A Report on Salary and Benefits Package of

Acknowledgement

All praise to Allah, the almighty, and the merciful. Without his blessing and endorsement this report would not have been accomplished. The successful completion of this report might never be possible in time without the help of some persons. First of all we want to pay our gratitude to our honorable Sir Mr. Neaz Ahmed, for teaching us the basics of HRM in a very reflective manner. We highly appreciate the cordial help from Mr. Fahmid Rahman Swaikat, who happens to be an alumni of AIUB, currently working at Grameenphone in the complaint management division. He introduced us with HR executive Mr. Khaled Shariar who helped us a lot to get the real image of HR activities of Grameenphone and guided us to a short visit around their working premises. And finally we are thankful to our family members, our classmates and other peers group for giving us valuable and non-fabricated information about Grameenphone HR policy from their current or prior experience as an employee.

Grameenphone
Grameenphone started its journey with the Village Phone program: a pioneering initiative to empower rural women of Bangladesh. The name Grameenphone translates to Rural phone. Starting its operations on March 26, 1997, the Independence Day of Bangladesh, Grameenphone has come a long way. Grameenphone pioneered the then breakthrough initiative of mobile to mobile telephony and became the first and only operator to cover 98% of the countrys people with network Since its inception. Grameenphone has built the largest cellular network in the country with over 13,000 base stations in more than 7000 locations. Presently, nearly 98 percent of the country's population is within the coverage area of the Grameenphone network. Grameenphone has always been a pioneer in introducing new products and services in the local market. GP was the first company to introduce GSM technology in Bangladesh when it launched its services in March 1997. Grameenphone was also the first operator to introduce the pre-paid service in September 1999. It established the first 24-hour Call Center, introduced value-added services such as VMS, SMS, fax and data transmission services, international roaming service, WAP, SMS-based push-pull services, EDGE, personal ring back tone and many other products and services. The entire Grameenphone network is also EDGE/GPRS enabled, allowing access to high-speed Internet and data services from anywhere within the coverage area. There are currently near 2.6 million EDGE/GPRS users in the Grameenphone network. Today, Grameenphone is the leading telecommunications service provider in Bangladesh with more than 35 million subscribers as of October 2011.

HR Policy and Practice

Grameenphone is the pioneer in the field of human resource management, employee care and competence development in Bangladesh. Grameenphone is currently employing approximately 5000 people of which 84 % is under 31years old. The employees are spread out in six office zones throughout the country, with Dhaka being the largest with 3561 employees. Most of the staff has university backgrounds within fields such as management, marketing, economics, finance and engineering. In 1997 the number of expatriates working in the company was close to 90. Today however, there are only five foreigners employed on a regular basis, and another five on timelimited contracts. The government demands that a ratio of 1:20, expatriates to locals be kept. The figures are therefore not only within the government requirement, but significantly so. The situation is supposedly a lot different in many of grameenphones competitor companies. The turnover rate in 2006 was 8%, and a preliminary 4% so far for 2007. The number of resignations peaked in 2005 when new operators penetrated the market and offered higher salaries to Grameenphone employees, but this was still relatively low. One could argue that low turnover rates are a good indicator of a healthy work environment.

Company HR Policy: Selection &Recruitment Motivation. Training. Employee benefits Code of Conduct Performance appraisal

Selection & Recruitment:

Source of recruitment: External sources:

Management consultant Advertisement Management institute Recommendation Deputation personnel

Selection process: Job analysis Initial screening Application bank Test Interview Reference check Medical final and job offer

Motivation:

A friendly work environment A huge brand image Flexible working hours Defined work assignment State of the art technology Most beautiful Workplace Salary, Promotion, Bonus, incentives and monetary or nonmonetary rewards Outbound meeting and conference with recreation

Employee Training
It is a set of planned activities that the organization will have their employees complete in order to increase their job knowledge and skills and to have them get accustomed to the attitudes and social atmosphere of the company. There are typical steps that go into a training program. These are outlined below. 1. Conduct Needs Assessment 2. Implement Training Methods 3. Training Evaluation

Employee benefits:
In addition to a relatively high salary, grameenphone employees are offered several benefits. In an annual survey comparing 10 competitors and similar companies in other industries, Grameenphone identifies the wage distribution and bases its own wage levels on those in the upper quartile. This yields a minimum monthly salary of 28000 BDT (408 USD). The national average income for earners in non-agricultural sectors is 6000 BDT (Bangladesh Bureau of Statistics 2005). As a part of the employee policy, grameenphone is also providing monthly education grants to children of all employees until the age of 21. This grant is a fixed monthly sum for each child. Furthermore, these children can also apply for financial support to attend university. In compliance with the local legislation grameenphone is building a pension fund for its employees. In addition to the required minimum level, grameenphone also invests in provident funds. 10 % of the employees salary is paid on a monthly basis into the fund. Participation in the fund is voluntary. Following five years of employment, the company invests, in addition to the 10% provided by the employee, the same amount into the fund for each individual. All regular employees are also entitled to a gratuity payment paid at the end of his/her service with the company and this is calculated based on the length of service.

All employees are entitled and covered by health and medical insurance. This also applies to family members. This coverage has also been known to apply to out-source. An example of this is

that several drivers hurt in traffic accidents have been sent to Thailand and Singapore for medical treatment.

Every month Payroll & Pension team of People Excellence & Rewards ensures disbursement of salary into individual salary accounts. Various allowances & deductions from stakeholders throughout the company are integrated into the payroll system every month. Salary disbursement dates are as follows:

Regular / Temporary Employees: 25th of each month or before Part time Employees :Within 7 working days of the following month

Monthly Guaranteed Cash Components Bonus: Variable Allowances:

Basic Salary House Rent Medical Transport LFA Festival Bonus (50% of Basic) (Tk. 2,000 for all Bands) (Tk. 2,000 for Band: D-F) (6% of Basic) (2 Basic / Year)

Performance Bonus Band A-C Band D : 4 Gross : 3 Gross

Band E: 4 Basic Over Time On Call Shift Allowance National Holiday Allowance

Long Term Benefits:

Provident Fund Upon completion of the Probation, employees are eligible to become member of Provident Fund. Every month, employees contribute 10% of their basic to the provident fund and the Company makes equal contribution to the fund. Employees are entitle for this amount at the time of separation

Gratuity Fund Eligibility criteria for Gratuity Fund is as follows: Years of Service 5 years 5 years 6 months Over 5 years 6 monthsupto 10 Years More than 10 years

Gratuity @ 1 month's basic/for each year @ 1.5 month's basic/for each year @ 2 month's basic/for each year

In addition to a relatively high salary, grameenphone employees are offered several benefits. In an annual survey comparing 10 competitors and similar companies in other industries, Grameenphone identifies the wage distribution and bases its own wage levels on those in the upper quartile. This yields a minimum monthly salary of 28000 BDT (408 USD).

Code of Conduct:
Upon entering the company, all employees must sign a code of conduct. The document presents guidelines for proper conduct and ethical behavior.

Performance appraisal:
Grameenphone follows different types of method to evaluate employee performance and accordingly provide incentives and perk as well as promotion and pay rise.

HRM Department of Grameenphone: Our Observation

As a leading telecom operator grameenphone has been practicing high levels of Human Resource Management since its inception. As far as its HRM practice is concerned, it has been successful in

building a positive image among job seekers and corporate world. It provides its employees excellent working environment and shows its earnestness in achieving maximum employee satisfaction. Grameenphone is a consistent performer in almost all HRM functions such as HR Planning, recruitment, training and employee development, health and safety issues, performance appraisal system, salary and employee benefits etc. However, it is not all glowing for HRM department of grameenphone. There prevails intense employee dissatisfaction concerning career progression specially among entry level employees. Employees in bottom and mid level remain uncertain about their promotion due to unclear HR department stance on this issue. On the other hand, job security is less for the entry level employees of grameenphone compared to other leading companies.