.

The Telenor incentives plans are not strictly tied with the company objectives

achievement, if the individual objectives are achieved within given constraints than they

are eligible for their individual incentives.

The shift incentive plans are for those people whose service is for 24/7 times, like the

customer representative officer. And unsocial hours like working on the specific festivals

like Eid, Sunday etc


Group incentives plan are mostly designed for the technical staff, engineers, sales team

and marketing teams. These group incentives plans are

Project rewards

Group rewards

Group trips


Group annual bonus

Special assignment or project provision

Special group meal

Projects rewards are for the project teams for completing the projects in the given

deadlines of time, resources and quality. These rewards are subjected to the extent of the

quality and the nature of the projects. These are huge cash bonuses for each and every

member but due to individual incentive plan a slight difference may be possible.

17

Group rewards are similar to the project rewards but its amount is lesser and it is given

frequently to the technical group, Marketing team and sales team for achieving the

monthly targets successfully. These are mostly in the form of cash rewards.

The group trips are also used a group incentive but as tool of recognition, these trips are

fully financed by the organization either national or international level. Here employees

are also paid some amount of cash to go for personal enjoyment there, like shopping,

playing etc.

Remote area incentives are those cash and facilities provision to those teams or groups

working in remote areas like mountains, FATA etc.

Group annual bonus is in the form of bonus salaries to all the member of the group for

showing extra-ordinary result crossing the boundaries of targets given. These are mostly

given to the sales groups and production teams.

Special Assignment or project provision is also a group incentive plan in the form of

career development opportunities, learning and exposure in order to be eligible for the

higher position in near future. It is also the form of recognition.

Special Meal is also a form of group incentives used as a tool of recognition the group

efforts. The group members are served with a special lunch or dinner in five stars of

seven stars Hotel.


These are those incentives granted to almost all employees when organization meets the

set objectives either financial or strategic.

These includes

Bonus pay Payments

Cash Bonus

Annual Cash Bonus

These organizational incentives in not limited to the one or two level of management but

it is subjected to all employees according to the position and pay structures because all

these incentives plans are streamed out from the pay grades.

18

Special Incentives

The Telenor has a very distinct special incentives plan in comparison to other

competitors. Following are the few effective special incentives plan not exist in Mobilink.

Golden Hellos

Golden Handcuffs

Golden Hello is that incentive plan that is used to attract the cream from the competitors.

It is either in the form of lump sum payment or in phases and some times for couple of

years depending on the nature of the people aimed to attract.

Golden handcuffs are also special individual pay incentives used to lock the best

employee within organization and eliminate the fear of being attracted or hired by other

competitor. These are also in the form of lump sum; phase, couple or years cash

payments.

Management Incentives Plan

Management incentives plan are those only for managers for achieving excellence in the

management and optimal utilization of organizational resources. These incentives may

cover two-three years gross salaries payment or a certain amount of cash payment for

fixed time period. The objective of this incentive plan is to keep the managers at optimal

level.

Job Evaluation in Telenor

The job evaluation in Telenor is used in three different ways, its usage is depend on the

nature of the job, demand of that job, supply of people, time and cost constraints.

Generally the following three methods are used from time to time:

1. Point-methods

2. Straight ranking method

3. Paired comparison

The point method is widely used method for almost all jobs evaluation for technical,

coordination, production, customer services, managerial, Directors level jobs. The entry-

level jobs, sales jobs and other level jobs, the paired comparison method is widely used

because of easiness and cost effective but when there is any thing wrong in such jobs

19

evaluation is also used for confirmation. The higher jobs like Vice-presidents and present

jobs are evaluated only through the job ranking method.

Pay Packages and employee benefits

Due to hierarchical and nature of jobs the pay packages and benefits plans also varies

from level to level and even from employee to employee.

Lower Level Management

1. Base pay

2. Annual increment

3. Variable pay

4. Individual incentives (varies due performance)


6. Transportation

7. Location charges

8. Utilities (cell phone, limited free service, food etc)

9. Subsidized products

Middle Management

1. Base pay

2. Annual increment

3. Individual incentives (varies due performance)


5. Transportation

6. Location charges

7. Utilities (cell phone, limited free service, food etc)


9. Life Insurance

10. Annual bonus

11. House allowance

12. Training and development

20

Upper Management (Managerial)

1. Base pay

2. Annual increment

3. Management Incentives


5. Location charges

6. Utilities (cell phone, free service, food etc)


8. Life Insurance

9. Annual bonus

10. House allowance

11. Training and development

12. Projects payments

13. Car (Fuel & maintenance)

14. Social club Membership

15. Annual international trips

16. Laptops

Upper Management (Directors and above)

1. Base pay

2. Annual increment

3. Annual cash bonus


5. House

6. Car (fuel & maintenance)

7. Utilities Expenses

8. International trips

9. Life Insurance

10. Social club membership

11. Two days off in a week

12. Children welfare allowance

13. Laptops

14. Cell phone and unlimited post paid connection

21

15. Limited shares option

GAP Analysis

Strong & Weak Points of Mobilink

Strong Points

The employee satisfaction level is higher in comparison to the expected range. The

Mobilink has established a competent HR department consists of 40 HR professional in

order to maximize the motivation and commitment level of the human resource.

The Mobilink has started modifying the management style from the traditional towards

modern style in which they can be able to recognize and reward individual efforts in near

future.

The continuous incentive plan has a positive impact on those employees who has

received, trying their best to sustain this incentive for longer time and also a tool for

motivation to bring up with more innovative efforts to gain this incentive that has not

received.

One other organizational incentive of “three gross salaries” compel every employees to

go for best effort impact in order to ensure the achievements of organizational goals for

the specific time period.

Weak points

Mobilink currently ignores the rewarding of individual efforts. They reward

individual efforts when the company meets the targets. If the company fails to do

so, they don’t rewards those individual who successfully achieved their individual

objectives. Here it may be possible that the objectives assigned by their respective

department are not properly aligned with the organizational goals. So here the

individual suffers on the cost of their upper management.

The reward system is not properly directed or aligned with the business

objectives; the goal here should be to bring all employees to a common point in

order to create synergy. Because they pay in comparison to the some international

company or findings survey firm.

22

The incentives plans are very narrow and limited. It needs to be extended in order

to gain the loyalty and commitment at individual, group and organizational level.

The base of individual incentives plan is very week and some time non-existing.

The middle management’s incentive is also not to the extents it is expected from

them.

The job ranking method is the widely used method in Mobilink, although point

method is also used but limited. The job ranking method doesn’t give enough

information in deciding how much should be given to the individual.

The performance evaluation is also traditional; no proper performance appraisal

feedback is given to the employees at the end. The training needs assessment is

not tied with the performance results at lower management level.

The performance evaluation is linear process where is such dynamic organizations

leaner performance evaluation is not effective because the employee’s

performance is measured from multifaceted directions.

Mobilink don’t go for the implication of “Best-fit approach” but it is stuck with

the initial and old ”Best practice approach”. And one thing more the “Best-

Practice approach” is also used partially.

Mobilink strategic approach is focused on to sustain or maintain the current

market share in this tough competition, where is such scenario it is unwise to go

for such approach. It should be focused on growth improvement.

Strong and Weak points of Telenor

Telenor has proved itself as real dynamic a firm who has adapted itself in the tough

competition, got major market share from the existing company Mobilink in a very short

time. The Telenor has large number of strong points and few weak points.

Strong points

Telenor focused on individual performance, have made the reward system in such

a way to recognize the efforts and effectively remunerate these. Therefore the

incentives plans are very diverse and up-to-date.

23

The arrangement is very concise in such manner that it even rewards the marginal

higher efforts of individual within the teams or groups.

The special incentives like “Golden Hellos” and “Golden handcuffs’ are very

efficient in given them the best professional from the market and also the ability

to retain them for life time.

The performance of individual is even rewarded if the organization fails to

achieve its goal. Once the individual succeed in its targets their rewards are due.

The Telenor has specific incentives plan for every level and for every nature. The

Management incentives plan is one of the example. This incentive doesn’t exist in

Mobilink.

The job evaluation method widely used is Point-method. And that’s the reason the

employee satisfaction in Telenor is more than Mobilink because the pay structure

created from the point method are very concise and reflects the efforts granted.

The pay packages and incentives plans are attractive and gives more

remunerations at all level. Wide range of incentives keeps the employees

satisfied, committed, loyal and productive all the time.

It’s the outcome of compensation strategies that attracted the competent and key

professional of Mobilink, and retained them for lifetime. Here the Telenor got

competitive edge to have such professional whose have sufficient knowledge of

competitor in deciding which business strategies can result in overtake.

The performance appraisal in Telenor is multifactor and multifaceted that ensures

the proper and true evaluation of employee.

Weak Points

The employee’s interrelationship is not strong as it is in Mobilink. The culture in

Telenor is going towards isolated environment where every individual will be

concerned for its own self-interest.

There are two types of employees. Permanent and contract employees. The

Telenor approach towards the contract employee is not so much devoted as it is

for permanent employees. This may leads to the employee discrimination and the

disloyalty might be result in.

24

Their employees are not aware of the reward policies. This is some time good but

some time creates problem. The Telenor has kept confidential the compensation

strategies even from the employees.

Gap Analysis (comparison) of Mobilink and Telenor Compensation Strategies

Incentives Plan Mobilink Telenor Favorable

Individual Incentive Plan

Commission

Bonus pay

Cash rewards

Over-time payments

Bonus one month cell phone charges

Leaves in cash

Days off

Shift payment and unsocial hours

75%

5%

10%

99%

10%

75%

50%

20%

50%

80%

65%

99%

60%

75%

50%

70%

Telenor

Telenor

Telenor

Both

Telenor

Both

Both

Telenor


Per unit incentives

Monthly incentives

Continuous incentives

Project rewards

Group cash rewards

Group trips


Group annual bonus

Special assignment or project provision

Special group meal

80%

60%

50%

40%

30%

80%

90%

50%

30%

70%

10%

5%

5%

80%

55%

90%

99%

75%

75%

80%

Mobilink

Mobilink

Mobilink

Telenor

Telenor

Both

Both

Telenor

Telenor

Both

Incentives Plan Mobilink Telenor Favorable


Bonus pay Payments 99% 70% Mobilink

25

Cash Bonus

Annual Cash Bonus

50%

60%

85%

65%

Telenor

Same

Special Incentives

Golden Hellos

Golden Handcuffs

Recognition

Appreciation

30%

65%

90%

90%

85%

70%

65%

65%

Telenor

Telenor

Mobilink

Mobilink

Salary Survey

26

This comparison has been drawn in order to magnify the impact or magnitude of each

incentive in both organizations. The Telenor has advantage over Mobilink in

Individual incentives. The reason is that Telenor is paying more attention towards the

recognition of individual efforts. Its main concern is that if individual efforts are

maximized, the organization will grow that why it has a very distinct Individual

incentive plan from the Mobilink.

In all other organizational, group and special incentives both organization are almost

similar in practices. But due to individual incentives it has attracted competent people

from Mobilink.

Further clarity will be seen from the salary survey. This is mentioned in next chapter.

In order to know the market rate of Human resource in the telecom industry, we

conducted a salary survey in the following telecom organizations

Mobilink

Telenor

Ufone

Warid

Zong

Neither of the above organization provided sufficient information to make successful this

survey, because of their information confidentiality issues. However the Mobilink and

Telenor has showed very little response to our salary survey questionnaire. The

questionnaire is attached at the end of this report.

The findings of the salary survey in both organizations are as under.

Total number of respondents:

Telenor: 06

Mobilink: 04

Let’s summarize the questions and responses

Respondent Job Position in the Management hierarchy

Upper Middle Lower

Telenor 2 4

Mobilink 3 1

Respondent’s satisfaction from his/her efforts

Yes No Don’t Know

Telenor 4 1 2

Mobilink 4 0 0

Provision of case bonus

Yes No

Telenor 3 3

Mobilink 4 0

Frequency of cash bonuses

Once Twice Three times Irregular

27

Telenor 4 1 0 1

Mobilink 4 0 0 0

This bonus based on…?

Individual

performance

Company Performance 1st and 2nd Pre-decided Don’t know

Telenor 5 0 0 0 1

Mobilink 0 1 2 0 1

Other non-cash benefits

Medical House Allowance Mobile allowance Insurance Food Transport Pension

Telenor 6 4 6 6 0 3 0

Mobilink 4 2 4 3 0 4 0

Organization paying level in comparison to market

Above Middle Below

Telenor 1 4 1

Mobilink 2 2 0

Pay fairness

Yes No Don’t know Justified

Telenor 1 3 2 0

Mobilink 2 0 0 2

If employee were the employer than he/she will pay employees

Same More Less

Telenor 1 5 0

Mobilink 4 0 0

Other facilities

Comfortable working

environment

Office facilities Flexibility Development opportunities Learning environment

Telenor 5 6 6 4 5

Mobilink 4 2 3 3 3

Comments:

This salary survey indicates that Mobilink has a more stable Human resource system. The

employee satisfaction is higher as comparison to the Telenor. The reason may be that in

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Telenor, they are only paying attention towards the individual environment where in

Mobilink the team work culture is more prevailing, It’s may be also concluded from this

survey that the financial rewards is not the only tool for employee satisfaction and

commitment. A combination of intrinsic and extrinsic reward package should be deigned

accordingly keeping the limitation of organizational policies and resources.

Mobilink’s employees have the confidence in Mobilink pay rate that it is externally and

internally equitable while in Telenor where a large number of employees are on contract

based, are paid differently.

Recommendations

Mobilink should not tied the individual reward with the company performance but

the rewards of individual is should be based on individual efforts and results.

Mobilink pay structures grow more seniority. This trend may cause de-

productivity in the new innovators and highly active competent people. Therefore

Mobilink should minimize this rate and increase the rate of pay for performance.

The performance appraisal process of Mobilink should be more concise in the

way where the employee evaluation continues for the whole year. It should

replace the linear performance appraisal with the multi-directional performance

appraisal. This appraisal process may be set like

o Planning work and setting expectations

o Monitoring and measuring performance

o Developing the capacity to perform

o Periodically rating performance in a summary fashion

o Recognizing and rewarding good performance

Practicing good performance management requires proficiency in certain

competencies. Competencies are observable, measurable Patterns of skills,

knowledge, abilities, behaviors and other Characteristics that an individual needs

to perform work roles or Occupational functions successfully. Performance

management Competencies that all supervisors (and team leaders) at Mobilink

Should develop and demonstrate include

The individual incentives plans should be extended up to the competitor scale in

order to lock the exit of the talent from the company. And the individual goal

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setting should be aligned properly with the organizational goal, in order to make

effective decision in giving rewards for individual goal achievements.

The job evaluation method should be set according to the culture and need of the

market. The old fashion of ranking method practice should be reduced by

replacing it with the point-method. This will introduce a culture of performance.

Mobilink should increase the special incentives plan and incentives for the lower

management as well. Because the lower management carry out the directions of

upper management accordingly.

Conclusion

It is concluded from this report findings that Mobilink is no doubt the market leader in

HR systems but it needs upgrading, renovation and improvement in order to effective

defend the competitors aggressive strategic actions. Mobilink is loosing its market share

as well as key employees to Telenor because Telenor is providing attractive packages.

The Mobilink should start moving towards the culture of pay for performance instead of

paying for tenure of skills. This can be achieved by implementation of effective

performance management and compensation system. Mobilink shouldn’t believe on its

current workforce but also seek for the best people in the market, because if these best

people are hired by the competitors, this would result in further hardship to defend.

Therefore proper performance appraisal, feedback and rewards should be ensured.

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comparsion of compensation stratgies of mobilink and tenelor

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