Team-build Compensation Policy - Essay Example

TEAMBUILD COMPENSATION POLICY - INTRODUCTION VISION A fair, consistent and comprehensive compensation policy for all levels of employees within the organization. MISSION To develop a complete Compensation Policy on Salary Structure, Benefits and Recognition in order to create a rewarding, wholesome and motivating environment for all employees. OBJECTIVE To establish and review Compensation guidelines and procedures To ensure the uniform application of these guidelines and procedures to all eligible employees within the organization. The three key areas covered comprehensively in this Policy are as follow: Salary Structure Benefits Recognition SECTION A: SALARY STRUCTURE AND REWARDS 1.0 SALARY STRUCTURE The purpose of the formal Salary Structure is to ensure that salaries of Teambuild’s employees are fair and competitive compared with market-based range, and that employees’ salaries reflect their job performance. Teambuild’s employee salaries are set at the mid range of the market-based range. The Basic Salary Structure of the organisation is based on the following criteria: 1. Job Title 2. Staff Grade 3. Salary Scale Within the organisation, the Job Title and Salary Scale will generally determine the base pay of an employee, whereas the Staff Grade will determine the types of allowances an employee will be entitled. Monthly Variable Component (MVC) is built into employee’s basic pay. (Refer to Appendix - A) 1.1 JOB TITLE 1.1.1 A Job Title dictates the position of the employee in the organizational hierarchy. Job title will determine employee’s Staff Grade and Salary Scale. It is generally associated with a Job Description (Refer to Appendix - D) that details the persons authority, scope of work, duties and responsibilities, minimum knowledge and skills needed of a position. 1.1.2 A Job Title appears in the employment, confirmation, promotion or re-designation letters and applies to all in-house official correspondences and staff benefit scheme. 1.1 STAFF GRADE 1.1.1 Staff Grade is a grouping of Job Titles. (Refer to Salary Scale, Appendices A, B & C). 1.1.2 Staff Grade is generally linked to a Salary Scale based on staff level of competency. 1.1.3 Staff Grade determines the types of staff benefits and allowances. 1.1.4 Staff Grade illustrates the entry appointment of a job and the career advancement within the organisation. It also defines the authority level and the reporting relationship within the organisation. 1.2 SALARY SCALE 1.2.1 Salary scale is an indicative range on the minimum and maximum salary for each Job Title. 1.2.2 No further salary increments are to be expected should an employee’s salary reach the maximum salary ceiling. Consideration for inflationary pressures, however, may be given. 1.2.3 The Salary Scale will be reviewed and updated by the Compensation Committee based on the market trend once in every two years. 1.2.4 Salary Surveys will be collected by HR Department yearly for bench marking purpose. (Refer to Appendix -___ ) 2.0 REWARDS The company rewards employees by recognizing their performance and contribution to the Company in a given period. The compensation, in turn, is according to the impact of the individual performance on overall annual financial performance. The Rewards Policy is based on clear direction and accountability. 2.1 PERFORMANCE REVIEW (MID YEAR AND YEAR END) 2.1.1 The Company conducts Performance Review twice a year, i.e. in June (for the purpose of promotion and salary adjustment) and in December (for the purpose of paying out variable bonus) each year. 2.2 SALARY REVIEW 2.2.1. The Salary review cycle is carried out yearly. Changes in staff salaries are dependent on the following factors: Company’s annual performance, employee’s individual performance, Industrial demand and recommendation by the National Wages Council, whenever applicable. 2.2.2 The Salary review shall include any changes made to the current salary package a) due to a promotion (see Appendix - D), b) salary adjustment (not due to a promotion) or c) any other reason decided by the management team. 2.2.3 Eligibility: Only permanent employees, confirmed employees and those who have worked with the Company for at least six months shall be eligible. Employees under probation and contract employees will be excluded from the annual adjustment exercise. 2.3 BONUS 2.3.1 The Company pays a variable bonus to eligible employees according to the bonus metrics defined by the management (see 2.4). 2.3.2 The payment of variable bonus is made twice a year: the first pay out together with the December’s payroll and the final payout usually together with the March’s payroll. 2.3.3 Eligibility: Only permanent and confirmed employees who are active on the Company’s payroll at the time of payout shall be eligible. Confirmed employees who have less than one year of service with the Company during that calendar year shall receive a pro-rated amount. Employees under probation and contract employees will be excluded from the annual bonus payout exercise. 2.4 BONUS METRICS 2.4.1 Company Yearly Financial Performance and Ability to Pay: The Company sets its Key Performance Indicators (KPIs) every financial year during the annual budgeting process. The two main components of the Company KPIs are Revenue Target and Operating Profit before Tax and Finance Expenses based on the unaudited year-end management accounts which shall be approved by the Managing Director/CEO. 2.4.2 Individual Performance: Performance Assessment framework is driven by the Company’s KPIs which are categorized under 3 major perspectives namely Achievement¹ which is performance and responsibility-based, Initiatives² which is Program/Task-based (usually over a period of program life-span that can be more than 3 months) and Behaviour and Personal Skills³ which is attitude and competency-based. (Refer to Appendix - E) 2.4.3 Economic performance and Market factor: Market factor is set by the top management of the Company after considering the current economic situation and future perception of the local economy for the next 24 months. Singapore’s GDP will be used as a benchmark in this exercise. Five economic categorizations will be considered: Boom (Boost of economic activity), Growth (Combined economic growth across all industries and sectors), Sustainable (Sustained and stable Economic Activity), Sunset (Period of slow-down, right before recession) and Recession (Negative economic activity and output across industries and sectors). The factors to be applied at each year of review shall be recommended by the Compensation Committee and reviewed and approved by the Managing Director/CEO. 2.0 Bonus Computation/Pay-out Table: 2.1 2.1.0 2.1.1 2.1.2 Bonus pay-out Table lays out the various pay-out factors which are determined based on percentage of Company KPI targets met (Company’s Financial Performance), results from the Performance Appraisal of the individual (Individual Performance) and market factor (Economic Performance and outlook). The Bonus pay-out Table shall be computed and tabled out by the Human Resource department, which shall be submitted to the Compensation Committee for review and endorsement and then forwarded to the Managing Director/CEO for final approval. SECTION B: BENEFITS The purpose of establishing, evaluating and maintaining a standard employee benefit guideline is to ensure that employee’s welfare is taken care of and he/she is motivated and contented to work. These benefits are to be applied consistently within the company. 1.0 LEAVE Definition: The period of time during which an employee has requested and been granted permission by his/her supervisor to be absent from work or duty. 1.1 Annual Leave 1.1.1 Confirmed employee will be entitled to fourteen (14) days annual leave. 1.1.2 Employee with less than one year’s service at the end of a calendar year will be entitled to a pro-rated annual leave. Annual Leave entitlement will be pro-rated for new and resigning staff. 1.1.3 Leave brought forward from previous calendar year is to be cleared by 30 June of the following year; otherwise leave will be forfeited/cancelled automatically by the E-leave system. 1.1.4 For consecutive leave, the total maximum no. of paid and unpaid leave cannot exceed 20 days. 1.2 Sick Leave / Hospitalization Leave 1.2.1 Confirmed Employee shall be entitled to the following paid sick and hospitalization leave: Sick Leave - 14 days per calendar year Hospitalization Leave - 60 days including sick leave 1.2.2 All applications for paid sick leave and hospitalization leave must be supported by appropriate medical Certificate. 1.2.3 Sick leave entitlement will be pro-rated for new and resigning staff. (See Appendix - G) 1.2.4 If an employee is on leave (paid or unpaid) and subsequently falls sick, he/she is not allowed to offset Sick leave with the earlier leave which has already been applied. 1.2.5 Sick leave will be automatically forfeited if not consumed within the calendar year. 1.3 Marriage, Paternity & Compassionate Leave While there is no statutory entitlement to such leave, the company grants the leave based on individual eligibility. 1.1.1 Marriage Leave: Each confirmed employee is eligible for five (5) days marriage leave on the occasion of his/her lawful marriage. 1.1.2 Paternity Leave: All confirmed male employee shall be entitled to one (1) day paid paternity leave on the birth of their child. It is to be taken within 5 days from date of birth of child. 1.1.3 Compassionate Leave: Compassionate leave will be granted to confirmed employees on any of the following circumstances; Death of a legal parent, spouse or child. Death of parent-in-law, grandparent or grandchild. Death of a sibling. Any Employee applying for compassionate leave shall be granted maximum of three (3) consecutive days on any one circumstance. This shall be inclusive of rest days and public holidays. 1.4 Maternity Leave The Company has a clear policy on allowing proper Maternity Leave to new mothers. For the detailed policy, refer to Appendix – H of this document. 1.5 Childcare Leave & Enhanced Childcare Leave For any necessary Child Care obligations of employees, the company’s HR department will make decisions on individual basis. For detail, refer to Appendix – I. 1.6 Examination Leave 1.6.1 For company sponsored courses only, paid examination leave will be granted to confirmed employees. However, this leave will not be applicable if the exam is conducted after office hours. 1.6.2 All applications for the examination leave must be supported by documentary evidence and submitted to the HR Department at least three (3) days prior to the examination. 1.7 In-Camp Training Leave 1.7.1 The company will grant paid National Service In-Camp training leave to employees – whenever possible – who are called up for Reservist Training. 1.7.2 Applications for such leave submitted to HR must be accompanied with the following (upon receipt): Call Up Notice Make-up Pay Form 1.7.3 If work emergencies and obligations do not permit the leave to be taken, the company will apply for deferment of In-Camp Training on behalf of the staff. 1.7.4 For Application procedure and approving authority, refer to Appendix – F. 1.8 Notification Period Requirement for Leave Application Leave periods and the prior notification requirements are as follows. For leaves: i. 4 days & above - at least one week’s notice ii. Up to 3 days - at least one day notice Employees on Probation are required to submit the hardcopy of the Leave Application form to their supervisors. All Confirmed employees will apply for leaves through the E-leave portal. In the event an employee proceeds with the leave without prior approval from the superior, disciplinary action will be taken against them. This is only acceptable in extreme emergency situations. 1st Offence A memo will be issued; Salary for the number of days of absence will be deducted as this leave will count towards No Pay Leave. 2nd Offence A warning letter will be issued; Salary for the number of days of absence will be deducted as this leave will count towards No Pay Leave; two weeks’ worth of bonus payable will be further deducted. 3rd Offence A termination letter will be issued and implemented 2.0 ALLOWANCES 2.1 Transport Allowance/Reimbursement 2.1.1 Employee receiving monthly Fixed Transport Allowance is NOT entitled for any transport claim. 2.1.2 Employee who is required travelling with public transport to perform company duty is entitled for Transport claim. All claims must be supported with tickets (BUS/SMRT/Taxi etc) & shall be claimed under petty cash. 2.1.3 For all HQ Staff who are required to work after hours, Taxi fare is claimable after 10p.m. Taxi receipt is required for reimbursement. 2.1.4 Non-work related travelling expense and travel from home to office and vice versa are not claimable. 2.2 Hand phone Allowance 2.2.1 The employees who are mandated to use hand phone due to work nature are entitled for a fixed Hand phone Allowance, according to the staff Grade Chart. (Refer to Appendices A, B & C for details) 2.2.2 All other employees will be granted hand phone allowance on a case-to-case basis, subject to the written approval by Head of Department. The reasons for such an approval may include non-desk bound work, lack of available land line, specific job requirement and others. 2.2.3 The hand phone Allowance will be paid monthly together with salary. 2.3 Hardship Allowance 2.3.1 Any Employee from the Construction Site who is required to work for 2 or more projects at the same time or required to work for 2 shifts (incl. night shift) will be entitled for Hardship Allowance. The amount is issued based on case-by-case basis. 2.3.2 Allowance for Ad-Hoc Assignment: Employees assigned on specific, temporary tasks on ad hoc basis may be applicable for Hardship Allowance. Eligibility and amount of allowance will be decided jointly by HR and the Department head. 2.3.3 The minimum ‘affected’ duration for being considered and eligible for the hardship allowance is consecutive four weeks. 2.4 Site Attendance Allowance 2.4.1 All Employees working at construction site who are under Work Scheme 2 are entitled to claim a fixed Attendance Allowance per week if they are working for full day on Saturday and/or Sunday. (Refer Appendix - J) 2.5 Overseas Allowances 2.5.1 Staff who is required to travel overseas due to work assignment will be entitled for overseas expenses claim. The allowance includes: Transportation (Air Ticket including airport tax & local bus/coach/taxi fares) Accommodation (Hotel room ONLY) Meal 3.0 MEDICAL 3.1 Outpatient Treatment 3.1.1 The company shall reimburse the medical expenses of each confirmed employee, amount capped at $300.00 annually. These expenses may be for the following: Dental and Health Screening Any Outpatient Clinic or Polyclinic A & E Consultation Specialist Treatment Hospitalization Treatment Medical Consultation in Singapore and Malaysia 3.1.2 The outpatient Treatment is extended to the immediate family members of the employee and the amount not consumed shall not be carried forward to the following year. 3.1.3 HR Department shall assess the claims based on the supporting receipt and disburse the claim on a quarterly basis of the period year. It will be credited to the employee’s Bank Account. The amount will be prorated in the case of new / resign staff. Any overpayment will be recovered accordingly. 3.1.4 Top Management personnel (Staff grade B2 and above) are insured under the Group Outpatient Plan and will enjoy the medical benefit/treatment stated under the Plan. Premium of this Plan is paid upfront by the company and so, no further reimbursement of outpatient medical expense is allowed. 3.2 Medical Check-up 3.2.1 Employees are required to carry out the necessary medical checkup as per statutory requirement by the company appointed doctor. 3.2.2 All pre-employment medical checkups for probationary staff shall be conducted at least 1 week before confirmation date. 3.2.3 The company shall reimburse foreign employee expenses for medical checkups, provided the employee visited the General Practitioner with the consent of HR. In such case, it is to be claimed within 30 days under petty cash from HR Department. 3.2.4 Expenses for medical check-up for PR application will NOT be reimbursed. 3.3 Medical Health Check up 3.3.1 Prior to confirmation, all new staff is required to undergo a pre-employment health screening by the general practitioner appointed by the company to ascertain their fitness for the job. The expenses for the health screening will be borne by the company. 3.3.2 Subsequently, the company shall provide a yearly basic health screening supervised by the company-appointed doctor. This will include: Small Chest X-ray BMI, BP Lipid profile Blood glucose This is to help employee detect any abnormality. Should there be any abnormal results; the company will recommend staff to any recommended follow up review required. 3.3.3 The company shall provide executive health screening once in every two years with the value of $600/annum. A copy of the final Report will be retained in HR File for company reference. 4.0 INSURANCE COVERAGE 4.1 Work Injury Compensation Insurance 4.1.1 The company shall take up a Work Injury Compensation Insurance and all employee including managerial, clerical, admin staff and all workmen/manual workers regardless of earning will be covered under this policy during the course of employment only (i.e. During official working hour). 4.1.2 For Policy coverage and indemnity of this plan, refer to Appendix L. 4.2 Group Personal Accident Insurance 4.2.1 The company shall take up a Group Personal Accident Insurance* for all confirmed employees. Under this policy, the employees will be covered for accidental bodily injury 24 hours and worldwide during the period of insurance. 4.2.2 For Policy coverage and indemnity, refer to Appendix – M. *The sum insured varies depending on Staff Grade 4.3 Group Hospital and Surgical Insurance 4.4.1 Confirmed employees from Staff Grade B2 & above shall further be covered under Group H&S Insurance Policies. 4.4.2 For Policy coverage and indemnity of this plan, refer to Appendix N. 5.0 OTHERS BENEFITS 5.1 Social & Recreation Club Events 5.1.1 The Company’s Social & Recreational Committee (SRC) will, from time to time, organize company social events and gatherings. Staff & their families are encouraged to participate. The purpose of such event is to create bonding between staff. 5.2 Marriage “Hongbao” 5.2.1 The company will issue “Hongbao” to confirmed employees on the event of their marriage. (Refer Appendix - O) 5.3 Childbirth “Hongbao” 5.3.1 The company will issue “Angpao” to confirmed employees on every single childbirth they have. (Refer Appendix - O) 5.4 Condolence Money 5.4.1 The company will issue condolence money “Bai Jin” to confirmed employee in the event of the: Death of a legal parent, spouse or child. Death of parent-in-law, grandparent or grandchild. Death of a sibling. 5.5 Hamper/Wreath 5.5.1 It is Company Policy to send Hamper to confirmed employees on the following occasions: Child Birth Hospitalization 5.5.2 Wreath will be sent in the wake of death of family members, as per 5.4.1. SECTION C: RECOGNITION To acknowledge and recognise the exceptional and outstanding performance of the employees and their exemplary contribution to the company in any way, the following three categories of Awards will be rewarded to employees. 1. EMPLOYEE AWARDS This award aims to encourage employees’ behavioural convergence towards company’s core values and employee values. 1.1 Long Services Award 1.1.1 The long service award aims to recognise employees’ loyalty and dedicated service to the company. It is given at every interval of 5 years commencing from the date of joining. 1.1.2 Cash vouchers and a service plaque will be presented at the company annual dinner. 1.2 Model Employee Award 1.2.1 The Model Employee Award is awarded quarterly to promote the four Employee Values set by the company and to recognise model employees who have exhibited these values in the course of their work. 1.3 Service Excellence Award 1.3.1 The Service Excellence Award aims to recognise customer service-centred environment for front-line staff when dealing with end-users, consultants, and clients. The award winner will receive token, together with a complimentary letter from the management. 2. PROJECT AWARDS These awards aim to encourage project teams to identify area of improvement and innovation during the execution of construction project. These are based on an assessment by a statutory board or other prestigious organisation for the recognition of excellence in construction projects undertaken by the company. 2.1 List of Common Project Awards: BCA Construction Excellence Awards HDB Construction Safety Award HDB Quality Award HDB Earth Control Measure Award HDB Housekeeping Award Workplace Safety & Health Performance Awards (WSGPA): Excellence Award (WSHPA) Gold Award (WSHPA) Silver Award (WSHPA) Safety and Health Award Recognition for Projects (SHARP) And or other awards by statutory board or other prestigious organisation 2.2 Reward Scheme for Project Staff when Project received Awards 2.2.1 Type of Project Awards & the weightage (W1-W4*): All project staff involved in the project will receive reward when the project has been awarded the following external awards: HDB Quality or Safety or Housekeeping Award (W1) Final CONQUAS score ranked as Top 5 in the (W2) project category, e.g. Private Housing, Landed Housing, etc BCA Construction Excellence Award – CEA (W3) MOM Awards – WSHPA (W4) *Note: W= Weightage, is assessed based on the difficulty in obtaining such award 2.2.2 Eligibility of Project Reward Employee who meets all the following conditions is eligible to receive the project reward. Employee is deployed full-time to the particular project, excluding Project Directors. Employee is a monthly-rated Staff. Daily-rated worker is not eligible. Employee is a confirmed staff. Part-time, temporary, probationary & contract staff is not eligible. For completed project. Employee who met above criteria must stay in the awarded project for a min 50% of the total project construction period. i.e. stay with project for min 10 months if the project contract period is 20 months. For ongoing project, the construction period is counted from the project commencement date until the date of the award is announced or awarded. 2.2.3 Rewards Distribution Regardless of staff rank or position, all eligible employee (as per 2.3.2) shall receive the following upon successful achievement of award: 1. Each eligible employee will receive a cash voucher (amount will be determined by management during that year). Total cash value = Amount x Weightage. (e.g. Amount set for 2009 is $200, for W1 total cash value is $200, for W3 total cash value is $600) 2. Appreciation letter from the company duly signed by Managing Director & Construction Director. 3. Recognition by the management and peers during the company Dinner & Dance function where the award will be presented. 3. COMPANY AWARDS The Company Awards are presented to the company by external bodies in recognition of excellence in different areas of business operation. These awards aim to spur the leadership team of company to ensure sustainable business growth. 3.1 List of Common Company Awards: Enterprise 50 Award Singapore Prestige Brand Award People Excellence Award Singapore Quality Award Best Employer Award HR Award 3.2 Rewards A congratulatory memo will be announced within the company and selected employees who contributed to the achievement of the award will be invited to attend the dinner during the award ceremony. ABOUT THIS POLICY Scope of Compensation Committee This Compensation Policy is established and reviewed by the Compensation Committee. It will serve as a guideline for the Human Resource department to perform their operations pertaining to employees’ welfare, recognition and benefits. The Committee will meet yearly to review the guidelines. The Compensation Committee shall consist of the following personnel: HR Director or Representative Construction Director or Representative Finance Director or Representative Coverage All employees’ salaries shall be paid within the pay ranges established in accordance with the guidelines, with the exception of employees in the A1 & A2 employee grades, contract & part-time employees. Interpretation The Human Resources Department is responsible for providing interpretation of these compensation guidelines. Therefore, all concerns and queries must be directed to the HR department for resolution. Enforcement The Human Resources Department shall ensure that these guidelines are enforced and applied uniformly and fairly by all Heads of Department. All pay actions shall be subjected to audit by Human Resources Department. Department Head’s Responsibilities: All Heads of Department shall ensure consistent application of the guidelines within their departments and all pay actions shall be administered in a fair and equitable manner using this compensation policy. Heads of Department shall not increase salaries of existing employees if the hiring, promotion or reclassification of other employees creates salary inequities within existing employees. This refers to the employees of the same job title. Read More