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2012
SUBMITTED TO:
MAAM ASFIA OBAID
SUBMITTED BY:
BENISH KHALID
JUNAID NASIR
QURAT UL AIN SULEMAN
MARIAM KHAN
RAZA MUBARAK
SYEDA SIDRA SHABBIR
12/24/2012
COMPENSATION AND BENEFITS
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ACKNOWLEDGEMENTS
Starting with the name of Allah, the most gracious, the most compassionate; we would like to
thank Allah Almighty for giving us the strength and the opportunity to successfully carry out and
complete this project. We are thankful to our project supervisor, Ms. Asfia Obaid, under whose
encouragement, guidance and support we were able to understand the subject and cope with any
difficulties faced during this project. We would also like to acknowledge the support of our
Parents and our friends who provided us with their objective and honest opinions. Lastly, we
thank all of those who supported us in any respect for the entire duration of the project.
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TABLE OF CONTENTS
ACKNOWLEDGEMENTS .......................................................................................................................... 2
INTRODUCTION ........................................................................................................................................ 4
Scope of the Study .................................................................................................................................... 4
Objective of the Study .............................................................................................................................. 4
Research Design and Methodology .......................................................................................................... 4
LITERATURE REVIEW ............................................................................................................................. 5
THEORETICAL FRAMEWORK .............................................................................................................. 17
COMPANYS PROFILE- TELENOR ................................................................................................... 19
RESULTS AND ANALYSIS OF PAY SATISFACTION AT TELENOR ............................................... 20
QUESTIONNAIRE ANALYSIS ............................................................................................................ 20
Equity Theory and Pay Satisfaction ........................................................................................................ 20
Fixed Pay and Pay Satisfaction ................................................................................................................ 23
Sense of Belonging and Pay Satisfaction ................................................................................................ 27
Benefits and Pay Satisfaction .................................................................................................................. 35
Variable Pay and Pay Satisfaction .......................................................................................................... 42
KEY FINDINGS ......................................................................................................................................... 45
RECOMMENDATIONS ............................................................................................................................ 46
LIMITATIONS ........................................................................................................................................... 48
REFERENCES ........................................................................................................................................... 48
APPENDIX ................................................................................................................................................. 52
Respondent Information ................................................................................................................... 52
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INTRODUCTION
Scope of the Study
The scope of the study is to determine what criteria of compensation and benefits are considered
by employees as being vital parts of their pay satisfaction.
Objective of the Study
The purpose of this study was to examine the existing compensation and benefits present in the
company in order to infer its effect on satisfaction of employees with regards to pay.
Also, to analyze what previous researches articulate about the key components affecting
employees in a workplace and then compare it to the current situation of Telenor. In doing so, we
will see the difference between the ground realities and what the literature suggests and based on
that we will give recommendations accordingly.
Research Design and Methodology
The sector chosen for this study was telecommunication Industry and within it, the aim was to
study Telenor as the chosen organization. The reason to choose this organization was the fact
that it had a stringent Human Resource Department and also that it is rated as the top
Telecommunication Company. The goal to be achieved was to evaluate the compensation and
benefits structure in the organization and the employees perspective towards their pay.
1. Hypothesis testing study
This research is mainly based upon hypothesis testing. Weve made different hypothesis
for different set of variables, made their statements and after putting them in the
questionnaires, weve calculated their answers. Those answers either rejected or approved
our hypothesis, making our research fall in the category of hypothesis-testing study.
2. Unit of Analysis
The unit of analysis for this research is individual employees of Telenor.
3. Data Collection Method
In order to achieve the goal, questionnaires were administered (attached in the appendix).
Likert scale was used and no open-ended questions were asked which mightve resulted
in varying responses.
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LITERATURE REVIEW
This chapter thoroughly sketches out the entire process of research conducted using references
such as journal articles, books and other published sources. It provides an overview of the
relevant literature on the key areas of compensation and benefits and how they play an essential
role in pay satisfaction ultimately leading to a high performance of an organization. Satisfaction
of employees can ensue both from the job they do and the pay they get and since this research
tries to extrapolate the effect of pay on employees satisfaction, variables according to that are
measured. We will briefly discuss the variables of compensation and benefits and then the
literature will lead towards pay satisfaction and the theories that have been studied overtime for
it. In this research, compensation is the combination of Fixed Pay and Variable Pay and is
different from Benefits which is considered as a separate variable which will be discussed later
in the literature.
Monetary incentives have an important function of a mediator for motivation and have a
considerable role in enhancing the overall performance of employees. Compensation systems
have an effect on both the compensation policies of an organization and the behavior of
employees (Lawler, 1995). Pay satisfaction is becoming an important issue during the past years
because of the leveling and decreases in salaries and wages occurring in the previous years
(Heneman & Schwab, 1985; Heneman, Greenberger & Strasser, 1988; Judge & Welbourne,
1994). It influences employees engagement, the desire to stay with the organization and general
job satisfaction. When employees are more satisfied with pay and understand how it is
determined, they are less likely to question it. Pay satisfaction not only has an impact on job
satisfaction and motivation of employees but is also an important factor in the competition for
talent by offering competitive salaries. Considering the present economic crisis it is difficult for
organizations to attract, retain and motivate talent by offering competitive total rewards, hence it
is important to consider other determinants of pay satisfaction such as compensation and
benefits. These determinants will substitute competitive salaries and will increase the job
satisfaction of employees which will further lead to better organizational performance.
Job satisfaction is perceived to be linked directly towards the productivity of an employee which
in turn enhances the organizational effectiveness. This is the reason that a lot of articles and
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studies have been published and many dissertations have been written on this subject. Job
satisfaction is a pleasurable or positive emotional state, resulting from the appraisal of ones job
experiences (Malik, 2012). It tells about the extent to which the employees like to perform
work. It shows the positive and affective orientation of employees towards the organization in
which they are performing. Therefore, it can be said that job satisfaction is an emotional state
that results from employees perception of their jobs and of the fulfillment of important functions
of the job. Job satisfaction also refers to the employee attitude. High level of job satisfaction
means a positive attitude towards the job and low level of job satisfaction means negative
attitude of the employee towards the job. Workers with high level of job satisfaction are more
likely to be creative, innovative, flexible and loyal and it further results in a workforce that is
motivated and committed to higher quality of performance (Currall et al., 2005). The affect of
job satisfaction on the organizational performance and effectiveness makes the exploration of job
satisfaction very important and one of the most important elements that lead to high levels of job
satisfaction is compensation and benefits. On the other hand, evidence suggests that
dissatisfaction leads to negative affectivity in behavior such as detachment from work, turnover
and increasing intentions to leave and absence (Motowidlo, 1983; Currall et al., 2005). Further
division of satisfaction has been made as intrinsic and extrinsic in literature where intrinsic
satisfaction is more oriented towards a persons level of actualization in terms of their
performance in the job that they are liable for and sense of accomplishment. However, extrinsic
satisfaction ensues from rewards and recognition (monetary and non-monetary) as well as career
advancement. The focus of the present study is on extrinsic satisfaction (Naumann, 1993; Suutari
& Tornikoski, 2001).
Compensation and Benefits
Total compensation includes cash compensation and benefits. For the sake of this research, well
use the term compensation for cash compensation. According to Deluca (1993) and Rajkumar
(1996), compensation is defined as pay, reward, remuneration or salary and wage management.
Compensation can be direct and indirect payments, monetary and non-monetary rewards and
cash and non-cash payments, which are primarily used to reward employees for their
performance in the organization (Noe, Hollenbeck, Gerhart & Wright, 2004). Compensation in
monetary form is seen as a measure of justice; therefore, mostly it is seen in the form of financial
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returns and tangible services and is considered as the major source of financial security by the
employees (Milkovich & Newman, 2008). Chen and Brian (2004) proposed that mostly
compensation in organizations has the components of base pay; overtime pay (OT), bonuses,
commissions, the dollar value of restricted stock awards and gains from exercising stock options,
profit sharing, and so on.
Benefits on the other hand are non-financial form of compensation to better the lives and
working experience of an organizations employees (Nazir, 2010). These are the most important
motivator of employees. They are one of the major financial expenditure that an organization
incurs and plays a significant role in motivating employees as well, which is why significant
amount of research has been done on it (Rynes & Gerhart, 2000; Lawler, 1990; Henderson,
2000; Weathington & Jones, 2008). A job should suit with the creativity and the talent of an
employee and more importantly it should compensate the employee both in terms of salary and
other benefits in accordance with the job.
In an organization controlling, planning and organizing of pay systems is emphasized by
compensation which makes it a very important human resource management function. However,
compensation alone cannot direct an employees performance to a certain level unless it is
accompanied by employee benefits. According to Beam and McFadden (2000), employee
benefits are all the benefits and services other than wages paid to employees for time worked,
that are provided to employees by the employer in whole or in parts. When World War 2 ended
and Europe was completely destroyed, none of the powers emerged as victorious and financial
crisis was there in every nation; in such a situation it was very difficult for the employers to
reward their employees with a competitive salary. This effected employees job satisfaction and
in turn had a profound effect on their performance. This job dissatisfaction was then countered
by the employee benefits in order to enhance organizational effectiveness. There are employee
benefits that are mandated by law while some are provided by the employers to enhance the
employees job satisfaction. Employee's benefits include disability income protection, retirement
benefits, work-life balance (for example sick leave, vacation, jury duty and et cetera), allowances
(dental, insurance, medical, transportation, housing, mobile phone et cetera), and so on.
In todays fast moving world, where competition is so strong that if an organization does not
perform, it is ousted of the business, the organizations need a well informed, involved and highly
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motivated work force and this is possible only when they have a strategic, holistic and integrated
approach to compensation and benefits (Chen & Hsieh, 2006).
Compensation paid to employees serves the employer or the organization many important
objectives. The most important objectives served by compensation are to attract, retain and
motivate high-potential employees but at the same time there are certain constraints that the
organization faces and should be taken into consideration while planning a compensation
strategy for the employees such as the maintenance of equity, cost control and legal requirements
(For example, wage and salary legislation) (Steven & Loring, 1996). Compensation rewards
performance relative to others and there is progressive improvement in year-to-year results.
Compensation also provides regular measures of success or progress of the employees which in
turn reflects the organizational performance. It also balances rewards with risks and provides
capital accumulation opportunity to the employees. Therefore, compensation is very crucial to
both, the employees and the employers or organizations (Yale & Donald, 2002).
Fixed Pay
A very important component of compensation is fixed pay. Diener and Seligman (2004) argued
that with a much lower pay, pay satisfaction can be a little higher. Mostly sales people who were
remunerated through fixed salary demonstrated higher level of job satisfaction and fewer
turnovers was observed contrary to their fellow employees who were remunerated through
incentive pay, who showed dissatisfaction with their pay (Chaudhrya, Sabirb, Rafi, & Kalyarc)
Different perception prevails about the pay. Employees with positive thinking appear to be more
satisfied with pay as compared to employees with negative thinking (negative affectivity).
Negative affectivity may result in employees being dissatisfied with certain aspects of their jobs
which in return may have an effect on organizational outcome. Other factors determining pay
satisfaction may include ownership of the organization. Employees having the sense of
ownership of firm may seem satisfied with pay as compared to others lacking sense of
ownership. (Sharma & Bajpai, 2011)
Flatherty and Pappas (2002) argued that people who are paid fixed salary show higher
satisfaction and lower intentions of employees for leaving the organization during exploration
while salespeople in establishment demonstrated the same higher satisfaction and lower turnover
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when given incentives. Employees who were hired by organizations that were pursuing analyzer
or prospector strategy showed higher satisfaction than those who were employed in defender
firm in establishment stage. Pappas (2002) proposed that employees compensated through fixed
salary showed higher job satisfaction and decreased turnover rate than their counterparts who
were numerated via incentive pay. (Sharma & Bajpai, 2011)
Job security also plays an important role in pay satisfaction. Employees who want security are
more satisfied from job than those who want pay increase. Kathawala et al., (1990) argued that
some employees preferred increase in pay rather than job security. (Sharma & Bajpai, 2011)
Many others authors of behavior school of thought argued that pay satisfaction also depends
upon age and seniority. Lawler and Porter (1963) proposed that many factors affect pay
including seniority, time in position, organizational size and age. Seniority can also be used as a
predictor to determine the actual pay. It can be argued that age and seniority do lead to increased
performance, as an employee seeks experience his or her ability to perform a job increases which
would lead to a better organizational outcome. The correlation between pay and seniority depict
that organizations are compensating for merit (Sharma & Bajpai, 2011).
Seniority bonuses also are the component of fixed salary which is usually given to employees
after serving the organization for certain time period (experience). Merit increments are also
added in base pay after evaluating the past performance of an employee. These are not earned
again as in the incentive case, in which incentives are re-earned because they are given to
achieve certain objectives.
Variable Pay
Pay is considered as an essential factor or variable for determining job satisfaction. It is a relative
thing as discussed in the theories above. A certain amount of pay, to meet ones needs, is crucial
for people however, beyond that level flexible pay schemes play a significant role in pay
satisfaction. Organizations performance is enhanced if the flexible benefit scheme is aligned
with both the HR and business strategy of the organization.
Flexible benefits concept originated from North America in the 1960s. Today, many
organizations use flexible pay as a reward for high productivity of its employees. Flexible reward
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schemes impacts recruitment, selection, retention, employment relationship, organization and
individual performance. Traditional fixed pay reward system (one-fits-all benefits package) will
eventually phase out as it doesnt meet the need and demand of increasing diversified employees.
Flexible pay system could be achieved by increasing the variable pay and short/medium term
deferred income in the compensation package of the employee. Variable pay distribution is
uncertain and it consists of bonuses, incentives, goal-based pay, overtime, gain sharing, et cetera,
where as deferred income are sums that are blocked for a certain period of time before becoming
available and it includes employee stock ownership plans, company saving schemes, profit
sharing. Financial incentives will get people to do more of what they are doing (Calvin, 1998).
This means that employees will do a better job if they have been promised some sort of
incentive.
There exists a relationship between variable pay schemes with employees job satisfaction and
organization performance. Flexible pay corresponds to the need of the organization and
employee. The whole idea behind flexible pay system in an organization is to cut the fixed
costs/variable cost ratios. Flexible schemes or benefits decreases employees turnover and helps
to attract candidates. This results in reducing costs of recruiting, selecting and training workers.
It allows the organization to use the savings into developing the existing experienced workforce
and will result in improved individual and company performance.
Researchers discovered that flexible pay schemes can result in a positive relationship and
increased employee satisfaction (Barber, 1992). The increased employees satisfaction with
benefits, will promote a higher level of motivation and productivity (McFadden, 1988).
However, flexible pay schemes approaches differ considerably from one organization to another.
This indicates that they are tailoring programs to fit their needs of the workforce and the
workplace. Flexible benefits providing staff with a choice to adopt, or flex their reward
package, in order to meet their personal circumstances (Hutchinson, 2004).
Based on expectancy motivation theory, a flexible benefits system has relevance in context of
expectancy of motivation because it allows employees to choose the best rewards system that
most fits their needs. (Mckenna, 2000). This means in order to attain desired performance or
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result, organization should go for a customer-driven approach to their benefits program to
achieve personal circumstances.
Flexible pay schemes have considerably impacted organizations as whole. The scheme helps to
build up a good relationship through employee empowerment, engagement and involvement.
Flexible benefits offer many benefits to both work force and work place in the form of work-life
balance, financial incentives and organization performance. Flexible schemes also have
drawbacks in terms of difficulty of administration and enormous running costs. For its successful
implementation, transparency and communication should be insured. If flexible benefits reward
strategy integrated seamlessly with the business objective and HR strategy, it will improve
employees motivation level and raise the organizations performance
Benefits
Like compensation, benefits also have importance for both the organization and the employees.
Benefits are crucial for the organizations because they are used to attract and retain good and
talented workers. On the other hand, for employees, benefits carry more importance because they
rely on benefits such as medical subsidies, vacations, and retirement et cetera. to secure their
financial well-being. Benefits vary with respect to the seniority of the employees in the
organization and this makes the workers reluctant to change their jobs (Gerhart & Milkovich,
1992). Employee benefits are used by the organizations to recruit and retain talented employees.
In the present day, almost all the economies of the world are facing financial crisis and in times
like these it is not possible for the organizations to offer their employees pay raises and bonuses.
It is here at this point where employee benefits become an important tool for the employers to
increase loyalty, productivity and job satisfaction.
Benefits are made up of three major components. Firstly, benefits consist of the allowances part
which are mainly the housing, food and transportation allowances. The second part of benefits
consists of employee welfare programs and recreational opportunities concerning tickets for
various entertainment events, family assistance, scholarships. Included in this are also flexible
work timings (telecommuting, nonpaid time off et cetera), drug counseling, jury duty, vacations,
child and elder care and a fulfilling work environment. Lastly, it includes pension plans, disabled
workers allowance, medical insurance, retirement plans, life insurance and savings plan. The
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types and levels of benefits package that is provided by the organization to its employees and the
employee contributions determine the satisfaction level with the pay. Keeping a check on how
benefits satisfy the employers is the key to keeping employees happy. If employees work hard
and put effort in order to gain better benefits and are also rewarded then they will perform better,
have higher levels of pay satisfaction. Therefore, benefits create an economic exchange with
organizations because employers get better quality work and employees want better benefits in
their pay package to be satisfied and are willing to put time and effort for it (Faulk, 2002). The
traditional approach for measuring employee satisfaction with benefits was to measure the
benefit as a part of the pay satisfaction and therefore measuring the replies provided by the
employees to the benefits package provided by the organization (Balkin, 1993).
Benefits satisfaction is comprised of two parts, the satisfaction associated with the benefits cost
and the quality of the provided benefits. Both of these components are measured by comparisons
with the referent other and also what employees perception are towards the organizations ability
to provide benefits. These perceptions are influenced by the overall benefits provided, the actual
use of these benefits by the employees, the cost associated with them and the contribution from
the employers side. Along with this, an employees values, expectations and their personality
also affect the benefits package. An employee also needs to be aware of the total available
benefits accessible to them which are enhanced through proper communication by their
employers (Lust, 1990). Benefits play a vital part in the total reward package hence impacting
the organizational performance in the total reward system (Lin, 2010). Therefore benefits are an
important part of the pay package. Employees also view benefits as entitlements for
organizational membership. They need to be individual specific which will enhance its
acceptance and give the highest satisfaction. Those employees who are satisfied with their
benefits are therefore less likely to quit the organization which in turn results in better
organizational performance and better turnover. Flexible benefits plans demonstrate the
significance of benefits congruence to employee needs. For high employee satisfaction,
managers who provide benefits need to collaborate with employees to identify the personal needs
on the basis on which they can provide them with benefits. Theory of Reasoned Action claims
employees belief over the value benefits provide and how it develops a positive attitude of
employees towards these benefits which in turn determines the satisfaction level. This
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satisfaction then leads to their commitment with the organization which is based primarily on
their pay satisfaction (Markova, n.d.).
Their satisfaction with the benefits component of pay is also determined by how quickly
reimbursements take place. Employees who perceived that the process of disbursements of
benefits by managers were fair also contributed to the overall satisfaction level with the benefits
specially in the case of sick leave and vacation time. There was less satisfaction with individuals
who perceived the process as less fair. Also employee participation in benefits decision as well
as individuals perception that their preferences for the benefits plan was taken into account,
created a high degree of pay component satisfaction (Williams, 2002).
Pay Satisfaction
Pay is considered as episodic payment to an employee due to the employee and employer
relationship (employment contract). On the contrary piece wages are paid separately, rather than
on periodic basis. Pay is considered as an important tool to motivate employees and direct their
attitude and behavior towards the organizational goals and objectives. There are many other tools
present to motivate employee and increase their job satisfaction but satisfaction from pay is
necessary. Katzell (1964) stated that pay satisfaction depends on the difference between the
perceived pay and the amount of pay a person received. (Sharma & Bajpai, 2011; Chaudhrya et
al., n.d).
Pay satisfaction has a narrow scope than job satisfaction but it is the most important factor that
can affect organizational outcomes. Dissatisfaction with pay may lead to reduced motivation and
performance of employees and increased absenteeism and turnover. During many years
observations, it was noticed that monthly pay, that were obtained by employees, were favored in
contrast to incentive pay which varied in context. (Sharma & Bajpai, 2011)
Empirical evidence on pay satisfaction has significantly increased and research suggests that,
despite it being a part of job satisfaction, it still has various dimensions to itself as well.
Heneman and Schwab (1995) have been considered the first amongst researchers to identify the
multiple dimensions of pay satisfaction and gestate its constructs including pay level, pay raises,
benefits structure and administration where these are measured by the Pay Satisfaction
Questionnaire (PSQ) (Fong & Shaffer, 2003). However, some authors opinion differs and they
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argue that pay satisfaction is has no further dimensions (Miceli, Near and Schwenk, 1991; Faulk,
2002). Due to this variance in research on pay satisfactions own dimensionality, it has been
suggested to investigate the association of pay satisfaction with other variables as it results in
more significance towards organizations (Faulk, 2002; Heneman and Judge, 2000).
With the investigation and research of pay satisfaction for the past 3 decades, it being an
interesting dimension affecting the organizational performance as well as employee behavior and
attitude, several theories and models have been formulated and applied since its introduction in
the field of research. The most common and well-known models which help in determining pay
satisfaction is the Equity Theory (Adams, 1963) and Discrepancy Model (Lawler, 1971). These
models elucidate employees drawing out satisfaction from their compensation plans.
Equity theorys roots lie in the concept of social comparison where an employee equates the
amount of input they give and the resulting output they get with that of others. This comparison
of input/output ratio can be done with employees in the same organization as well as other
organizations and if the ratio is lesser or smaller than that of another employee, it results in
inequity and dissatisfaction and employees are motivated to lessen the inequity. These perceptual
comparisons can be done with factors such as pay, time-off, benefits and recognition (Adams,
1963, 1965; Faulk, 2002).
The theoretical basis of the discrepancy theory, proposed by Lawler in 1971, lies in the concept
of social comparison, just the same as equity theory. In addition to that, Vrooms expectancy
theory is also utilized to formulate discrepancy theory. According to Vroom (1964), employees
behavior is motivated by pay if it leads to desirable outcomes and the employee gives it a high
valence. Discrepancy theory focuses on what an employee expects and the reality and the
discrepancy between the two affects the employees satisfaction levels. It is basically the
perception an employee has and the difference between those two perceptions regarding the
characteristics of the tasks he/she considers worthy. This highly depends upon the personal needs
and aims of the employee as well as what he values, his beliefs and expectations from the
outcomes of the job. Hence, the satisfaction from such aspects of a job results when the
employee perceives the reality of these aspects and what they should be (Igalens & Roussel,
1999; Lawler, 1971). This was the one dimensional aspect of pay satisfaction in literature after
which Heneman and Schwab (1985) built upon Lawlers work and modified the theory to
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conceptualize the multi-dimensionality of pay satisfaction with 4 dimensions and developed
PSQ. Implications of this study suggested that these dimensions of pay satisfaction might affect
the outcomes in a different manner (Faulk, 2002).
Pay satisfaction differs according to levels of management and departments as the job
descriptions also vary from level to level and department to department (Dreher, 1981). In formal
organizations, pay is considered to be one of the most significant components as it affects
significant organizational behavior variables. According to the hypothesis of the article by
Tames A. Roberts (1996), pay satisfaction (money) is the basic motivator for employees
(including bonuses and commissions). In other cases, financial motivation might not be
necessary, like research employees might give more importance to the fringe benefits, career
progression and learning opportunities.
Another important factor for employees is the equity and fairness of rewards amongst coworkers
following internal equity and their perception. The perception of fairness also depends on the
comparison with other organizations if followed external equity. These comparisons mount to
the perception of fairness and ultimately pay satisfaction. Roberts (1996) also emphasizes that
employees, such as salespersons, are more prone to commission based salaries with a fixed
salary which increases their motivation and in return helps the organization to achieve high
(individual as well as team) performance related to pay.
The pay satisfaction as said for the operational level employees is mainly monetary, increasing
the probability of high performance which in comparison to knowledge workers is variant as the
pay satisfaction for them would ensue from opportunities to develop themselves and such.
Monetary pay satisfaction is vital for every level of employees but here the focus is more on
fringe benefits along with career development and learning opportunities. Research level
employees are not too much concerned with the equity aspect of the pay as their main concern
are the flexible benefits that they would get on the basis of their competencies, skills, job
contribution and education.
Pay satisfaction is affected by a number of variables which as identified by Heneman and
Schwab (1985). The performance level increases with pay raises as the affect is direct between
the two. The raise in most of the organizations is considered to be a promotion or a step forward
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in taller hierarchies, showing increase in cumulative pay. However, in many organizations the
increase in the pay can be non-cumulative depending upon targets or if the pay structure is
commission-based. The pay raises are different at senior, middle and lower level of management.
The benefit sets can also be fixed or flexible depending upon the pay package for the employees.
Mostly flexible benefits basket is used by the organic organizations and fixed benefits in
mechanistic structure. Generally defined benefits at all levels are considered easy to monitor but
increases cost, providing all benefits to all employees even when they do not require it. Such
benefit plans also fail to provide meaningful benefits to employees as they have varying age,
needs, interests and lifestyle. The employees at high and senior level want their pay benefits to
be flexible choosing from the basket and generally low level employees have fixed and defined
benefits. So pay compensation is dependent on level, raise and benefits which in turn effects the
organizational commitment of employees. According to research, the empirical evidence for both
the samples taken in a study by Tremblay (2008) proves that these four variables are important
for pay satisfaction. These factors act as motivators, increasing positive correlation of high
performance and high commitment from bottom to top that is for low to senior levels of
employees maintaining a high performance organization.
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THEORETICAL FRAMEWORK
1 Theoretical Framework
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This theoretical model explains the relationship of compensation and benefits (independent
variables) on pay satisfaction (dependent variable). Compensation and benefits have either a
positive or negative relationship with pay satisfaction.
Compensation is further divided into two main components .i.e. fixed pay and variable pay.
These two are then separately linked with pay satisfaction in order to deduce that either one or all
positively contribute towards pay satisfaction. These two are further explained below:
Fixed Pay
Fixed pay is further divided into three subcomponents which are base pay, seniority bonuses and
merit increments. Base pay is the fixed amount paid monthly. Seniority bonuses are the
incentives received by employees due to the experience or time period spent with the
organization. Merit increments are incentives given to employees on their past performance
evaluation which is usually added to base pay.
Variable Pay
Variable pay is the component of compensation which is varied according to individual
performance. It is sub divided into various components like goal sharing, profit sharing, gain
sharing et cetera.
In the light of above literature, this study is focused towards measuring the relationship of
various components (discussed above) of compensation and benefit and pay satisfaction. Thus,
hypothesis for this study are as follows:
H1: Fixed pay is positively related to pay satisfaction
H2: Benefits are positively related to pay satisfaction
H3: Variable pay is positively related to pay satisfaction
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COMPANYS PROFILE- TELENOR
Telenor was established in the year 1855 in Norway. It ranks as the worlds seventh leading
mobile operator with above 150 million subscribers. Telenor is owned by Telenor ASA and adds
on to its operations in Asia together with Thailand, Malaysia and Bangladesh. It is an
international provider of high quality voice, content, data and communication services.
Telenor Pakistan was launched in the year 2005 as a single major European investment in
Pakistan. Telenor Pakistan has now become a leading mobile communication services provider
of the country. Its corporate headquarters are located in the capital city Islamabad and its
regional offices are in Karachi, Lahore, Faisalabad, Multan, Hyderabad and Peshawar
In the beginning of the year 2012, Telenor Pakistan had a reported market share of 24% and a
subscriber base of 28.47 million, making Telenor the second largest mobile operator of the
country. Telenor is growing at a great pace and is present in many remotest areas of Pakistan as
well. Telenor is investing deeply in infrastructure expansion in order to stay ahead of other
cellular network companies operating in the country. Telenor has already invested USD2 billion
and has further extended agreements with vendors for network expansion and services.
Telenor has created 2,500 direct and more than 25,000 indirect employment opportunities across
Pakistan. The company has coverage in 3500-plus cities and towns throughout the country,
making it the second largest GSM service provider in Pakistan. Telenor has over 7000 cell sites
in Pakistan and offers GPRS and EDGE services
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RESULTS AND ANALYSIS OF PAY SATISFACTION AT TELENOR
QUESTIONNAIRE ANALYSIS
Equity Theory and Pay Satisfaction
Do you think that the annual salary of your peers when compared to yours is more?
Figure 2
Analysis
First question depicts whether the equity is being catered to or not. 50% agreed that they are receiving
less as compared to their peers and 33% respondents disagree with it. So it is more of a moderate view
and is varying among employees but as more employees disagree hence, we deduce that employees at
Telenor are putting more efforts than their counterparts but receiving less, which results in pay
dissatisfaction and inequity. This may also have bad impact on organizational performance. This showed
that there is a difference between employees perceived pay and the actual pay which would result in
demonization and reduced individual performance. There could be various reasons for it as explained
during an interview from one of the Telenor employees that every job has varying pay ranges. One
employee in Telenor might be at a start-up stage while another might have more time and skills to get
results hence leading to more pay.
The estimate average annual salary in your region for people holding jobs
comparable to your own is less.
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Figure 3
Analysis
This question asks about the estimated average annual salary of employees in the respondents
region who are holding jobs comparable to theirs and if it is less than theirs or not. The response
to this question shows that almost 52% of the respondents disagreed with this statement showing
that the employees at Telenor seem to be considering other organizations to be paying the same
or may be more for the same kind of jobs.
According to literature, equity theory states that employees compare their input and the output
they get for that input with employees in other organizations. Such comparisons may result in an
increase in motivation or it may also have a negative effect on the motivation of employees
depending upon the nature of the result that comes out of the comparison, that is, if the
employees consider their salary greater than that of employees in another organization, they will
be motivated but if the average annual salary is considered lower than the employees in other
organizations than the motivation level of employees will be negatively affected.
Keeping in view the above description from literature and the data collected, it shows that
majority of the employees do not consider their estimated annual salaries greater than those
employees working in other organizations in the same region. As the question does not give the
detailed information about whether they considered their salaries on the same level or lesser than
the salaries that employees get in other organizations so it cannot be directly stated that the
employees at Telenor are satisfied or not but it can be inferred from the fact that 48% employees
either stayed neutral or agreed with this statement that the satisfaction level of the employees is
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not negatively affected by this comparison. A positive result would have showed a greater level
of pay satisfaction which would have further enhanced the organizational effectiveness because
although pay satisfaction is a part of job satisfaction but it has a very crucial role in directing
organizational effectiveness.
Please think of one person at work with whom you most compare yourself. Is the
salary of that person more?
Figure 4
Do you think that the minimally acceptable annual salary for people holding jobs
comparable to your own should be more?
Figure 5
Analysis
The above two questions in the questionnaire asked the employees to compare their salaries with
one person performing the same work as was performed by the respondent in the same
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organization and to state if the salary of that employee was greater. This question was asked in
order to get information about the level of internal equity in Telenor. The employees were asked
to compare themselves with an employee in the same organization. The response showed that
44% of the respondents agreed with the statement which means that when they compared
themselves with an employee with a job comparable to his, the employee considered the salary
of the other employee greater than his salary. Again this is due to the fact, as explained during
analysis of question one, that employees may have same job level but different pay as one might
be at a start-up stage and other might have more skills and time spent with the company. While
on the other hand 24% respondents disagreed to this statement and 32% stayed neutral which
shows that almost more than half of the respondents didnt have a positive response to this. So it
can be inferred that 56% of the respondents were satisfied with their salaries while comparing
their salaries with the employees in the same organization.
According to equity theory and the data collected, it can be said that the ratio of effort employees
put in their work to the rewards that they get in response for their input is in balance for majority
of the respondents and from this it can be inferred that there is no negative effect on the
satisfaction level of the employees in Telenor.
Fixed Pay and Pay Satisfaction
Hypothesis 1: Fixed pay is positively related to pay satisfaction
I am receiving fair salary if considered the experience I have.
Figure 6
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Analysis
The question I am receiving fair salary if considered the experience I have shows that
employees at Telenor are not compensated on the basis of experience or seniority mostly. 50 %
of respondents disagree with it which shows that there is no such rigid or bureaucratic hierarchy
where employees are remunerated just on the basis of their relationship (time spent in a position)
with the organization, rather employees are remunerated according to their contribution towards
organization. Pay for performance concept prevails in this organization which indicates a flexible
and somewhat flat structure which would be needed in todays competitive environment. This
was also supported by the interviewee that they have pay grades with salary bands. This pay
structure laid emphasis on employee contribution towards organization rather than just spending
time period with organization.
Seniority bonuses given to employees are market competitive
Figure 7
Analysis
Second question regarding whether seniority bonuses are market competitive or not indicates
neutral responses from the respondents. This means that this factor doesnt contribute towards
pay satisfaction as confirmed by the interviewee that they don`t consider the seniority bonuses
because their focus is on Total Reward instead of individual offerings and also they have pay
for performance culture which negates the seniority bonus concept. Pay for performance as
explained by the interviewee at Telenor is contributing towards organization either financial or
non-financially. Non-financial means that at operational level for instance, human resource
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department might get the task to reduce turnover rate to say 10% and if the employees achieved
it regardless of the fact that he/she is new or old (say ten years experience) in the organization,
he would still get the rewards.
Merit increments awarded for performance are satisfiable.
Figure 8
Analysis
Third questions Merit increments awarded for performance is satisfiable depicts the pay
satisfaction among employees through merit increments. About 66% employees are satisfied
with the merit increments which they received as a result of their past performance evaluation.
Employees are satisfied with company merit increments policy which results in high motivation
and enthusiasm to work for the company resulting in high organizational performance. Merit
increments reward the individual performance in order to maintain the equity environment which
results in high morale of the employees and have positive effect on organizational outcomes.
They are cumulative in nature and are added in base pay each year and then next increment is
based on new pay. This result shows that employees at Telenor are satisfied with this component
of fixed pay which would result in increased individual performance.
Merit increments are given frequently
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Figure 9
Analysis
Last question for fixed pay Merit increments are given frequently shows that approximately
50% of employees receive the merit increments on frequent basis, which has a positive impact on
employees satisfaction. This helps in creating positive line of sight towards performance and
reward. If the reimbursements are not frequent this might lead to dissatisfaction among
employees.
As our first hypothesis was:
H1: Fixed salary is positively related to pay satisfaction
From the above discussion it is clear that our H1 is valid because merit increments are part of
fixed pay which contributed towards the pay satisfaction of employees. Rewarding past
performance motivates employees to continue his/her performance up to the mark in order to
gain these increments on regular basis which in return help the organization to meet its goals
efficiently. Seniority bonuses were not cratered to because of the fact that the company has a
flexible pay structure of salary bands (six bands) which mostly competitive companies adopt in
order to cope with the changing market demands. It has importance in contrast to seniority based
culture because it empowered employee which results in quick and effective decision making.
Through it the major issue of grade drift is also catered.
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Are you satisfied with the average annual salary over the past 5 years?
Figure 10
Analysis
It determines the overall picture of the employees satisfaction with their salaries in the past
periods as well. 50% agree to the fact that they are satisfied with the pay raises associated with
the annual salary they accumulated in the past years. Heneman and Schwab (1995) have
identified the multiple dimensions of pay satisfaction and gestated its constructs including pay
raises where these are measured by the Pay Satisfaction Questionnaire (PSQ). This is a major
indicator of low turnover rates and workers putting in effort towards achieving work.
Generally speaking, I am very satisfied with the salary I am receiving.
Figure 11
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Sense of Belonging and Pay Satisfaction
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Analysis
The next question determines the current state of mind of the employees and whether they are
satisfied with their salary or not. According to the hypothesis of the article by Tames A. Roberts
(1996), pay satisfaction (money) is the basic motivator for employees (including bonuses and
commissions), which means that the employees are satisfied with their pay.
As fixed pay is a large component of the salary of employees it means that the compensation
structure that is being followed at Telenor, more than 50 percent of the employees are happy
with it, however around 25 percent seem not to be happy with the current remuneration they are
receiving
I am content with the kind of work I do in this job.
Figure 12
Analysis
100 percent of the employees seem to have job satisfaction at the organization which means that
their job contains enrichment and keeps them motivated. Job satisfaction is integrally related to
pay satisfaction and therefore this would mean that all the employees feel content and own their
work. Job satisfaction is perceived to be linked directly towards the productivity of an employee
which in turn enhances the organizational effectiveness. Job satisfaction is a pleasurable or
positive emotional state, resulting from the appraisal of ones job experiences (Malik, 2012).
Their work must provide them with growth opportunities as well as hold interest for them. And
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therefore this must lead them to contribute towards achieving organizational goals and in return
display contentment about their compensation package.
Most of the people in this company are satisfied with their salary.
Figure 13
Analysis
This question depicts the employees perception of pay satisfaction among other employees. This
could be due to a general level of contentment by peers and the fact that the there exists pay
satisfaction among different levels of pay. Only one third agree to this fact while a high
percentage remained neutral.
I would be very pleased to spend the rest of my career with this organization in
terms of salary.
Figure 14
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Analysis
This response indicates that around 50 percent refused to agree or disagree which means that
salary is not only the component that matters when you stay with an organization. The benefits
as well as variable components affect the decision making.
I do not feel a strong sense of belonging to my organization.
Figure 15
Analysis
The employees refute the fact that there is no sense of belonging. This clearly depicts that not
only are they satisfied with the work being provided by the organization but also by the salary
and benefits they are receiving.
I would switch to other company if I am offered more salary than I am receiving in
this organization.
Figure 16
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Analysis
This question depicts the fact that 40 percent would not switch to another organization even if
their salary was increased which clearly shows that the salary is not only the determinant of
employee being in an organization; there are several other factors which might be the work that
employees are given, benefits, variable pay or culture. However for 25 percent of the employees,
salary is a major factor for them when considering their satisfaction level with the organization.
I feel that I have too few options to consider leaving this organization.
Figure 17
Analysis
An organization tries to retain its employees by providing good pay packages and benefits.
However, employees still might consider leaving the organization if better opportunities exist.
Looking at the response to this question, it is evident that employees consider it to be a good
place to work for as other than this they consider the market has few options if they were to
consider leaving Telenor.
If I had not already put so much of myself into this organization, I might consider
working else where
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Figure 18
Analysis
Around 33 percent of employees agree that they are with organization only because they believe
that they have put a lot of effort in the organization and perhaps they wouldnt like to switch to
another organization. On the other hand around 46% are happy with their current job and pay
level and have no desire to leave the organization. This shows that they are content with their
salary package including the benefits and variable component.
It seems there is not much salary progression if I remain with the organization
indefinitely.
Figure 19
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Analysis
There seems to be discontentment in the salary progression of the organization as it is mostly pay
for performance. However, 46% of the employees disagree that their chances of salary
progression are less. They believe that the more an employee stays with an organization, more
are their chances of salary progression.
There's not too much to be gained (other than salary) if I remain with this
organization indefinitely
Figure 20
Analysis
This once again reiterates the fact that salary is not the only component that contributes towards
satisfaction for employees. There are other factors that may account for employees staying with
the organization and the employees seem to be satisfied with these other components. This
shows that generally the employees of Telenor are satisfied not just with the organizations
compensation system but also because it provides them with career growth and development
opportunities.
I am receiving fair reward for the effort that I put forth.
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Figure 21
Analysis
50 percent of employees perception is that they are not receiving fair remuneration for the
amount of hard work they are putting in their jobs. This means they consider the salary to be less
than what they expect. However only around 26 percent believe that the salary they are receiving
is in lieu with the effort they are putting in. It is stated that pay satisfaction depends on the
difference between the perceived pay and the amount of pay a person received. (Sharma &
Bajpai, 2011; Chaudhry et al., n.d.; Katzell (1964). So there might be some evidence of this in
the minds of the employees.
I receive appreciation as well as monetary reward for what I have done well.
Figure 22
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Analysis
Around 45% of the employees are content with the relational return of appreciation and the
monetary reward which includes their fixed pay as well as variable pay given by the
organization.
Benefits and Pay Satisfaction
Hypothesis 2: Benefits are positively related to pay satisfaction
The medical, transportation, mobile and house allowances are not sufficient.
Figure 23
Analysis
Benefits play a vital part in the total reward package hence impacting the organizational
performance in the total reward system. Around 53% of employees think that the current benefits
being provided by Telenor are sufficient and account for their benefits satisfaction. However
there are around 26% of employees which agree to the fact that Telenor could provide better
benefit packages.
Disability income protection concept is not prevailing in this company
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Figure 24
Analysis
This question analyses the fact that do employees sense a need for more benefits than they are
currently getting with regards to disability income protection. Employees have a perception
towards the organizations ability to provide benefits. However employees preferred to have a
neutral opinion on this question which depicts their benefit satisfaction on the whole without
disability income protection or their lack of knowledge about it.
Types of employee welfare programs provided could be increased by the
organization.
Figure 25
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Analysis
This shows that employees want that the benefits under the employee welfare program be
increased. To them it serves more as an entitlement than the benefits provided because of their
employment with the organization rather than being tied to their pay level.
Recreational opportunities provided are Satisfactory.
Figure 26
Analysis
In this question 73% employees seem to be fairly content with the recreational opportunities
provided by Telenor which shows that they are satisfied with this component of the benefits.
All sorts of benefits are important part of my salary.
Figure 27
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Analysis
This shows that employees consider benefits as an important of their pay and it contributes
towards pay satisfaction. All the employees consider benefits contributing vitally to their overall
pay package
Hypothesis 2: Benefits are positively related to pay satisfaction
On the whole, it is still not clear whether the employees consider benefits as an entitlement or
related to their pay level. However employees show that they nonetheless think its am important
part of their compensation and are majorly satisfied with it.
Personal intentions or bias of top management influence salary decisions.
Figure 28
Analysis
43.7% agree to the statement; however 31% showed a neutral response to this. The high
percentage of respondents that agreed to the statement shows that some level of biasness by the
top management is perceived to be present in the culture of Telenor.
Decisions about salary are made ethically.
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Figure 29
Analysis
Only a minute percentage of employees (12.5%) believe that the decisions about their salaries
are not made ethically. About 50% of employees were neutral to this statement, where as 31.2%
employees agreed to it. As the percentage of employees who agreed to the statement is more than
the ones who disagreed, we conclude that the decisions regarding the salary of employees are
made ethically at Telenor.
Accurate information (meeting criteria) is used to make decisions that influence
salary.
Figure 30
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Analysis
43.7 % of respondents agreed that Telenor consider accurate information to make salary related
decisions which shows the transparency of Telenors systems. The employees seem satisfied
with its Compensation system as they believe that precise and correct information is considered
for their salary.
My input is obtained prior to making decisions (salary and value adding input).
Figure 31
Analysis
For the statement, My input is obtained prior to making decisions(salary and value adding
input), we receive clashing responses by employees as about 46% respondents believes its true
where as 40.6% disagreed to the statement. So we are unable to conclude the response.
I am given the opportunity to modify decisions that have already been made.
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Figure 32
Analysis
A huge percentage of employees i.e. 62.5% disagreed to this statement. This shows that the
employees of Telenor consider that it doesnt take input from all employees once the decisions
have been made.
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level of percentage i.e. 37% agreed. However, because of the overall high number employees
agreeing to the statement as compared to others, we conclude that Telenor mostly explain the
reasons behind their decisions to the employees.
Concern is shown for my rights.
Figure 34
Analysis
37% respondents believe that concern is shown for their rights at Telenor, which is a slightly
high percentage as compared to 28.1% neutral and 28.1% disagreed response by the employees.
Considering the result, we conclude that Telenor considers its employees as an important part of
the organization and shows concern for their rights.
Variable Pay and Pay Satisfaction
Hypothesis 3: Variable pay is positively related to pay satisfaction.
I am satisfied with the profit sharing policies in this company.
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Figure 35
Analysis
Financial incentives will get people to do more of what they are doing (Calvin, 1998). Profit
sharing policy is a great way to give employees a sense of ownership in the company. However,
in the survey we conducted at Telenor, majority of the employees i.e. 46 % showed neutral
response regarding the profit sharing policies of the company. 26% were satisfied and only 20%
were dissatisfied with such policies at Telenor.
Stock options are exercised exceptionally (when compared to competitors).
Figure 36
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Analysis
The response we got regarding the Stock Options was mostly neutral. 43% of the respondents
were neutral to this question as policy has not yet started in the organization but it is in the
process of its implementation. In the interview we conducted at Telenor, we were told that
Telenor is planning to launch Stock Ownership Plan in 2013. So after our analysis we conclude
that most of the employees showed a neutral response to it as they all are aware of the fact that
the organization knows the importance of such schemes and this is the reason why the
organization is working on it.
Mostly goal based pay concept is exercised.
Figure 37
Analysis
Telenor offers its employees a total package. It believes in awarding its employees according to
the goals achieved by them. The employees here are paid for performance which means that the
individuals are made responsible for contributing in gaining the organizations goal and in return
the employees are rewarded with incentives. According to the survey results, majority of the
employees i.e., more than 50%, agreed that Telenor mostly exercises goal based pay. Such
policies encourage employees to work for the goal assigned to them and help them keep
motivated throughout the process.
Short term incentives are enough to motivate employees towards goal.
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Figure 38
Analysis
Short term incentives are simply a means of reward for hard work. Such employee incentive
programs can be used in a company to boost productivity. From the survey it shows that 40% of
the respondents agreed to it 36.6% disagreed while 23.3% of the employees showed neutral
response. This shows that employees at Telenor appreciate such incentives as it helps in creating
a better work environment and entice the employees to implement their work duties to the fullest
extent possible.
KEY FINDINGS
After the analysis on the information gathered by Telenor, it is clear that the practices followed
by the organization on the whole are satisfactory providing culture that values equity,
competitive pay scales, pay for performance, sense of belonging and recognition. The entire
analysis helped us to link the formulated hypothesis with the information proving the relevance
of the variables to one another.
This research was conducted to find out whether total rewards accumulated by employees result
in their satisfaction with pay or not. The survey was conducted via questionnaires on a sample of
30 employees of various departments and job groups.
According to the analysis done, we find that all of our hypothesis are proven to be true. As
studied in the literature, operational level as well as knowledge workers satisfaction increases if
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compensated appropriately, but for knowledge workers quality of work matters as well which
has been proven by the answers given in the questionnaire.
We can see that pay for performance is mostly exercised in this organization where certain goals
are set which are meant to be achieved. In the total rewards given, 15-20% is variable pay in
Telenor. During the interview conducted, the HR representative mentioned that any employee
who performs exceptionally is rewarded exceptionally as well. The measurement of performance
is done by conducting regular reviews and factors such as ability, aspiration and engagement is
considered for promotion of employees.
Focus of Telenor on the market competitiveness and internal equity is huge. They conduct their
pay competitiveness every year and currently their pay system is anchored on the 75% percentile
in the market. From our research, the perception of employees and that of the company are found
to be aligned which might have resulted in the high sense of belonging to this organization as
well according to the results.
RECOMMENDATIONS
Long-term Incentives:
The external pay equity followed by Telenor emphasizes the fact that the employees are paid
competitively when compared to the employees in other organizations. According to the
information provided external equity is followed. Considering the competition in the Telecom
sector more specific variable pay criteria in terms of long term variable component should be
implemented. The employee interviewed also admitted that more profit sharing and stock options
should be given to employees further strengthening the commitment. Telenor has a fair
understanding of incentive and sorting effects of pay on employee and employer behavior so the
introduction of stock options and profit sharing plans would not be difficult to institutionalize
and the advantages would include:
sense of ownership and improved performance
Linking executive pay to company performance ultimately increasing
stockholders' returns
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The introduction of long-term incentives would further enhance the retention power of Telenor
which would help them to continue the lead market pay philosophy. The intrinsic and extrinsic
satisfaction of employees at Telenor is positive as the pay form has a balanced fixed and variable
component so the addition of long term incentives would further benefit the organization.
Communication:
The pay delivery model used in Telenor inferred is a hybrid of broadband and broad grade as the
zones are identified. The pay delivery is aligned with the pay philosophy, pay form, pay
assessment and pay plan design. As employees in the organization are skeptical about:
the pay progression
fair reward given compared to effort (large percentage believes so)
Employees are skeptical about it as it is inferred that the benefits of broad band and broad grade
implemented is not communicated properly to the employees. The pay delivery form emphasizes
the following which should be communicated to employees:
Involves collapsing salary grades into a few broadband each with a sizable range in
the case of Telenor it has specified 6 bands which progression and lateral movement
defining zones too
Pay for performance
Skill / competency development
provides greater latitude in management pay decisions for exceptional contributors
within zones and bands
promotes lateral moves or in-grade promotions
reduces use of promotions to increase pay
promotes career development / learning
focus on the person instead of the job
If benefits of the hybrid pay structures are communicated to the employees completely to would
be more satisfied if again measured on the same parameters used in the questionnaire. Hence the
communication can well satisfy the concerns of employees in terms of progression and gains if
they remain with Telenor.
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Participative Pay Plan Design:
According to the prevalent culture in pay system analyzed, pay plan design should be
participative as it would be aligned with the pay philosophy at Telenor. According to the
information we infer that the employees feel their feedback for decisions implemented is not
taken. Besides there is a clash of agreement noticed when input to make decisions is required
(salary, value adding). It is therefore recommended that the process should be more participative
and should strike a balance of centralization and decentralization. Also the percentage of
employees agreed to the reasons not communicated properly for the decisions taken about them
is high, from which we infer unbalance of centralization and decentralization.
Transparency:
Transparency should be exercised in an organization as lack of transparency lead to demotivated
employees with low trust. The employees should be clearly communicated about the procedural
justice as in case of Telenor we infer that top management exercises bias which if continued
would influence organizational effectiveness. Such situations if continued also raise politics in
organization which can filthy the culture at large.
LIMITATIONS
There exists certain limitation in this study. Firstly a small sample size was used so an increased
validity of information imparted might not be seen. Secondly there were certain questions that
could not be asked as to the restriction by the organization to its employees on revealing certain
aspects of their pay. Lastly the study is restricted to the workings of Telenor in Pakistan only and
the results cannot be applied to the organizations worldwide.
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