Grameenphone Limited is the market leader in the mobile telecommunication industry of Bangladesh. Vision is simple - We're here to help. Grameenphone`s Main Products Consumer Prepaid includes Shohoj, Bondho, Aapon, Badhon. Business Solution includes BS Postpaid, BS prepaid, Ekota. Consumer Post-paid includes X-Plore , postpaid. Scenario of Market Share Movement Operator/Month GP Robi Axiata Banglalink Citycell Teletalk Airtel Jul-10 43% 19% 28% 3% 2% 5% Aug-10 44% 18% 28% 3% 2% 5% Sep-10 44% 18% 28% 3% 2% 5% Oct-10 43% 18% 28% 3% 2% 6% Nov-10 43% 18% 28% 3% 2% 6% Dec-10 44% 18% 28% 3% 2% 6%
Compensation System Sl No Name of Employees Salary Statement Present Total Present Salary Days Days
Salary Structure Leave Consider ed Total Gross Salary Basic Payme nt HR Allowance s Convene Allowance s Medical Allowance s Cost of Living Adjustme nt Overtim e Premiu m Meri t Pay Safet y Pay
Net Deduction
Net Salary
Sign of Employer. Total Remuneration Paid for the nine months ended September 30 , 2010 (Taka)
Strengths & Weaknesses of GP on Compensation System
Grameenphone Limited
Tanuza Nath (ID-201)
Strengths GrameenPhone has the best compensation structure. It offers an outstanding total benefits package. Effective compensation planning, ensures financial soundness. GP reviews the pay scale that helps to retain skilled and experienced employees. GP provides various compensation facilities and leaves & holidays. GP becomes the market leader through their attractive compensation packages. To keep the quality of service, GP is strict to follow its compensation standard.
Weaknesses Grameenphone has experienced with the involuntary and voluntary turnover. Employee compensation system has been seen that sales representative often work only for monetary benefits and do not really look inside the requirements of customers. Most of the clashes are happened among different levels for a big gap in their compensation policies. In GP the rate of absenteeism is about 3% to 4% as employees get small amount of benefits when entering into the company.
Possible Measures to Improve Compensation System
The compensation system of GP needs to be more clearly defined and uniform. Therefore it will be possible to apply this system to all the levels of the organization as a general system. The system should be simple and flexible so that every employee would be able to compute his own compensation receivable. It should be easy to implement, should not result in abuse of workers. It should raise the morale, efficiency and cooperation among the workers. It, being just and fair would provide more satisfaction to the workers. A strong compensation system automatically solves disputes between the employee & management. The Compensation system of GP should follow the management principle of equal pay in any kind of situations. The sound compensation system is hallmark of organizations success and prosperity. So it is essential to provide competitive pay scale to employees and should be renewed after a specific time.
Prime Bank Limited (PBL)
Md. Sanowar Hossain(ID-202)
Name of the Organization Prime Bank Limited (PBL) is one of the new Bangladeshi private banks, which was incorporated on 17th April 1995 with Tk. 1000 million of authorized capital & Tk. 100 million of paid up capital by a group of successful entrepreneurs. Competitive Status
PBL`s Main Services
The major services of PBL are deposit scheme, loan, consumer credit scheme (ccs), lease financing, house building loan scheme, hire purchase, advance against share and other services Compensation System The compensation system of PBL is based on the following dataSalaries Basic Pay House Rent Allowance Conveyanc e Allowance Medical Allowance Utility Allowance Entertainm ent Allowance Leave Fare Concessio n
Personal pay
Group insurance.
Provident fund
Bonuses
Accommo dations
Maternity Benefit
Medical Benefits
Pay for leave
Prime Bank Limited (PBL)
Md. Sanowar Hossain(ID-202)
Strengths & Weaknesses of PBL on Compensation System
Strengths This first private sector Bank offers employment for fresh graduates. It offers handsome basic pay. Offering performance as well as festival bonuses. Its working environment is comfortable. PBL`s employees get maternity as well as mobile benefits. Providing high quality services in different areas of banking operations. It has acquired confidence and trust of the public .
Weaknesses Slow progress in its new system. It has accommodation problem for employees. It has also transportation problem. Its increase in salary progress is low. Its Product & services are lower than other bank, for example, ATM card.
Possible Measures to Improve Compensation System
To make compensation system successful, Checks and balances are necessary for Bank need to make a substantial investment getting success. of time, money, and effort. A compensation system needs sufficient Performance evaluation serves as the funding to provide high-performing employees foundation of a compensation system. with meaningful pay increases and bonuses. Communication, training, and transparency Compensation systems should be evaluated are essential elements of a good pay for regularly and modified when necessary. compensation system.
BEXIMCO Name of the Organization
Mahfuza Khanam(ID-203)
Competitive Status
Beximco Pharmaceuticals Ltd (BPL) is a leading manufacturer of pharmaceutical formulations and Active Pharmaceutical Ingredients (APIs) in Bangladesh. Their vision is We are building a better tomorrow. The main products of Beximco Pharmaceuticals are tablets, capsules, dry syrup, powder for suspension, creams, ointments, suppositories, metered dose nasal sprays, intravenous fluids, and metered dose inhalers. Except Beximco Pharma, other leading companies are Square Pharma, Incepta Pharmaceuticals. Navana Pharma Ltd., Opsonin Chemical Industries Ltd.,Aventis Pharma Ltd. Etc. Among them Square Pharma is the market leader at this moment. BPL follows Square Pharma at the 2nd position. The analysis of the two companys financial data shows that for the year 2009-2010 gross profit of BPL was 1,629,514,837(BDT) and Square Pharma was 3,401,781,806 (BDT).
Compensation System
Beximco Pharmaceuticals follows two payment components. These are: Direct financial payments-It includes wages, salaries, incentives, commissions, and bonuses. Direct payments-It includes employer-paid insurance and vacations
Executive Compensation of Beximco Pharmaceuticals
Designation Chief Executive Officer Chief Financing Officer General Manager Manager
Salary Range 17,50,000Tk 3,00,000 Tk 1,50,000-2,00,000Tk 50,000-1,00,000 Tk
BEXIMCO
Mahfuza Khanam(ID-203)
Strengths & Weaknesses of Beximco Pharmaceuticals on Compensation System Strengths
Employee has empowerment capability to bring Innovation. The compensation system is tied to the companys strategic goals. Effective and fair supervision is followed so that each employee gets equal compensation benefits. Beximco Pharma always maintains adequate funds to compensate employees properly.
Weaknesses Beximco Pharma does not maintain flexible relationship between managers and subordinates. It maintains excessive government & international regulations which affect compensation system negatively. It does not review the pay scale on regular basis that helps to retain skilled and experienced employees
Possible Measures to improve Compensation System
Beximco Pharmaceuticals needs to maintain a good and friendly relationship between managers and subordinates. The company should review the pay scale on regular basis. The company should arrange effective training programs for supervisors to supervise the whole compensation system properly. Employers should take the employees opinion with importance to implement the compensation system effectively. The compensation system should be evaluated on an ongoing basis to ensure that it will accomplish the desired objectives in a fair and cost-effective manner.
Name of the Organization IBBL is the first interest free Islamic Shariah based Islamic commercial bank in Bangladesh also in South East Asia.
IBBL
Asifa Hossain(ID204)
Compensation Structure Designation Chairman Managing Director Deputy Managing Director Senior Executive Vice President Salary Confidential
Competitive Status IBBL has an average compensation rate in comparison to the other private bank in the banking industry of Bangladesh. The highest and lowest salary of IBBL is 15,000tk for the Trainee Officer and more than 200,000tk for the Chairman. This range is in between of the lowest and highest paying rate in the banking industry of Bangladesh.
Executive Vice President Senior Vice President Vice President Senior Assistant Vice President Assistant Vice President First Assistant Vice President Senior principal Officer Executive Officer Principal Officer Senior Officer Management Trainee Officer Junior Officer Assistant Officer Trainee Assistant
IBBL
Asifa Hossain(ID204)
Strengths & Weaknesses on Compensation System
Strengths
Weaknesses
It has Islamic values in Difference is high in the different compensation system. levels of employment. Organization controls the Lower pay structure than other compensation system. Islamic banks. It provides advanced training Less non-financial benefits are facilities. provided.
Possible Measures to Improve Compensation System
A pay model should be developed which will be served as a framework for examining current pay system. A total compensation strategy should be developed through assessing the total compensation implication, mapping the total compensation strategy and implementing and reassessing. IBBL should introduce more attractive nonfinancial benefits to its employees. IBBL should develop a pay structure that is more supportive to the organization structure. IBBL should study its pay relationships with its competitors.
Name of the Organization ACI Limited is committed to the pursuit of excellence through world-class products, Competitive Status ACI`s Main Products Pharmaceuticals includes tablet, capsule, dry powder, , ointment, ophthalmic and inject able.
ACI Limited
Md. Rajib Hossain(ID-205)
innovative processes and empowered employees to provide the highest level of satisfaction to its customers.
Consumers Brands and community products includes aerosol, mosquito coil, savlon etc. Agribusiness includes crops protection chemicals, seeds supplies hybrid rice.
Compensation System Salary Structure Base compensation Variable compens ation Shortterm incentive plan Equity plan Longterm performa nce plan Benefits Total compensation and benefits
Some other factors that influence the salary structure are salary ranges, job/position evaluation, annual PA and salary change, annual salary increase, setting pay for new employees, premium pay, salary dispute, pay time.
ACI Limited
Md. Rajib Hossain(ID-205)
Strengths & Weaknesses of ACI Limited on Compensation System
Strengths ACI Limited has a standard compensation structure. This system supports a diverse and performanceoriented culture that allows ACI Limited to reward people who perform well . Performance-based compensation policy is applied to all associates of ACI Limited and it helps to align the objectives of associates with the interests of shareholders. It is more competitive with world-class companies and industry peers.
Weaknesses It has high rate of income inequality exist between different levels of employees. Some times personal preference plays vital role for the increment of an employees. These cause increase the rate of turnover and dissatisfaction in the work place.
Possible Measures to Improve Compensation System
The compensation system of ACI needs to be revised so that all the employees get a standard rate of compensation. The system should follow an equal employment opportunity for all the employees. ACI should try to reduce the income inequality among the various levels of employees. Serving as a basis for establishing salaries in the ACI Limited pay-for-performance system.
The sound compensation system is helpful for maintaining a good relationship between management and employees.
Jamuna Bank Limited (JBL)
Md. Ismail Hossan(ID-206)
Name of the Organization
Jamuna Bank Limited (JBL) is a Banking Company registered under the Companies Act, 1994 with its Head Office at Chini Shilpa Bhaban (2nd, 3rd & 8th Floor), 3, Dilkusha C/A, Dhaka-1000. The Bank started its operation from 3rd June 2001.
Competitive Status Jamuna Bank`s Main Services
General products include cash, remittance, clearing accounts deposit scheme ,loan. Credit includes import ,export ,foreign remittance. Foreign exchange
Compensation System
Salary Structure Direct Compensation Conveyance Leave travel allowance Medical Reimbursem ent Bonus Special Allowance
Basic salary
House Rent Allowance
Indirect Compensation Leave Policy Hospitali zation Insuranc e Overtime Policy Retireme nt Benefits Flexible Timings Holiday Homes
Jamuna Bank Limited (JBL)
Md. Ismail Hossan(ID-206)
Strengths & Weakness of JBL on Compensation System
Strengths JBLs per employee productivity is higher than the other competitors. Its lay-off rate is lower than other banks.
Weakness Its pay and reward system competitive in the market. is less
Possible Measures to Improve Compensation System
It should increase their pay level compared to their competitors. It needs to change the system of percentage of increase in the pay system. To improve in its pay and reward system policies and packages. They should bring a policy of descending percentage increase in the organization.
Name of the Organization Competitive Status
Nittanando Paul(ID-207)
The Daily Kaler Kantho [Voice of Age] is one of the best newspaper in Bangladesh.
The main product of the Daily Kaler Kantho is newspaper. It also provides magazine and special feature with the daily newspaper for the customer. The popular name of the magazine is Rajnithi which provides in Tuesday with the Daily Kaler Kantho.
Main Product of the Daily Kaler Kantho
Scenario of Market
200000 150000 100000 50000 0
Compensation System Momentary Allowances Basic pay Bonus Salary Advance Provident Fund
Salary Structure Non Momentary Allowances House rent Telephone allowance Daily allowance Sick Leave Car allowance s and fuel Transport facilities
Total Salary Chief Editor 1,65,600 Senior Editor 38,700 Junior Editor 17,400 Chief Reporter 38,700 Senior Reporter 17,400 Junior Reporter 12,700 Area Reporter Basis on report
Nittanando Paul(ID-207)
Strengths & Weaknesses of the Dailly Kaler Kantho on Compensation System
Strengths The compensation system of it is higher than other popular newspaper office. The fringe benefit systems supposed to develop a climate for healthy employer-employee relationship, minimize excessive labor turnover costs and provide a feeling of individual security. Other non-financial benefits are provided such as recreational and cultural services, clubs, cash assistance. Some employers also provide education, transport facilities and conveyance allowances. A lot of high qualified reporters are gathered here for high level of compensation.
Weaknesses Maintaining organizational health on a regular basis is one of key ingredients for achieving corporate success. But there is no good idea about health of any employees. The expectation level is very high which can dissatisfy the personnel of the firm.
Possible Measures to Improve Compensation System
A total compensation strategy should be developed through assessing the total compensation implication, mapping the total compensation strategy and implementing and reassessing.
It will be possible for it to retain the best talent if it provides them adequate compensation thereby stopping them from switching over to another job.
Prime Bank Ltd. Name of the Organization
Prime Bank Ltd The slogan of PBL is A bank with a
Umma Tamima Nuur (ID-208)
Competitive Status
difference.
Major Services of PBL
The major services are short term, medium term, long term, overdrafts, advances ,non-funded facilities ,letter of credit (L/C) ,letter of guarantee (L/G).
Vision of PBL To be the best Private Commercial Bank in Bangladesh in terms of efficiency, capital adequacy, asset quality, sound management and profitability having strong liquidity.
Profile of PBL Prime Bank Ltd. is operating as a scheduled bank under the banking license issued by Bangladesh Bank (BB), the Central Bank of the country on April 17, 1995.
Compensation System-Pay & Reward
Prime Bank Ltd.
Umma Tamima Nuur (ID-208)
Prime Bank Limited is committed to formulate a performance based reward policy which recognizes the contribution of each of the employees and links to the market competitive pay. General Policy The Bank operates a job evaluated salary structure to ensure that employees are placed in a salary range that relates accurately ,first, the job they are filling in terms of its technical demands and responsibilities in relationship to other jobs in the Bank. Second a fixed pay for the holder of the post.
Salary Structure PBL s salary package consists the following segments (major)Basic Salary: This is paid at fixed rates for different grades. House Rent Subsidy: This is paid at fixed rates for different grades. Medical Allowance: This is paid at rates fixed for different grades. Conveyance Facility: This is paid at rates fixed for different grades.
Strength & Weakness of PBL on Compensation System
Strength: Its employees get regular bonus and incentives. Weakness: Its pay scale is seniority based.
Possible Measures to Improve Compensation System
The Compensation system of PBL should follow the management principle of equal pay in any kind of situations. It should introduce more attractive nonfinancial benefits to its employees.
Name of the Organization Competitive Status
Main Services
Mercantile Bank Limited
Shamima Nasrin(ID-209)
Mercantile Bank Limited has started its operation on June 2, 1999 as a new commercial bank to provide efficient banking services and to contribute socioeconomic development Bangladesh
The main services are current deposit account(CD A/C), savings bank account (SB A/C), fixed deposit account(FDR A/C) , education loan, any purpose loan, rural development scheme, car loan, sme loan etc.
Compensation Position in the Market
Compensation System
The major competitors of this bank are AB Bank, Dhaka Bank, Trust Bank, Exim Bank etc. Among the banks Mercantile Bank is the market leader for providing compensation. Monetary Rewards Non Monetary Rewards Car Loan (It is given according to designation and length of service)
Basic Salary (tk. 11,000.00 to tk.123,000.00 monthly )
House Rent Allowance (tk. 5,000.00 to tk. 22,000.005 monthly)
Conveyance Allowance (tk.2,000.00 monthly ) Utility Charges (tk. 1,750.00 to tk. 10,500.00 monthly) Leave Fare Allowance (Tk. 5,000.00 monthly) Incentives (10 % of profit is distributed to employees every year) Fringe Benefit ( After every two years employees are given Tk. 50,000.00 as furniture allowance) Festival Allowance ( It provided equal to base pay.)
House Building Loan (It is given according to designation and length of service) Personal Loan (It is given up to 8 times of basic salary or 3, 00,000.00 which one is lower.) Car Facility (Ts is provided from the designation Assistant Vice President up to the designation Managing Director. )
Mercantile Bank Limited
Shamima Nasrin(ID-209)
Strengths & Weaknesses of Mercantile Bank Limited on Compensation System
Strengths The bank provides furniture allowance as fringe benefit which is exceptional in banking market so it is satisfactory for employees. Employees are provided all the house related facilities like - house rent allowance, house maintenance allowance ,house building loan. It provides leave fare allowance yearly with which employees can go for a leave . The bank provides incentives and fringe benefits with which employees are happy.
Weaknesses In case of personal loan the lower one between 8 times of basic salary and 3 lakh is provided as personal loan. But most of the time 3 lakh becomes the lower one so less loan facility. Its pay differential is not proportional and for this reason employees of some levels are dissatisfied. There is low number of levels in the organizational Structure so the promotion opportunities for employees are low.
Possible Measures to Improve Compensation System
The bank can implement a yearly reward system for the best performance of employees throughout the year. It can make the compensation structure simple, understandable and competitive in the market. It should also align the compensation package with changing goals of the bank. It should review the compensation strategy annually to cope with market changes. It can increase the base pay for employees along with other rewards.
Name of the Organization
Eastern Bank Limited
Md. Iftearul Islam(ID-210)
Eastern Bank Limited completes 19 years of service excellence and starts of a new journey today with a promise to enriching people in the society they operate. Eastern Bank Limited formulated from Bank of Credit & Commerce International in 1992. Eastern Bank Ltd. has been recognized as a Superbrand for the period 2009-2011
Competitive Status Eastern Bank Limited has many liability and asset products where we can find the following departmental wise products; Consumer Products: It includes saving and current account, EBL confidence, EBL secure DPS, EBL Repeat, Jibandhara loan, fast cash, auto loan, home loan, EBL utshab loan etc. SME Products: It includes EBL agrim, EBL uddog, EBL mukti, EBL banijjo, EBL shubodha, EBL puji, EBL asha, EBL uddam etc. Corporate products: It includes regular credit products, structured finance products, trade service products, project finance unit, syndicate financing service, international division, cash management solutions.
Following is a competitive analysis of EBL and other comparative private Banks operating in Bangladesh. Sl No. 1 2 3 4
Banks Eastern Bank Limited Dhaka Bank Dutch-Bangla bank AB Bank
Net Profit After Tax in BDT
1120.14 892.89 1130.49 619.04
EPS 52.9 2.49 56.52 25.90
Turnover Q2, 2011 (Million)
1567.33 990.9 2206.47 1675.73
Paid-Up Capital (Million)
4527.0 3590.0 2000.0 3686.0
Note: Information is taken from DSE website.
Eastern Bank Limited
Md. Iftearul Islam(ID-210)
Strengths & Weakness of EBL on Compensation System
Strengths EBLs per employee productivity is higher than the other competitors. Layoff rate of EBL is lower than other banks.
Weakness Pay and reward system is less competitive in the market which causes shifting of senior executives in the multinational banks operating in Bangladesh which offer them with higher pay system and benefits.
Possible Measures to Improve Compensation System
EBL is a well established and managed bank in Bangladesh but yet it has to improve in its pay and reward system policies and packages. With the increase of the price of living as CODA policy of EBL dictates increase in the cost of living will also increase the salary package. This year whether other banks increase their pay level, EBL is not change their pay level yet which can make dissatisfaction in the mind of the employees and also increase the laying off rate in the EBL.
Name of the Organization
United Commercial Bank Ltd
Mohsin Ahmed(ID211)
United Commercial Bank Ltd (UCBL) has in its Management a combination of highly skilled and eminent bankers of the country of varied experience and expertise successfully led by Mr. M. Shahjahan Bhuiyan
Competitive Status The main produces of UCBL are UCB DPS Plus , SMS Banking , Credit card, One Stop Service, One Stop Service, Time Deposit Scheme, Monthly Savings Scheme, Deposit Insurance Scheme, Travelers Cheques,RFCD, ( Resident Foreign Currency Deposit Account ), Export Finance, Working Capital Finance, Loan Syndication, NFCD ( Non Resident Foreign Currency Deposit Account ).
UCBL`s Main Products
Scenario of Market
Salary Structure
Compensation System Momentary Allowances Basic Salary Provident Fund Bonuses Accommodation Utilities Allowances Mobile Telephone Non Momentary Allowances
Maternity Leave Special Leave Hajj Leave Special Leave
Medical Benefits for the Executive Staff Car Purchase Scheme
United Commercial Bank Ltd
Mohsin Ahmed(ID211)
Strengths & Weaknesses of the UCBL on Compensation System
Strengths The Company's Provident Fund is a funded scheme. All confirmed and permanent employees are entitled to be members of the Provident Fund. The bank compensates the cost of authorized medical treatments in Bangladesh including hospitalization, surgical and childbirth subject to the conditions mentioned here. The Bank on the basis of requirements and availability provides accommodation to UCBL`s Top Executives at their own established facilities in Dhaka city. All Permanent Executives of the Bank are entitled to various types of Leaves that are calculated based on calendar year and prorated from the date of joining the Bank's service for the first year.
Weaknesses Top Executives at their own established facilities in Dhaka city. Outside the Dhaka city, the Bank provides expenses for the accommodation. But mid level and lower level of employees may be upset for want of car service. Most of the facilities is for top level of employees, lower level of employees may think it is not fear to them. So the turn over may be increased.
Possible Measures to Improve Compensation System
It needs to develop a scientific compensation system that automatically solves disputes between the employees & management. It needs to identify individual development needs, desires, and plans.
Ending Point
Good compensation does not make for good employees. Rather, good employees make good compensation possible!
