Employee Performance and Compensation in 2020

Employee Performance and Compensation

Introduction

In the business environment, term employee performance management refers to the alignment of the organisational objectives with the employees’ skills, measures, requirements and development plan. It is the fund foundation of the performance excellence.

The employee performance management contains a specific expectation from the each employee in the organisation. This system is quite helpful to increase the overall performance of the firm. At the same time, salary compensation determines the monetary reward paid to the employees in against of the service efforts of the employees.

The salary compensation includes the salary, wage, bonus, incentive and extra benefits. In regard of this, there is different in the Salary bench marking and executive recruitment at the global and local level.

In the growth of a business organisation the role of its human resource is vital. People in the organisation as the employee help to achieve the organisational goal and objectives.

The all business activities are done by the employees due to this, it is essential for an organisation to develop and implement the effective and employees’ favourable policies. It is also helpful for the organisation to retain the employee motivated (AlBattat and Som, 2013).

In regard of this, the main aim of this proposal is to analyse Employee Performance and Compensation in the SSC. For this proposal three well known companies are selected including SIEMENS, EY and IBM.

This proposal includes a comparison in terms of employee performance and compensation. Along with this, advantage and disadvantage of the employee performance and compensation are included in this proposal. Furthermore, this proposal also provides recommendation.

Employee Performance and Compensation at Global Salary Scale

EY (Ernst & Young)

EY (Ernst & Young) is London based multinational firms that provide the professional services. EY is fourth largest accounting a firm that provides its services overall world.

The company has a numbers of branches overall worlds but all branches are separate legal entities in individual countries. The company is providing employment to 231000 persons overall in its 700 branches in 150 countries. EY offers taxation, financial audit, consulting and advisory services to its clients. EY has completed the lots of mergers in its history.

In the history of EY, the first partnership was found in 1849 between England as Harding & Pullein. The current name of the company came from the merger between Ernst & Whinney and Arthur Young in 1989. The company is known for the services of quality and company follow the same business and financial strategy in the overall world.

EY established its business in America in the financial year 2006 and in 2010, EY has greatly developed its business in the Asian countries.  In the context of the corporate social responsibility, the name of EY is well known. In this, the company focuses on the main four including education, environment sustainability, entrepreneurship and community engagement.

In the context of EY, it is found that the ratio of the male and female employee is 74% and 26% in the given order. In this, it is also found that employees in EY have different work experience in the terms of time period in the company.

Employee Performance and Compensation

The above table shows that 11% employees in EY have only less than one year experience. In the company, the majority of the employees that have 1-4 years experiences. In means that 43% employees have 1-4 years work experiences. Furthermore, it is also found that 33% employees in the company are those who have 5-9 year experience.

The ratio of the employees who have 10-19 years experience is 13%. At the same time, it is also indentified that there is only 1% employee who have only 20 years and more experience. Hence, it can be said turnover rate is high and company needs to hire employee (Davidson, et. Al. 2010).

The figure shows that the average salary of management consultant EY is £60,220. The minimum salary of the management consultant is £31K and the maximum salary is £119K. Furthermore, it is found that average salary of senior auditor and auditor is £41156 and £31493.

At the same time, it is identified that the maximum salary of the senior auditor and auditor is £94K and £35K. The figure also shows that average salary of accountant, associate auditor, auditor manager and executive assistant is £47917, £23100, £49799 and £36174.

In the same concern of this, maximum salary of accountant, associate auditor, auditor manager and executive assistant £60k, £28k, £55k and £42k in the given order (Gerhart and Fang 2014).

In the context of the EY, it is found that company pays £12.4 as the hourly rate by the industry. This amount of salary is paid for 2 profits on the accounting, auditing and tax services.

The above figure depicts that EY is providing sufficient bonus to the employees. In regard of this, it is found that the average bonus of management consultant, auditing manager, and auditor is £1250, £1500 and £200 respectively.

It also depicts that maximum bonus is provided £6000k to management consultant, auditing manager, and auditor Khan, A. H. and Aleem, M. (2014). Along with this, the above figure also shows that associate auditor, accounting coordinator, chartered accountant and senior manager auditor achieves £2075, £305.21, £6000 and £1700.

On the basis of above figure, it is identified that EY provides different kinds of benefit to the employees. In this, it is found that EY provides pension plan, cell phone facilities, and flexible time facilities. It is helpful for the company to be motivated employees. Along with this, the company also provides paid holidays, paid sick leave, company car/automobile and beverage facilities to employees (Kucherov and Zavyalova, 2012).

IBM (International Business Machines Corporation)

In the current environment, each one is aware about the name of the IBM because the product and service of the company are well known in the industry. However the full name of the company is International Business Machines Corporation.

It is an American based company that it headquartered in New York, United States. It was established in the year 1911 by Charles Ranlett Flint. Its initially name was Computing-Tabulating-Recording Company that was renamed in the financial year 1924 as International Business Machines.

Now, the IBM is operating in 170 countries. IBM is involved in the computer hardware and software business. In this, company produces the different kind of hardware parts and also develops the software. It allows offers consulting and hosting services in the areas of the computer technology.

In the computer technology, IBM is a leading research organisation. The company has introduced a number of the innovations in its business industry. IBM is also known as the name of Big Blue. IBM provides employment to more than 400000 peoples in its overall branches.

The recent history of the company shows that company has been become one of the world’s largest computer companies and systems integrators.

On the basis of above table and graph, it is found that in IBM, the ratio of male and female employee is 78% and 22%. The company hires the various kinds of skills and degree holder employees according to requirement of the employees (Levy, et. al. 2010).

In this, it is also identified that there 18% employees those have 1-4 years experience. In additionally, 30% employees have 5-9 years experience in IBM and 29% employees have 10-19 years work experience.

The above table depicts that there are different salary range in IBM. In this, it is found that the salary of the senior programmer analyst is $62730 – $96952. Even though, the salary of the solution architect is $137935 which is high compared to senior programmer analyst (Maguire, 2014).

At the same time, it also found that the salary of the senior technical consultant and computer programmer are $128531 and $61000. Furthermore, it is also identified that salary of the software engineer is around $100000.

On the basis of above figure, it can be said that IBM also focus on the fair pay policy. According to IBM report 2017, the company pay $40.95 per hour to senior programmer analyst. But, at the same time, per hour rate for software developer is $35.00 that is less than senior programmer analyst (Maria, 2010).

The above figure is helpful to understand the bonus compensation for IBM’s employees. In this, it is identified that the company paid $12000 and $10000 as the bonus to the senior programmer analyst and solution architect respectively.

But, the provided bonus amount for IT consultant and IT specialist ($1526 and $6650) are less than compared to technical project manager and senior technical consultant (Norton, 2014). The amount of bonus that provided to technical project manager and senior technical consultant are $15000 and $10500.

Siemens

Siemens is a German based company which headquartered in Berlin. It is one of the largest manufacturing companies in the Europe and its branches are in overall world.

The business activities of Siemens group are in the different industry such as, Energy, Healthcare and Infrastructure. In the healthcare industry, the company manufactures the qualitative medical diagnostics equipments that contribute 12 percent in the overall sales of the company. It is also second profitable product portfolio of the company after the industrial automation division.

In its overall branches, there are 362000 employees that are for different works requirements. In the financial year 2015, the revenue of the company was found around €75.6 billion according to company’s annual report.

The initial name of the company was Siemens & Halske that was founded in 1847 by Werner von Siemens and Johann Georg Halske. Siemens is also operating business in the t electrical engineering and electronics areas.

In these areas, company also has significant market share. With the integration of all business units and market segment, it is one of the largest companies in the world.

The above figure shows that the ratio of the male and female employees in Siemens is 80% and 20%. In the context of work experience, it is found that there are different employees on the basis of the time period experience (Onzono, 2011).

In this, there are only 7% employees that have less than 1 year experience. But, at the same time, number of employees are high those have 1-4 years and 5-9 years experience. In this, it is found that there are 29% and 22% employees those have 1-4 years and 5-9 year experience. But, the majority of 10-19 years experience in the company.

These kinds of employees are 38% in Siemens. However, percentage of the employee those have 20 years more experience are less with the 3%.

Siemens provides the attractive salary to the employees. The above figure shows that the average salary of the software engineer is €53500 in Siemens. On the other hand, the average salary of the software architect and mechanical engineer is €50838 and €60000 and it is also providing at the maximum level.

In the context of the software developed and technical specialist, the average and maximum salaries of them are €48000 and €75000. At the same time, the figure also depicts that average salary or maximum salary of marketing director and financial controller are €108000 and €64000 (Phillips, 2012).

The above figure also shows that Siemens provides €1000 to software engineer as the bonus. On the other hand, the provided bonus to the marketing director is more compared to software engineer (Prince, 2012). The company provided €5500 as the bonus to the marketing director.

The above figure draws that Siemens also provides the some other benefits to the employees to be motivated them. In this context, it is found that the company provides the cell phone facilities and pension plan to the employees.

Employee Performance and Compensation at Local Salary Scale

Infosys

Infosys is one of the leading software and consulting firm of India. The operation activities of the company are existing overall world. Infosys was established in 1981 and now company has its branches around 45 countries. It is a well known technology company that also provides different kinds of services to its customers.

In the all branches of Infosys, there are 198000 employees. The company was started with the capital of $250 and now the net worth of the company is $10.4 billion. At the same time, the market capitalisation of the company is $34.50 billion. In the history of the company, it is found that company has faced some issues regarding the organisational changes and competition.

The starting of the Infosys happened with the seven engineers. In this, N. R. Narayana Murthy was head of the team and remaining were members.

The company started its journey from Pune and its first client was Signs up. In 1993, Infosys introduced Employee Stock Options (ESOP) program. After this, in 1996, Infosys Foundation was established and company opened its branches in UK, Toronto and Mangalore etc.

Mainly, the company provides outsourcing, business consulting and information technology service. It is second biggest Indian IT Company after TCS.

From above figure, it can be said the number of the female employees is less than compared to the male employees. In this, it is identified that there are 19% females employees Infosys as comparison of male 81%.

The above graph depicts that in Infosys, 3% employees have less than one year experience. At the same time, there are 48% employees those have of 1-4 years work experience.

This group keeps majority in the company because employees in other experience group are less than this group (Shalin, 2014). Furthermore, it is also found that in the experience group 5-9 years and 10-19, there are 29% and 19% employees.

In the same concern of this, it is analysed that there are only 1% employees those have more than 20 years experience.

On the basis of above figure, it can be found that there are different job profits in Infosys. Along with this, the average salaries for those job profits are also different.

In this, it is also identified that the average salary of the technical analyst and senior system engineer are Rs 606167 and Rs 424678. Likewise, it is also found that average salary of the system engineer and Test Engineer are Rs 338344 and Rs 398277 in the given order. By the help of the above figure, it is also found that salaries of the IT lead and senior software are high compared to past job profit.

In Infosys, SAP consultant is also taking the effective salary (Kramar and Syed, 2012). In the last year, the company provided Rs 788566 to the SAP consultant.

Infosys is also famous to provide the attractive bonus to the employees. Through the above figure, it is identified that the company provides Rs 39762 bonus to the technology analyst.

But, at the same time, it is also found that the provided amounts to senior system engineer and system engineer, IT are less compared to other profiles that are Rs 1660 and Rs 1005. SAP consultant in Infosys gets good bonus compared other job profiles.

Infosys provided Rs 72950 as the bonus to the Sap consultant (Machado and Davim, 2013). At the same time, it is also recognised that amount of bonus for Test analyst and Test Engineer are Rs 36174 and Rs 1021. The company also provides bonus for 22 job profit of IT consultant as Rs 67407.

The salary bench marking of Infosys depicts that company provides the significant benefits its employees. It helps the company to be motivated employees that is also effective to enhance employees and overall company’s performance. The above figure shows that the company provides casual dress to employees.

In additionally, in the workplace, the company also established gym, health club and gaming Zone that is helpful for the companies to keep the employees happier and stress less (Mathis, et. al, 2016). Employees of the Infosys are also facilitated by the cell phone benefit.

The management team and human resource always remain involved in the improvement the skills and ability of the employees. For this, management develops and implements education, training, tuition, certification and reimbursement strategies.

In the context of the future of the employees, it is found that company provides the insurance and pension plan to the employees. Simultaneously, there is also a facility of the flexible tine or schedule for the employees and they can also work from home (Torrington, 2014).

Tata Motors

Tata Motors limited is a largest Asian multination automotive manufacturing company. It is the part of Tata Group that contains the various business units overall world. Typically, the major products of the company are car, truck, coaches, vans, buses, construction equipments and sport cars.

The company has several manufacturing plants in the overall world including India, Argentina, Africa, UK, Thailand etc. At the same time, the company also has research centres in these countries and other countries. The car brand such as Jaguar and Land Rover are the brand of Tata Motors.

Tata motor also has bus-manufacturing joint venture with Marcopolo S.A. In the context of the construction-equipment manufacturing, it has joint venture with Hitachi. The company was found in 1945 and it headquartered in Mumbai, India. In the financial year 2016, the total revenue of the company was recorded $2.697 trillion.

The subsidiaries companies of Tata Motors are Jaguar Land Rover, Tata Daewoo and Tata Hispano. The current strength of the company in the context of the employee is 60000. The company has around $42 billion turnover and till now company has sold 9 Million vehicles. The car of Tata Motors can be found in more than 175 countries in the world.

 The above figure shows that the number of the female employee is very less company male employees. In this, it is identified that the ratio of female and male employee are 8% and 92%. At the same time, it is also found that employees in Tata Motor belong from the different age groups.

There are 6% employees in the both work experience group less than one year and more than 20 years. At the same time, it is also found that in the work experience group such as 1-4 years, 4-9 years and 10-19 year, there are 28%, 28% and 31% employees respectively (Armstrong and Taylor, 2014) .

 The above figure shows that Tata Motors provides Rs 500833 and Rs 881635 average salary to the mechanical engineer and operational engineer. The design Engineer and sales manager get Rs 507189 and Rs718642 as the average salary in the Tata Motors. Furthermore, it is identified that the purchasing manager gets highest average salary compared to other job profiles (Brewster and Hegewisch, 2017).

In the context of the bonus strategy, it is found that company has attractive bonus strategy. It provides highest bonus to the quality manager as the amount Rs 125000. But, at the same time, it is found that mechanical engineer and design manager get lowest bonus as Rs 30000 and Rs 26000 respectively (Beardwell and Thompson, 2014).

At the same time, it is also found that Tata Motor gas effective benefits strategies for its employees. In regard of this, the above figure posits that company provides cell phone, paid sick leave and paid holidays its employees as the extra benefits. In additionally, the company also provides the car facilities, educational, training and relocation expenses facilities to the employees in Asia (Frenkel, et. al. 2013).

Thomsons CPA & Co.

Thomsons CPA & Co. is a professional accounting firm which is a registered (CPA) certified public accountants practice unit.  It provides statutory audit services for Hong Kong companies and various variety of agreed- upon procedures engagement services.

It provides accounting, payroll and other services; preparing the accounting records like financial statements, accounting vouchers, budget forecasting statement, payable accounts and treasury accounts.

It’s an experienced company which provides company formation services like offshore companies formation, Samoa company formation, Cayman Islands company formation, Representative Offices set-up etc.

It has an expertise team who has enough experience to handle the clients from various jurisdictions. The annual company maintenance and the company formation cost of HK Company are comparatively low when compared to overseas Thomsonscpa (2017).

This company is a tax service provider company, it also provides a variety of HK tax services like company tax compliance services, individual tax planning, salaries tax compliance services, expatriate tax planning, offshore tax claims, field audit cases services, etc.

It provides financial due and tax diligence, the review of audit report as well the internal audit and risk management services to Australia for immigration application. Overseas and HK limited companies formation are utilized to defend the interests of the shareholders. It helps to achieve the various goals like tax planning, etc.

The services of the company include:

Assessment of the internal control system

Company Secretary Service

Tax planning Service

Special Audit Engagements

Consultancy

Audit and Assurance

The HK Company formation is the most beneficial vehicle that is used to safeguard the interests of the owners of the company. The HK owners of the company are not needed to bear huge deficit even when the HK Company goes to liquidate.

The above figure shows salary of the various employees of Thomsons CPA & Co. In the company, there are different job profiles where employees are performing their duties. In this, it is found that Thomsons CPA & Co provides 360-456K to the internal auditor.

At the same time, the salary of the financial analyst is 312-420K. In compared of them, junior business analyst and AP supervision get less salary (Frenkel, et al. 2015).

The above figure shows that salary of junior business analyst and AP supervision are 276-440k and 288-400k respectively. Moreover, it is also identified that the company provides 264k-442k to management accountant as the salary.

In Thomsons CPA & Co, the current salary of the senior accountant and financial account are 312-429K and 240-338k in the given order (Jia, et al. 2014). In additionally, it is also identified that salary of the assistant accountant is only 180-300k.

Likewise, for the job profile of billing specialist and account clerk , average salary of the employee are 162-276K and 150-200K respectively. Instead of this, the company also provides the some other benefits to the employees including incentive, annual bonus, cell phone, cab facilities, pension plan, insurance and medical facilities etc (Shaw, et. al, 2013).

Advantages and Disadvantages of the Employee Performance and Compensation

From above study, it is found that there are a number of differences are presented between the employee performance and compensation at the global and local level. In this, it is identified that companies of SSC are providing high salary to their employees.

On the other hand, it is found that companies of local level or Asia based providing low salary and bonus benefits to the employees. It is helpful for these companies to recruit and retain the skilled and talented employees in the firm (Stone, 2013).

In order to retain the employees for long term, an attractive package with other essential benefit is effective. Along with this, it is also helpful for the company to keeps the employees more satisfied. It motivates the employees to perform better that improve the overall organisational performance.

To pay the high salary is also helpful for the company to improve organisational image among the employees. But, at the same time, it can be seen the increase in the salary responsibility and work pressure for the employees. A high paid job always associated with the high work pressure. Additionally, it also demands from the employees to do some extra working hours (Ulrich, 2013).

Recommendations

On the basis of above discussion, it can be recommend that companies that compensation policy should always able to attract employees. An organisation should always develop and implement effective salary bench marking that can motivate the employees for improving the performance.

The company should also concern on executive recruitment to retain the employees for a long time period Van den (Brink, et. al. 2013). At the same time, it is also recommended to the all companies that they should develop a specific policy for the female employee.

They should focus on increase the ratio of female employee because ratio of female employees very less compared male employees.

Conclusion

From the above discussion, it can be said that there is significant difference in the executive recruitment and salary bench marking at the global level and local level. In this, it is identified that salary of the employees those are employed in the SSC organisation high as compared to Asian organisation.

It helps the companies to be motivated the employee and retain them for long time. But, the number of female employees is less that should increase by the effective strategy and policy.

References

AlBattat, A. R. S. and Som, A. P. M. (2013) ‘Employee dissatisfaction and turnover crises in the Malaysian hospitality industry’, International Journal of Business and Management, 8(5), pp. 62.

Armstrong, M. and Taylor, S., (2014) Armstrong’s handbook of human resource management practice. UK: Kogan Page Publishers.

Beardwell, J. and Thompson, A. (2014) Human resource management: a contemporary approach. UK: Pearson Education.

Brewster, C. and Hegewisch, A. eds. (2017) Policy and Practice in European Human Resource Management: The Price Waterhouse Cranfield Survey. UK: Taylor & Francis.

Davidson, M.C., Timo, N. and Wang, Y. (2010) How much does labour turnover cost? A case study of Australian four-and five-star hotels. International Journal of Contemporary Hospitality Management, 22(4), pp. 451-466.

Ernst & Young (2017) [Online] available at: http://www.ey.com/ (Accessed: 4 August 2017).

Frenkel, S., Sanders, K. and Bednall, T. (2013) Employee perceptions of management relations as influences on job satisfaction and quit intentions. Asia pacific journal of management, 30(1), pp. 7-29.

Gerhart, B. and Fang, M. (2014) Pay for (individual) performance: Issues, claims, evidence and the role of sorting effects. Human Resource Management Review, 24(1), pp. 41-52.

IBM (2017) [Online] available at: https://www.ibm.com/in-en/  (Accessed: 4 August 2017).

Infosys (2017) [Online] available at:  https://www.infosys.com/ / (Accessed: 4 August 2017).

Jamali, D. R., El Dirani, A. M. and Harwood, I. A. (2015) Exploring human resource management roles in corporate social responsibility: the CSR‐HRM co‐creation model. Business Ethics: A European Review, 24(2), pp. 125-143.

Jia, L., Shaw, J. D., Tsui, A. S. and Park, T. Y. (2014) A Social–Structural Perspective on Employee–Organization Relationships and Team Creativity. Academy of Management Journal, 57(3), pp. 869-891.

Khan, A. H. and Aleem, M. (2014) ‘Impact of job satisfaction on employee turnover: An empirical study of Autonomous Medical Institutions of Pakistan’, Journal of International Studies, 7(1), pp. 122-132.

Kramar, R. and Syed, J. (2012) Human Resource Management in a Global Context: A Critical Approach. UK: Palgrave Macmillan.

Kucherov, D. and Zavyalova, E. (2012) HRD practices and talent management in the companies with the employer brand. European Journal of Training and Development, 36(1), pp. 86-104.

Levy, B.S., Wegman, D.H., Baron, S.L., and Sokas, R.K. (2010) Occupational and Environmental Health: Recognizing and Preventing Disease and Injury. USA: Oxford University Press.

Machado, C.F. and Davim, J.P. (2013) Human Resource Management and Technological Challenges. US: Springer Science & Business Media.

Maguire, P. (2014) HR for Small Business for Dummies – Australia–For dummies. USA: John Wiley & Sons.

Maria, I. (2010) Information Communication Technology Law, Protection and Access Rights: Global Approaches and Issues: Global Approaches and Issues. USA: Idea Group Inc (IGI).

Mathis, R.L., Jackson, JH.,Valentine and Meglich, P. (2016) Human Resource Management.  15th edn.  US:  Cengage Learning.

Norton, M.S. (2014) The Assistant Principal’s Guide: New Strategies for New Responsibilities. USA: Routledge.

Onzono, S.D. (2011) The Learning Curve: How Business Schools Are Re-inventing Education. USA: Palgrave Macmillan.

Phillips, J.J. (2012) Handbook of Training Evaluation and Measurement Methods. UK: Routledge.

Prince, S.D. (2012) Computer Vision: Models, Learning, and Inference. USA: Cambridge University Press.

Shalin, H.J. (2014) Remote Workforce Training: Effective Technologies and Strategies: Effective Technologies and Strategies. USA: IGI Global.

Shaw, J. D., Park, T. Y. and Kim, E. (2013) A resource‐based perspective on human capital losses, HRM investments, and organizational performance. Strategic Management Journal, 34(5), pp. 572-589.

Siemens (2017) [Online] available at: https://www.siemens.com/global/en/ home/company/about.html (Accessed: 4 August 2017).

Stone, R. J. (2013) Managing human resources. USA: John Wiley and Sons.

Tata Motors (2017) [Online] available at: http://www.tatamotors.com/ (Accessed: 4 August 2017).

Thomsonscpa (2017) [Online] available at: http://www.thomsonscpa.com/v3/ (Accessed: 4 August 2017).

Torrington, D. (2014) Human Resource Management. USA: Pearson Education.

Ulrich, D. (2013) Human resource champions: The next agenda for adding value and delivering results. UK: Harvard Business Press.

Van den Brink, M., Fruytier, B. and Thunnissen, M. (2013) Talent management in academia: performance systems and HRM policies. Human Resource Management Journal, 23(2), pp. 180-195.

 

 

 

 

 

 

 

Leave a Comment