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INDEX

INTRODUCTION 2

METHODOLOGY 3

COMPANY PROFILE 4

SUMMARY OF QUESTIONNAIRE FINDING 6


INTERPRETATION OF FINDINGS 10
INDENTIFYING GAPS 11
RECOMMENDATIONS 11
SUMMARY OF PERSONNEL EXPENDITURE 12
GRAPHICAL REPRESENTATION 14
ANALYSIS OF GRAPHICAL REPRESENTATION 21
FUTURE PROJECTIONS 23
RECOMMENDATIONS 25
COMPENSATION PLAN 26
ANNEXURE 27
PAY SLIPS I
CAR LOAN POLICY II
SUCCESSION PLANNING AND TALENT REVIEW III
PROMOTIONS IV
PERFORMANCE APPRAISAL (PDP) V
GMS RECOGNITION AWARDS SCHEME VI

MEDICAL POLICY VII


LIST OF PREFERRED HOSPITALS VIII

INTRODUCTION

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A company is an organization established to create wealth by the sale of value-added


goods or services using capital and labor.

A company must therefore increase its capital and improve the quality of its labor if it is to
achieve continuous development, that is, to be able to create more wealth.

The growth of any enterprise relies on the ability to generate increasingly larger amounts
of value added yearly. In the second year, while staff levels are the same as in the first
year, the capital has increased through the addition of internal reserves gained in the first
year, resulting in the augmentation of wealth (value added) produced in the second year.

COMPONENTS OF VALUE ADDITION:

 Personnel expenditure for employees providing labor services (personnel


expenditure means total personnel costs)

 Financial costs paid to providers of fund

 Rents include leasing cost (land, buildings and equipment)

 Tax and other payments to the state and local authorities that offer various public
services

 Pre-tax profit

Therefore, the distribution of the value added by a corporation to various items, in


particular, personnel costs and internal reserves, has a major impact on the growth of the
corporation.

The sustainable growth of corporations ensures the maintenance or increase of


employment as well as the stable improvement of wages and betterment of the national
economy. Companies must make profits in order to invest and grow. On the other hand,
improved pay scales for employees will involve an increase in total personnel costs per
employee.

Both profits and personnel costs are covered by the amount of value added produced by a
corporation. Accordingly, the question of how to increase profits and payroll raises the
issue of how to increase and divide the amount of value added. It is important in this
context to study systematically the appropriate growth in personnel costs per employee
as a share of value added and the extent of retained profits deemed appropriate for
capital accumulation, in relation to the rate of increase in value added per employee.

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METHODOLOGY
In order to address the issue of aligning growth of corporation with raise in wages and
value addition NIKKEIREN has developed a system of CORPORATE PLANNING AND
DETERMINING APPROPRIATE PERSONNEL EXPENDITURE, which focuses on the objectives
of corporate growth and improvement of the corporate financial structure. This system has
been used by me to analyse the corporate planning and personnel growth of Glaxo Smith
Kline Company in Pakistan.

It is aimed at:

 Reminding business people that corporate activities center around value to raw
goods and materials.

 Elaborating the importance of carefully administering personnel expenses in the


process of corporate planning, since a major portion of the wealth generated is used
to finance this cost.

 Implications of wage determination

 Explaining importance to base wage payments on assessments of what company


can afford

 Determining objectives as part of corporate planning aimed at sustainable


development

 Developing the whole system to evaluate level of personnel expenditure on basis of


corporate plan

 Analysing the future costs on basis of past performance of the organization

According to NIKKEIREN system various facts and figures of company growth from the
annual reports of past 5 years, such as: total assets, liabilities, share holder’s equity,
number of employees, capital stock, financial charges, rent, tax and public impositions,
sales, dividend, pre-tax profits etc are taken into account.

On basis of these figures further computations regarding value addition, sales per
employee, ratio of SHE to total assets, turnover ratio of total assets and other
relationships between company’s actual costs and value addition are determined.

On basis of analysis of past performance, companies determine how they will and wish to
develop in the next five years. First, two objectives are set in regard to growth and
financial structure improvement.

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COMPANY PROFILE
GlaxoSmithKline Pakistan Limited was created on January 1st 2002 through the merger of
SmithKline and French of Pakistan Limited, Beecham Pakistan (Private) Limited and Glaxo
Wellcome (Pakistan) Limited- standing today as the largest pharmaceutical company in
Pakistan

As a leading international pharmaceutical company they make a real difference to global


healthcare and specifically to the developing world. They believe this is both an ethical
imperative and key to business success. Companies that respond sensitively and with
commitment by changing their business practices to address such challenges will be the
leaders of the future. GSK Pakistan operates mainly in two industry segments:
Pharmaceuticals (prescription drugs and vaccines) and consumer healthcare (over-the-
counter- medicines, oral care and nutritional care).

GSK leads the industry in value, volume and prescription market shares. They are proud of
their consistency and stability in sales, profits and growth. Some of their key brands
include Augmentin, Panadol, Seretide, Betnovate, Zantac and Calpol in medicine and
renowned consumer healthcare brands include Horlicks, Aquafresh, Macleans and ENO.

In addition, they are also deeply involved with their communities and undertake various
Corporate Social Responsibility initiatives including working with the National Commission
for Human Development (NCHD) for whom they were one of the largest corporate donors.
They consider it their responsibility to nurture the environment they operate in and
persevere to extend their support to our community in every possible way. GSK
participates in year round charitable activities which include organizing medical camps,
supporting welfare organizations and donating to/sponsoring various developmental
concerns and hospitals. Furthermore, GSK maintains strong partnerships with non-
government organizations such as Concern for Children, which is also extremely involved
in the design, implementation and replication of models for the sustainable development
of children with specific emphasis on primary healthcare and education.

Mission Statement

Excited by the constant search for innovation, we at GSK undertake our quest with the
enthusiasm of entrepreneurs. We value performance achieved with integrity. We
will attain success as a world class global leader with each and every one of our people
contributing with passion and an unmatched sense of urgency.

Our mission is to improve the quality of human life by enabling people to do more, feel
better and live longer. Quality is at the heart of everything they do- from the discovery
of a molecule to the development of a medicine.

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VALUES AND POLICIES

The values and policies enable the company to act as a responsible company and ensure
that business decisions take account of ethical, social and environmental concerns.
GSK thinks it should be mindful of the impact that they have on the people and places
touched by their mission to improve health around the world.
They have specified policies for their business ethics, clinical trials, sales and marketing
ethics, animals in research, informed consent, genetic research, drug safety, intellectual
property, patient safety, developing countries, environmental health and safety etc.

GSK facts

 GSK dedicated to Research and Development for 80 years


 Cost of bringing a medicine to market: $800 million (Rs 4.8 billion)
 Average length of time to discover new drug: 10-15 years
 5 out of every 10,000 compounds investigated reach clinical trial phase and only 1 of
those gets approved for patient use.
 GSK has industry's most extensive portfolio of R&D projects for diseases affecting
developing countries

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SUMMARY OF QUESTIONNAIRE FINDINGS

BASIC PHILOSOPHY AND STRATEGIC PRINCIPLE:


The reward system and its development of GSK is based on the current needs and goals of
the organization. The HR management however plays a vital role in formalizing all the
reward management procedures and all fundamental principles are linked to HR
strategies.

All the GSK companies throughout the world have their own management overlooked by
UK head quarters. Therefore they manage their concerns on individual i.e. national basis.

These reward principles are developed on the basis of current and future business
strategies. Reward strategies and HR strategies are linked through organizational design,
recruitment, training, development, performance improvement and effective team/group
work.

The strategy for ongoing reward management is based on organization’s current and
future needs i.e. its aligned with the performance of employee to achieve the goals. Staff
at all levels has fair understanding of this system. Reward system is cost effective and
avoids duplication of efforts. The reward strategy is congruent with the culture of the
organization as it is based on performance of the employee.

OVERALL REWARD POLICIES:

The policy on levels of reward depends on the strategy of organization, the level of
performance and overall turnout on products. Organization does face market pressure in
terms of pay levels because market comparison classifies GSK as an average or low pay
master and people when get bit of experience here are welcomed else where with more
pays. Skill shortage however is not an issue people leave the organization for better
prospects. HR department conducts exit interviews to identify retention related issues.

Rewards are purely linked to individual performances and people are given sufficient
opportunities to enhance their skills and develop themselves. Equity is considered
important for progress of employees in terms of their performance.

INDIVIDUAL REWARD POLICIES:


A formal job evaluation is used to determine internal relativities. It’s called as PDP
(performance development plan). The employee fills in a comprehensive form of about 15
pages which covers wide range of aspects relevant to job, skills and competencies. This

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form is then approved by the manager and is sent to the HR department which studies all
forms and approve or disapprove any recommendation made by the managers in this
regard. The scoring system for performance appraisals provides grade breaks between
distinct levels of work.

PAY STRUCTURE:
Current pay structure caters to performance of individual employees. The system
however, is not flexible enough to cater for current pattern of career development and
promotion or changes in pay/job market conditions.

There are few people in organization who are stuck at one position and cannot move
further for 5-6 years but that is because people are either not improving on their skills or
are resisting to change.

A graded salary scale is in use. The pay structure is relevant to the needs of the
organization; it fits the circumstances and culture but is not very flexible to rapid changes
in pay level that requires to work out of the frame work provided. HR can defend their
decisions on pay levels as its totally dependent on employee performance but
nevertheless it can make adjustments for inevitable conditions where external market rate
considerations have to prevail over internal equity.

Grade structure are designed to create ease for HR department, it is easy to administer.
There are adequate differentials between each grade; basic difference comes in by
benefits provided in each grade. However, overlapping of grade is not in practice. Fixed
annual adjustments are given. Salary levels are falling behind market rates and GSK is a
low pay master in the industry.

System is regularly maintained and up dated to take account of new jobs and roles; and
structural changes in the organization through bi-annual reviews conducted. ‘Grade drift’
is not a big problem as everything is justified through PDPs (performance development
plan).

PAY PROGRESSION:
Pay progression are purely based on performance through competencies acquired and
their application on the job.

Performance or contribution based progression are fairly linked with development


planning and employees are clear on it as they know that PDPs play an important role in
their promotions and progressions. There is a credible, well-established and managed
process of performance management. Employees have control over their results that

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determine reward levels. They are trained to understand and fill their PDPs. Budgets are
allocated in response to man power requirement to meet the production targets that may
vary monthly or quarterly. Furthermore, proper budgeting task is responsibility of payroll
department to ensure effectiveness. Managers have freedom to make recommendations
but they cannot give increments at annual pay reviews.

TOTAL REMUNERATION AND EMPLOYEE BENEFITS:


Reward package is a mix of base salary, cash rewards (for sales people) , allowances,
benefits (e.g.: pension), medical provisions and leaves etc. Nonetheless, no choice for this
mix is available to the employee. The balance between different elements is felt to be in
need of change by the staff.

PENSION:
Pension is provided under EOBI (employee old age benefit insurance) schemes which are
administered by government so the company just get its employees registered with the
scheme.

COST CONSIDERATIONS:
The total employment costs are 27-30% of total operating costs. GSK cannot be compared
in its magnitude to other companies in pharmaceutical industry as GSK is the largest
pharmaceutical company in the country with approx 1500 of non-management staff
working in two plants. The pay budgets are managed, compiled and looked over by payroll
department. IT will soon be playing a major role in HR functions by application of people
soft system in the company. This software is famous for its user friendly characteristics.

Approvals for progressions and promotions are given when appraisals are approved by
managers and then HR department. A major change that need to surpass the boundaries
of pay frame work say, giving a new employee greater than an employee already working
need to be notified with UK house GSK.

The changes in the system are not very common. Additionally the changes in work
processes are also not common considering the sensitive nature of work.

ONGOING REWARD MANAGEMENT:


The people operating the system fully understand its operating principles and
methodologies. Practices are well defined and recorded. The decision-making processes
about updating or changing the system is straightforward. Its effectively designed to
produce acceptable results. PDPs ensure right checks and balances in place at all levels in
the organization.

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IT is playing a role of maintaining record and easing its administration, its role is going to
enhance soon with introduction of ‘people’s soft’ software. Cost management processes
for budgeting, monitoring and controlling outcomes. The company conducts interval
reviews for pay practices but information sharing is not a practice in the industry.

OVERALL PERCEPTIONS AND COMMUNICATIONS:


Management believes the pay system to be effective. The pay offered to GSK’s employees
is lower as compare to rest of the industry but people are motivated to join the
organization due to its goodwill in the market and the learning experience that they get
from working there. Unions’ issues are catered through a separate department of Industry
relations, which deals with all its issues and act as a mediator to support the interests of
both parties. People prefer to work here due to job security.

COMMUNICATIONS:
Employees are well aware of reward policies in the company through a CD that is given to
every employee joining the company. Through this they are informed about the value of
their services, its pay and benefit package.

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INTERPRETATION OF FINDINGS
The company is working on progressive lines, rewarding employees on their performance
and not on their seniority. People performing well get fast progressions and move fast in
their grades and those not having competitive edge get cost of living adjustments but not
those benefits as of good performers. The organization is overall considered to be a low or
average pay master in the industry. However its goodwill in the market encourages people
to join the organization and get a high-quality learning and working environment. The pay
system is equity based as it encourages people to enhance their skills and perform better.
There are situations where inequity arise i.e. when a vacancy is created and people are
not ready to join organization at that pay the bar is increased and a person already
working might be getting lower than the newcomer, such cases result in employee
dissatisfaction however as soon as PDP reviews are filled in the senior employee gets
increment and junior does not which brings in equity again.

Company does not believe in retaining people on the other hand it does not lay off
employees easily. For GSK firing is last resort. HR can go for demotions but not laying off
an employee considering that a person might not be improving but his good job at the
position is equally valued by COLA adjustments. The pay structure is somewhat inflexible
as it has clear graded scale with adequate differentials in each grade.

The reward strategies of the company are global formed by the UK house GSK. These
strategies are then localized to fit in national practices and organization’s culture.

Rewards are given on individual performances i.e. in case of production house it depends
on a person’s performance, punctuality, contribution etc additionally how did the product
went on which the person was working is also considered.

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IDENTIFYING GAPS
• Lower pays as compare to industry

• High turnover rate; about 2-3 persons leaving every month

• Inflexible pay structure

• Internal benchmarking; no comparison with contemporary industry practice

• GSK does not believe on retaining staff

• Organizational or departmental changes of practices is uncommon

• Total remuneration and employee benefits mix is perceived by the employees to


be in need of change

• Low performers are not fired

RECOMMENDATIONS
• Pay levels should be increased at least to come close to industry level if not
above

• More efforts done to retain employees leaving

• Exit interviews and assessments of reasons behind high turnover rate in the
organization need to be done to lay out future strategy

• Persons not performing up to mark can create a cost burden on the


organization in monetary and efficiency terms

• Pay structure should be made more flexible to cater to environmental and


industry needs

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SUMMARY OF PERSONNEL EXPENDITURE


Result 1 1st yr growthrate
2ndyr growthrate3rdyr growthrate4thyr growthrate
5thyr growthrate
sales 8101 0 8867 9.46 9417 6.20 10088 7.13 10611 5.18
valueadded 3638.1 0 4006.33 10.12 4658.33 16.27 5050.21 8.41 5113.7 1.26
personnel expenditure 1449.7 0 1193.4 -17.68 1054.76 -11.62 1405.5 33.25 1425.8 1.45
pretaxprofit 1548 0 2119 36.89 2695 27.18 2632 -2.34 2659 1.03
financial expenses 9.361 0 28.6 205.52 13.24 -53.71 11.55 -12.76 19.31 67.19
rent 108.8 0 17.33 -84.07 14.33 -17.31 34.17 138.45 21.56 -36.90
taxandpublicimpositions 522 0 648 24.14 881 35.96 967 9.76 988 2.17
number of employees 1970 0 1861 -5.53 1790 -3.82 1700 -5.03 1750 2.94
tangiblefixedassests(net) 1461 0 1434 -1.85 1503 4.81 1774 18.03 2237 26.10
total liabilitiesandSHE 5894.7 0 6865.2 16.46 8260.5 20.32 9443.8 14.32 10165 7.63
shareholder'sequity 4585 0 5548 21.00 6738 21.45 7537 11.86 8118 7.71
capital stock 728.2 0 4674.3 541.90 1092.3 -76.63 1365.3 24.99 1706.7 25.01
liabilities 1310 0 1317 0.53 1522.6 15.61 1906.9 25.24 2046.5 7.32
interest-bearingliabilities - 0- - - -
dividend 631 0 757 19.97 1092 44.25 1365 25.00 1621 18.75

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Result 2 1st yr 2ndyr 3rdyr 4thyr 5thyr


salesper employee 4.112 4.765 5.087 5.549 5.85
value added:sales(%) 44.9 45.18 49.46 50.06 48.19
value added:employee 1.846 2.152 2.6 2.97 3.2

growth ratebycomparision with


precedingyr _ 16.57% 20.80% 14.20% 7.74%

personnel
expenditure/employee
(employees' relative share) % 73.50% 64.12% 58.92% 82.60% 81.40%

growthratebycomparision
withprecedingyr _ -14.66% -8.82% 40.19% -1.45%
personnel
expenditure/employee
(employees' relative share) % 39.84% 29.78 22.64 27.83 27.88
pretaxprofit(%) 42.54 52.89 57.85 52.11 52
financial expenses(%) 1.467 0.71 1.25 0.22 0.37
rent (%) 2.99 0.43 0.3 0.67 0.42
taxandpublicimpositions(%) 14.35 16.17 18.91 19.14 19.32
SHE:total assests(%) 77.78 80.81 81.56 79.8 79.86
interest-bearing:total liab. _ _ _ _ _
interest rate(%) _ _ _ _ _
dividendrate(%) 86.65 16.19 99.97 99.97 94.97
T/OTA:Total liab. &SHE 1.374 1.29 1.14 1.068 1.043
equipment productivity(%) 249.18 279.38 309.93 284.67 228.6
tangiblefixedassets/empl. 0.74 0.77 0.84 1.04 1.27
shareholder'sequity 4585 5548 6738 7537 8118
pretaxprofit 1548 2119 2695 2632 2659
dividend 631 757 1092 1365 1621

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GRAPHICAL REPRESENTATION

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ANALYSIS OF GRAPHICAL REPRESENTATION

The graphs are evident that company overall is in good shape. Sales per employee are
showing an increasing trend which is a good indication. Ratio of value added however is
decreasing which need to be looked into. On the other hand value added per employee is
increasing which is efficient working of employees. Personnel expenditure is also
increasing, the company might have to reduce on it or increase further productivity to
make for it.

Pre-tax profits are more or less the same as for the rent, it has decreased. Dividend rates
are same for past three years. Turnover ratio of total assets, need to be improved as more
turnover is good. Equipment productivity improved and then again got affected, GSK need
to strategize and increase utilization of its equipments.

The ratio of tangible fixed assets per employee is increasing for past 5 years consistently.
This shows that company is acquiring fixed assets every year.

The company needs to cut costs or increase efficiency in order to meet upcoming targets.
Though none of the company in Pakistan has such big magnitude of operations as of GSK
but nevertheless the company should not ignore the possibilities of new competition or old
experienced organizations to pose strong competition in near future.

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FUTURE PROJECTIONS

planning1 past 5thyr 1st yr growthra2


te
ndyr growthra3rd
teyr growthra 4te
thyr growthra
5th
teyr growthrate
sales 2321.5 5% 2437.5 5 2559.3 5 2815 5 3153 12
valueadded 5113.7 5369 5 5745 7 6262 9 6951 11 7855 13
personnel expenditure 1425.8 2568.5 80.24 3042 18.43 3584.5 17.8 4244 18.39 5091 20
pretaxprofit 2659 2677 0.67 2574.5 -3.82 2542 -1.26 2564.5 0.88 2614.5 1.97
financial expenses _ _ _ _ _ _ _ _ _ _
rent 21.56 23.5 25.5 29.5 33.5 37.5
taxandpublic
impositions 988 100 103 106 109 112
number of employees 1750 1750 0 1837.5 5 1929 5 2025 5 2126 5
tangiblefixed
assests(net) 2237 2460 10 2707 10 2978 10 3276 10 3604 10
total liabilitiesandSHE 10164.5 11326 11.4 12301 8.6 13154 6.93 13958 6.11 14746 5.64
shareholder'sequity 8118 9174 10086 10918 11724.7 12534
capital stock 1706.7 1750 2.58 1800 2.86 1850 2.77 1900 2.7 1950 2.63
liabilities 2046.5 2152 2215 2236 2233 2216
interest-bearing
liabilities _ _ _ _ _ _ _ _ _ _ _
dividend 1621 1662.5 1710 1757.5 1805 1852.5

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past
performance
Planning2 5thyr 1st yr 2ndyr 3rdyr 4thyr 5thyr
salesper employee 5.85 1.32 7.17 7.17 8.56 10
valueadded:sales
(%) 48.19 49.2 50.2 51.2 52.2 53.2
value
added:employee 2.92 3.07 3.12 3.25 3.43 3.7
growth rateby
comparision with
precedingyr 7.74 5.13 1.62 4.16 5.53 7.87
personnel
expenditure/empl 81.4 82.87 84.52 86.38 88.47 90.87
growthrateby
comparisionwith
precedingyr -1.45% 1.805 12.24 12.72 12.36 14.83
personnel
expenditure/empl
oyee(employees'
relativeshare) % 27.88 47.83 52.95 57.24 61 64.8
pretaxprofit(%) 52 53.2 55.7 56.8 58.96 60.1
financial expenses(%)
rent (%) 0.42 0.43 0.44 0.47 0.48 0.49
taxandpublic
impositions(%) 19.32 21.18 23 25 26.57 28
SHE:total assests(%) 79.86 81 82 83 84 85
interest-
bearing:total liab. _ _ _ _ _ _
interest rate(%) _ _ _ _ _ _
dividendrate(%) 95 95 95 95 95 95
T/OTA:Total liab.
&SHE 1.043 2 2.5 3 3.5 4
equipment
productivity(%) 228.6 218.2 212 210.2 212 218
tangiblefixed
assets/empl. 1.27 1.4 1.54 1.6 1.7
shareholder'sequity 8118 9174 10086 10918 11724.7 12534
pretaxprofit 2677 2574.5 2542 2564.5 2614.5
corporateincome
tax 1338.5 1287.5 1272 1282.25 1307.25

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RECOMMENDATIONS

• The overall sales of the company should see a consistent growth pattern to
meet the increasing costs of employees, assets and liabilities to come.
• Value added per employee has to increase either by reducing costs, increasing
quality level or by discontinuing with low value added merchandise.
• The ratio of value added should be as high as possible
• Number of employees should be increased in accordance with increasing need
to recruit.
• This can be achieved by conducting reviews of duties among departments,
jobs to be performed, mechanization and automation and workers, skills
evaluation.
• Turnover should be as high as possible with efficient use of capital. It is
necessary to use fixed assets more effectively.
• It is necessary to raise the ratio of shareholders’ equity to total assets not only
to strengthen the ability to meet changes in the operating environment to the
enterprise and to withstand recessions, but also to seize growth opportunities.
• The company does not have any long term liabilities for past 5 years, the
company should try to maintain it which would help not to increase further
costs.
• Increase in tangible assets such as such as plant and equipment or
technological innovation should also bring consideration for rental and lease
options that might further increase financial costs.
• Further capital stocks should not be issued because it can result in further cost
increase in the form of dividends.
• Shareholders equity should be increased
• Effort should be made to increase pre tax profits

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COMPENSATION PLAN
GSK is divided in two parts

• GMS: global manufacturing and supply

• COMMERCIAL: includes distribution and marketing

There are 12 grades in GSK. D7 is the lowest and C1 is the highest.

GRADE STRUCTURE:
D7 AND D6 are lowest grade for non-management staff that is included in
management staff for the reason that these people are working in the company for
very long time and does not acquire or does not need to acquire new skills due to
such nature of work. These staffs are part of HRS (human resource services).
Basically the entry level staff is outsourced to this firm which pays a fix standard
amount of Rs.12000/=

The initial entry level in company is through internships where people are paid
Rs.4000-6000. Males are given 6000 (not includes transport facility), females get
4000(transport service is provided). Internships stipend also depends on area of
work whether quality assurance, production or engineering.

Internship: 4000-6000

HRS: 12000

D5: 20000-25000

D4: 28000-35000

D3: 38000-50000

D2: 60000-80000

D1: 85000-100000

C5: 120000-230000

C4: 280000-380000

C3: 400000-520000

C2: 550000-750000

C1: 800000-1200000

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BENEFITS
From D5 to D1 the benefits are same for all employees

House rent allowance: 45%of basic salary

Utilities allowance: 10%of basic salary

Special allowance: 36% of basic salary

Major difference in pay comes in at D2 where basic pay increases more as compare
to differences in other pay grades.

Medical benefits: are given to all employees according to their grades.

• Health policy is attractive and aligned with market

• Provides coverage to all management staff and their spouse(s) and unmarried
children upto age of 24. No age restriction for unmarried daughters

• Maternity benefits are extended upto only two (2) pregnancies only during
employment with the company

• If treatment is not available in Pakistan, overseas treatment may be allowed,


and subject to their prior approval from the insurance company. (certain
exclusions may apply)

• It covers organ transplant and cost of some major treatments.

• A list of preferred hospitals is provided to all employees. The insurance


company has credit arrangement with all those hospitals and patient is not
required to pay to these hospitals. Insurance company directly settle their
claims.

Car Loans:

The company aims to provide interest free loans to its employees in specific
grades to facilitate efficient delivery of business commitments while maintaining
its positioning of providing competitive benefits package.

Eligibility: Employee is eligible if he/she:

• Is not availing company transport facility

• Does not have other vehicle loan outstanding

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• Has a minimum of one year service with the company

Loan Fund: A revolving loan fund is in place from which employee will be allowed
loan to the extent of their entitlement and availability of fund.

Recovery: The amount of loan is recovered on 60 equal monthly instalments over a


5 year period with deductions commencing from the month following that in which the
cheque is issued.

Promotion: on promotion the loan entitlement will change after completion of the
current loan period.

Second Car Loan: second and subsequent car l9oans will not be granted until the
five year period has elapsed from the starting date of the previous car loan.

Use of car: employees are provided loan facility to purchase cars to commuting to
work and performing their official duties. There is also no restriction to utilize the car for
personal use provided business use taking precedence.

Interpretation: the management will have the sole right and discretion to
interpret the aforementioned rules and making any modifications, alterations,
cancellations, etc. as and when required. Any decision by the management on issues
arising out of this scheme shall be final and binding upon the employee.

Registration and ownership: the car will be in the name of the employee but will be
hypothecated in the name of the company.

Education Loan:

The company provides education loan to all those employees who want to opt for further
studies along with their jobs.

These loans are given to motivate employees to gain more knowledge, enhance their skills
and improve their efficiency in their performance contributing towards progress of the
company.

Loans are made to employees who have at least one year experience of work with GSK
and who are carrying on their studies at any HEC recognized institution. It is also assured
that this study or degree is going to contribute to development of organization.

However it is at the discretion of the company to grant loan keeping in view the criterion
of policy.

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SALARY & COMPENSATION GSK

Condition: an employee applying for a loan under this scheme will be required to
sign a copy of this scheme along with a witness to signify his acceptance of the terms &
conditions governing the loan agreement.

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