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A Term Paper on Compensation Management of Transparency International Bangladesh (TIB)

A term paper submitted for the satisfaction of the requirements for the course Compensation Management (HRM- 705)

Prepared for: Prof. Dr. Md. Mohsin-Ul Islam Institute of Business Administration University of Rajshahi

Prepared By: Grpup-1 MBA (Day) Program 4th Batch, 4th Semester Ali Azim Muhammad Nasim - D090002 Jannatul Ferdous - D090003 Kala Chand Karmaker - D090004 Iftia Wahab - D090007

Institute of Business Administration University of Rajshahi February 06, 2012 1

INTRODUCTION
The rise in importance of global markets over the last two decades of the twenteth century and into the twenty first century has placed greater stress on organizations regarding their ability to compete and be profitable. The need to be competitive is critical to all organizations profit and nonprofit, privately aowned, or government operated. To successful, these organizations must provide high quality goods and services to their Clints in a cost effective manner. A major cost for all organizations in providing needed goods and services is their labor costs. In organizations, competitive pressures, both internationally and domestically, force managers to consider the affordability of managers compensation decision. Compensation refers to all forms of financial returns, tangible services and benefits employee receives as part of an employment relationship. Different organizations have various forms of pay - total compensation (base, incentives, and benefits) and relational or psychological returns (learning opportunities, status, challenging work, cost of living adjustment and so on) with the objectives of achieving and sustaining competitive advantage through efficiency, fairness and compliance by means of internal and external equity in pay determination, employee contribution and management decision. In this knowledge based world compensation management the most important HRM concern became a pivotal issue for the organizations to cope with the competitive environment in the arena of business world.

Origin
This term paper has been made as the course requirement of MBA program. The term paper has been assigned to our group consists of four members by the course instructor Prof. Dr. Md. Mohsin-Ul Islam, IBA, University of Rajshahi. This term paper contains the Compensation Management of Transparency International Bangladesh (TIB).

Objective
The objective of the term paper is to acquire knowledge practically about compensation management practiced in an organization. Besides, obtaining knowledge and experience we tried to give an idea to the readers about the pay structure of Transparency International Bangladesh.

Scope
We confined our discussion to the pay structure of Transparency International Bangladesh. We will not compare the compensation policy of TIB with others.

Methodology
Types and sources of Information It explains sources of data to prepare the term paper; the following sources of data where used: Primary source of Data: A very primary source of data has been used while preparing this term paper. Primary data, information is collected as follows; Communication Interviews Surveys/ questionnaires

Secondary sources of data: Publications Internet Website

AN OVERVIEW OF TRANSPARENCY INTERNATIONAL BANGLADESH Transparency International Bangladesh (TIB) is an independent, non-government, non-partisan and non-profit organization with a vision of Bangladesh in which government, politics, business, civil society and the daily lives of the people shall be free from corruption. In the context of the international movement against corruption, TIB is the national chapter in Bangladesh of the Berlin-based Transparency International (TI), and accordingly, TIB partners and cooperates with TI and its chapters worldwide. However, TIB is not a subordinate body of TI. TIB is committed to values of democracy, justice, rule of law, transparency, accountability, integrity and impartiality. TIBs mission is to catalyze and strengthen a participatory social movement to promote and develop institutions, laws and practices for combating corruption in Bangladesh and establishing an efficient and transparent system of governance, politics and business. (Source: Governance Manual and Code of Ethics, TIB, 2005) The present Human Resource Manual is based on the above vision, values and mission of TIB. It provides the framework of guiding principles and practices aimed at ensuring the highest standards of efficiency, integrity, accountability and transparency in managing TIB. The HR Manual is a living document, subject to amendment with the approval of the Board. Its practical value and importance lies in the availability of resources and commitment of TIB in applying these standards in its work. Where the provisions of this HR Manual are inconsistent with the laws of the land or the Trust Deed of TIB, the provisions of law or Trust Deed, as applicable, shall, prevail over provisions contained herein. The present manual presents the standard Human Resource Policies and Procedures of TIB. These procedures and rules shall apply to all employees of TIB subject to availability of resources. The provisions of this manual shall be applicable to project(s) provided financial implications are covered within the project(s) funds available from project and other approved sources. The Board of Trustees of TIB shall have the right to bring required and relevant changes in any of the provisions if necessary.

SOME RELEVANT DEFINITIONS


1. TIB/Organization means Transparency International Bangladesh Chapter. 2. Board of Trustees means the body that established TIB under a Trust deed. It is the decisions making body of the Trust, but delegates day to day management decisions to ED of TIB. 3. Chairperson means Chairperson of the Board of Trustee. 4. Executive Director means the Executive Director of TIB either engaged or appointed by the Board of Trustees. 5. Appointing Authority means the BOT; the Executive Director of the TIB appoints in the name of the board as per delegation. The appointments to the posts of Director and ED remains with the Board. 6. Competent Authority means BOT/Executive Director/Directors or any other officer designated by the BOT/OMC to exercise the powers under these rules. 7. Operation Management Committee (OMC) includes the Executive Director, and Directors or any other staff members co-opted by ED with the approval of BOT mainly in the absence of Directors. 8. Post means a sanctioned post in the organization including its project. 9. Employee means a staff or officer of the TIB whether probationary or confirmed. 10. Basic Salary means the scale pay, excluding benefits and allowances, which have been sanctioned by the appointed authority for a post held by an employee. 11. Allowances mean additional payments made to employee in excess of their basic salary. 12. Salary means the amount, inclusive of the benefits and allowances, drawn monthly by an employee as the pay and allowance that has been sanctioned for the post held by her/employee. 13. Duty means service of an employee including leave authorized by competent authority. 14. Holiday means a day closed to by an order of TIB including national holidays. 15. Advisor/Consultant means such individuals(s), either Bangladeshi or foreign, appointed on specific terms & conditions as determined by the council on a special contract for rendering consultancy or some advisory or technical function.

CLASSIFICATION OF EMPLOYEES
TIB Staff are classified into the following groups: Core Staff A Core staffs are those who are so designated by the Board. Project Staff An employee who has been engaged for work in a TIB project shall be considered as project staff. Contracted Staff An employee who has been engaged for work which is essentially of temporary nature or for a contractual service which is likely to be finished within a specific limited period of time. Benefits and other entitlements of such staff shall be regulated as per their contract with TIB. A part time employee hired for work for less than 40 hours per week shall be treated as contracted staff. Probationer An employee who has been employed to fill a staff vacancy but who has not yet completed her/his probationary period. Casual Staff A casual staff is a daily wage employee on a no-work no pay basis.

STAFF SALARY AND BENEFITS


Salary and Benefits: Principles TIB tries to offer employees competitive salary to attract and retain them within the organization. The organization looks at both internal and external equity for salary determination. The compensation philosophy rests on the assumption that a sound compensation strategy within the available resources can make a difference in achieving desired goals and objectives of the organization. TIB generally follows the principle of equity in salary determination. Salary increment/Salary rise Salary increments are tied with performance. Annual performance appraisal of an employee shall be the basis for annual salary increments. a) An employee is entitled to have at least an annual increment at a rate determined by the Board of his/her current basic salary after his/her annual appraisal subject to satisfactory performance and fulfilling the criteria stated in relevant sections of Performance b) Appraisal. The Board resolved that members of the staff whose performance was found to be below expectation should be subjected to disciplinary action, while those who performed with exemplary commitment and excellence should be rewarded. c) The salary structure shall be renewed from time to time by the Board. Career Development Organizational structure will provide opportunity for career development within TIB, as and where applicable. Position, Level and Salary Structure a) TIB has a prescribed salary structure/pay scale duly approved by the Board of TIB. b) All regular and project staff positions in TIB are defined (subject to Boards approval) under level I to XI. c) Structure of the staffing and salary is shown in the table # 3.4.1, (considering Basic Salary of step-1of each level as an example) which is subject to change with COLA in each year. d) There will be a maximum of 20 steps in the salary structure of each position considering the rate determined by the Board. e) In the event an employee is already in the last step of a level, shall remain in the same step unless or until any change of his/her level or the change of the organizations salary structure is made, or otherwise determined by the board. 7

Salary Matrix for Regular Staff Members

[3] In present salary matrix each level of position has 20 steps considering @ 3.5% increment on total basic salary of previous step.

Salary a) All staff of TIB shall be compensated on a monthly basis as per the approved salary structure. b) Staffs who are on temporary or short-term contract status shall receive salaries inaccordance with their respective terms and conditions. Basic Salary The Basic Salary is consists of basic pay plus COLA to be determined in each year: a) The standard working hours is 37.5 hours per working week. b) The other allowances shall be calculated based on 30 days. c) Monthly remuneration of cleaners or such part time staff employed on regular basis shall. Tk.1, 500/= subject to maximum 25 hours weekly, they will get festival allowance.

Cost of Living Adjustment (COLA) COLA of basic salary will be applicable to all confirmed staff with effect from January 01, every year of a rate to be determined based on increased cost of living subject to boards approval. Review of Salary Structure The Salary Structure may be reviewed periodically or in each project cycle whichever is appropriate, to address the change in the market and depending on the TIBs fund position. House Rent Allowance a) All employees of TIB shall be granted house rent allowance at rates prescribed by the Board from time to time. b) Existing rate and practice are as follows: I. II. 50 percent of the basic salary for all employees, except those in grades I IV for whom this rate shall be 60%. This rate may be changed with the decision of the Board depending on the circumstances.

Conveyance Allowance a) All regular employees of TIB shall be paid a monthly conveyance allowance at the rate prescribed by the Board. b) Executive Director is entitled to full time transport facility. Deputy Executive Director and Directors are generally entitled to get vehicle support during office time including pickup and drop facility. However, conveyance allowance will not be applicable for the Directors who will avail pickup and drops facilities. c) All employees of TIB shall be paid actual transportation costs for official trips; officials are entitled to use TIB vehicles in Dhaka city subject to availability and approval and reimbursement for personal usages as per transport manual. Medical Allowance All regular and project employees of TIB shall be paid a fixed monthly medical allowance as prescribed by the Board. Childrens Education Allowance Childrens Educational Allowance shall be paid to confirmed employees falling in grade I - IV at the rate of Tk. 200 per month per child up to two children (age limit from 5 to 18 yrs.). Overtime

TIB normally discourages overtime work unless there is urgent need. Overtime benefits shall be allowed only to TIBs staff for falling in grade I IV, who shall be entitled to get overtime allowance for extra work beyond normal office hours (42.5 hours per week). However, total overtime hours should not exceed more than 120 hours for Support Staff and 150 hours for Drivers in a month. Hourly rate for overtime will be twice of their hourly basic salary. Salary Deduction TIB reserves the right to make deductions from an employees salary for the following: a) Provident Fund contribution by the employee, as and when created and rules governing the same are framed. b) Unauthorized absence or leave without pay. c) Recovery of over payment of salary, allowance, benefits or loan/advance. d) Damage to, or loss of, materials expressly entrusted to the employee for custody, or loss of money for which s/he is accountable, when such damage or loss is directly attributable to his/her negligence or default. e) Use of office facilities on payment, such as, NWD/ISD phone calls, ISD fax, transport etc for personal reasons. Staff Income Tax All employees for TIB, if applicable, are liable to pay income tax as per rules of the Government of Bangladesh. TIB shall deduct the amount of tax payable on salary at source before payment and deposit the same to the Treasury on monthly basis. Such deductions shall be intimates to the concerned employee.

Gratuity or End of Contract Benefit


Gratuity All confirmed employees shall be entitled to gratuity as and when provisions are created and rules are framed. End of Contract Benefit Until such time as Gratuity has been introduced, Staff members who will work till the end of a project will get end of contract benefit equivalent to at the rate of twice of their last drawn monthly total basic salary multiplied by the number of years served. However, Staff who have completed at least 30 months of service with TIB and leave TIB before the end of a project will be entitled to receive such benefit at the rate of their last drawn monthly total basic salary multiplied by the number of years served. For outgoing staff those who are appointed for less than 30 months, decision regarding EOC benefit shall be made by the Board on the basis of recommendation by the ED.

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Festival Allowance All confirmed employees, who will observe their major festivals during their employment with TIB, shall be entitled to have festival allowance in proportioned to their prevailing basic salary (Basic pay plus COLA) at the rate stated bellow. For Muslim Staff : 1.5 months basic salary for level I, and 01 months basic salary for Level II to XI in each Eid. For non Muslim staff : Three months basic salary for level I, and Two months basic salary for Level II to XI in one installment during a major festival (like Durga Puja/ Christmas/ Boishakhi Purnima etc) as declared by the staff. The festival bonus shall be given at least ten days before the festival. Festival Allowance is directly associated with the observance of festivals during the employees association with TIB; hence it will not be payable for the staff who will be separated before the Festival. Voluntary Contribution to TIB All TIB staff is expected to voluntarily and unconditionally contribute one percent of their gross salary for the sustainability of TIB. The rate of this contribution may be higher if any staff member voluntarily so decides. However, it is not mandatory for any employee to make this contribution. A separate concept paper shall be prepared for effective management and utilization of the fund created by this contribution. Telephone Allowance TIB will provide a mobile Phone SIM (in line with the corporate agreement of TIB with service provider) to all staff member (except support staff) of TIB after his/her joining. Tk.2,000/- or 50% of the price of a mobile phone set, whichever is less, will be reimbursed to an employee, subject to submission of original invoice of the same. If any employee purchases a mobile set of costing less than Tk.4, 000/- fifty percent of purchase cost will be reimbursed in such case. If any employee leaves TIB before one year service from the purchase date of telephone set s/he has to take the used set and refund full TIB contribution. Staff who will use telephone set for more than one year can take phone set without refunding any money. Mobile phone set shall remain in the custody of the designated employee, who in the event of any damage or loss of the phone will either replace the same on personal account or accept deduction from his/her salary to recover the purchase cost of the damaged/lost/stolen phone. Exception to the above can be made under special circumstances subject to the approval of the Executive Director.

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Staff members shall be entitled to get telephone allowances to cover the monthly mobile telephone bills within the ceiling specified in the following table. Allocation of Telophone allowance:

Any amount exceeding the ceiling shall be borne by the concern employee or shall be deducted from salary. Any exception will require approval of Divisional Head. For officers maintaining intensive contact with field offices and during special events exceptions for extra payments can be authorized by the ED.

Travel Allowance
Domestic Travel Employees and consultants may be required to undertake travel on the TIB work related business. Authorized travel within Bangladesh is considered domestic travel. It commences from a specified location or residence to one or more specified destinations and return to the assigned departure point. Authorization Normally travel plans shall be prepared and approval obtained on monthly basis. When the employee or consultants is required to travel, he or she must submit Travel Request Form (TRF) to Finance Department through his or her supervisor at least 3 days before the travel commence. Travel Advance The estimated cost of the trip may be paid to the traveler as travel advance. The traveler shall 12

indicate the amount of money on the TRF if an advance is required. The respective Divisional Head shall approve the advance request for travel. Mode of Transport The mode of transportation shall be followed as suggested in the following table for domestic travel Office vehicle may be used by senior officials for Dhaka city travel subject to availability and approval. Otherwise local transport shall be used by all employees of TIB. For using TIB vehicle requisition must be submitted to the Administration before the traveler submits TRF. If official vehicle is not available subject to approval of DAF, vehicle from rent-a-car may be used for domestic travel considering situation and cost implication. Travel Cost Traveler will be reimbursed for the actual cost of transportation and lodging as suggested in the next table Used plane, train, bus and steamer tickets and lodging/hotel bills shall be attached to the Travel Expense Report (TER) when it is submitted for reimbursement. If the used ticket is required to be surrendered, the traveler shall make a photocopy of the ticket and submit it with the TER.

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Travel Allowance: Mode of Transport, Lodging and perdiem ___________________________________________________________________________

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In addition to the transportation costs and lodging, the traveler shall be paid per diem to cover all meals, drinks and incidental cost, as suggested in the above table TIB staff will receive per diem allowance for domestic travel as under: Per Diem will be computed at the basis of total travel hour as follows: a) Half day per diem will be entitled for minimum of 5-8 hours travel; b) Full day per diem will be entitled for 8-24 hours travel. Staff members are also entitled to claim Per Diems for meals and incidental at the following rate while participating in events/training/workshops etc. outside their place of posting for which costs are covered by TIB. i) If one major meal (Launch or Dinner) is provided by TIB: 75% of applicable Per Diems entitlement on meals and incidental. ii) If both Lunch and Dinner are provided by TIB: 50% of applicable Per Diems entitlement on meals and incidental. iii) If all meals are provided by TIB: 40% of applicable Per Diems entitlement on meals and incidental. Incase of traveling of consecutive five days or more, respective staff is entitled to get Tk. 100 (One hundred) subsistence allowance per day. Meal Allowance In situations when employees are required to work for extended hours under due authorization they will be entitled to the following payments/reimbursements, which will be made on actual basis subject to approval of divisional heads supported by bills/receipts. Snacks: Upto Tk.30 for 2.5 hours of extended work after 5.00 pm on a regular working day. Lunch: Upto 25% of applicable per diem entitlement for official work outside office during the period from 12.00 pm to 3.00 pm. Dinner: Upto 25% of per diem entitlement for official work till 9.00 pm or beyond.

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In case of short term employees, the rates for lunch and dinner will be Tk.100. Other Reimbursable Expenses In addition to reimbursement of travel expenses at actual and per diem payment, the following expenses are also reimbursable when itemized and incurred during an authorized project related trip and satisfactory documentation is available with TER: i) Local conveyance for going to the bus terminal, railway station or steamer ii) Work related telephone, telegraph, telex or fax bill iii) Charges for photocopying materials relating to the trip. Travel Expense Report 1. Travel Expenses have to be submitted in Travel Expense Report (TER) on completion of an authorized project related trip. 2. Travel Expenses Report for all travels shall be submitted to the respective supervisor within 5 (five) working days after completion of the travel. The Supervisor shall forward it to the Finance Department immediately. Finance Department shall check the accuracy and get the approval for the settlement. 3. All documents relevant to travel expenses shall be attached with TER. All expenses regardless of amount shall be itemized. Receipts, paid bills or similar evidence for each item, shall be attached to the TER to support the claim. 4. Accounts department shall adjust the advance, if any, after approval of TER. 5. If a traveler who was paid an advance fails to submit TER within the time specified above, the advance paid to him or her may be deducted from his or her salary. International Travel All international travel shall be approved by Executive Director and should meet the requirements of funding agency. International travel shall be by the most direct route and by the economy class. Following general rules shall be maintained for international travel: a) Costs for travel to other countries to attend professional meetings or for official TIB business, shall be reimbursed on the basis of submitted records at the rates decided by the Executive Director, not to exceed those prescribed by the relevant donor, as amended. b) Out-of-pocket expenses incurred during travel shall be covered with approval of the supervisor.

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c) When travel is by an indirect route for the employees personal convenience, allowance costs of such travel shall be compensated on the basis of the cost of economy class air fair via the direct route usually traveled. Foreign Travel Allowance Staff traveling at the sponsorship of other organizations shall not be entitled to any allowance if they cover through his/her cost. Staff traveling at the initiative of TIB shall be entitled to have following allowances: i) International Travel fare ii) International Travel tax iii) Embarkation Tax iv) Airport Tax v) Visa Fees vi) Passport costs vii) TIB sponsored international traveler shall get a fixed allowance for meeting relevant expenses while staying abroad. Transfer Allowance Staff on transfer will get allowance for conveyance and luggage on joining her/his new working area. The following shall be applicable: a) Staff Level VII to XI I. II. Within the same region (duty station) shall get one months basic salary Outside the region (duty station) shall get 1.5 months basic salary

b) Staff Level I VI I. II. Within the same region (duty station) shall 1.5 times monthly total salary Outside the region (duty station) shall get two times monthly total salary

c) Staff will not be entitled to get transfer allowance as per Clause # 3.23.1 & 3.23.2, as the transfer granted on his/her personal request and convenience d) If transferred field staff need to stay outside his/her duty station (may be head office or any other places) for official purposes, shall get the daily allowances for those days as per procedure. Transferred staff is also entitled to claim field allowance for 3-7 days during 17

his/her joining at the new place of posting subject to approval of the line manager. Staff Insurance Coverage TIB shall maintain group insurance coverage at the expense of the organization for its entire confirmed and regular staff. This shall be guided by the group insurance coverage procedure developed jointly by TIB and the concerned insurance authority. Child Care Facility Female staff having babies up to the age of two years shall be entitled to carry their babies along with their attendants, if any, in the working places. Bi-cycle for Support Staff Support staff, who work in the CCC areas, will be provided a bi-cycle from TIBs funds as soon as he appointed. The purchase cost of the bi-cycle will be recovered in installments @ Tk. 500 from his/her salary each month. The ownership of the bi-cycle will be enjoyed by the Support Staff. He will keep it in his own custody and will use for official and personal use. Maintenance, repair and safe custody of the bi-cycle is the responsibility of the Support Staff. In case of damage or loss he/she will either replace the same on personal account or accept deduction from his/her salary to recover the purchase cost of the damaged/lost/stolen bi-cycle. Exception to the above can be made under special circumstances subject to the approval of the Executive Director. Expenses of Trustees All expenses incurred in connection with TIB related travel and work shall be borne by TIB on actual basis. Training, Staff Development and Internship All training should have prior budget provisions and it should be cost effective. Training plan should consider available financial resources for employee development. Funded training programmes can be availed of provided these are consistent with above. Interns are not entitled to salaries and benefits. However, upto Tk. 5,000.00 will be paid as gross monthly allowance to cover conveyance and incidental expenses. In connection with the given assignment field visits are required; the cost of travel, accommodation will be covered on actual basis. To the extent possible, TIB will try to provide logistic support such as workstation, telephone and internet use, supply of stationery and other facilities that may be required for proper discharge of 18

assigned tasks by the Intern. Incentives TIB provides only 3% incentives to the employees in every June.

ADMINISTRATIVE STRUCTURE OF COMPENSATION DEPARTMENT

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Salary matrix for regular staff members


Position Level Basic pay (Step -1 of 2007) [1] 1,498 2,284 4,494 (proposed New position) 5000 5,992 50 Percent of Total Basic Salary COLA [2] Basic Salary [3] Total (1+2) House Ren Allowance [4] Medical Allowance [5] Convey-ance Allow-ance [6] Children Allow-ance [7] Gross Salary & Allowances [8]

I II iii iv

Support Staff- I Support Staff -II Driver- I Diver-II

As determined by the board in each year

1100

Tk. 1250 for staff posted at Dhaka City & Tk. 1000 for staff posted outside Dhaka City

Grand Total (1 to 7) Tk 200 per child up to maximum 2 children (518 years)

60 Percent of Total Basic Salary

v vi

vii viii ix

Assistant / Program Organizer Assistant Manager/ Assistant Officer/ Executive Assistant Manager/Off icer Senior Manager/ Officer Research Fellow/ General Manager/ Coordinator/ Specialist Director

Not applicable

9,737

Tk. 1500 for staff posted at Dhaka City &

17,227 24,717 (Proposed new position) 31600 56,175

Tk. 1250 for staff posted outside Dhaka City

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xi

Executive Director

To be fixed by the Board

[3] In present salary matrix each level of position has 20 steps considering @ 3.5% increment on total basic salary of previous step.

PAY MIX DIAGRAM

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Salary matrix 2011 for regular staff members


Position Level Basic pay (Step -1 of 2007) [1] 1,498 2,284 COLA [2] Basic Salary [3] House Ren Allowance [4] 988.68 1507.44 Medical Allowance [5] Convey-ance Allow-ance [6] Children Allow-ance [7] Gross Salary & Allowances [8]

I II iii iv v vi

Support Staff- I Support Staff -II Driver- I

149.8 228.4

1647.8 2512.4

1100

Tk. 1250 for staff posted at Dhaka City &

6834.28 or 6584.28 Tk 200 per child up to maximum 2 children (518 years) 9082.24 or 8832.24 15402.84 or 15152.84 16850 or 16600
Not applicable

4,494 Diver-II (proposed New position) 5000 5,992

449.4

4943.4

2966.04

500

5500

3300

Tk. 1000 for staff posted outside Dhaka City

Assistant / Program Organizer Assistant Manager/ Assistant Officer/ Executive Assistant Manager/Of ficer Senior Manager/ Officer Research Fellow/ General Manager/ Coordinator

599.2

6591.2

3954.72

19737.12 or 19487.12 30447.82 or 30197.82 51868.62 or 51618.62 95536.62 or 95286.62 100543

9,737

973.7

10710.7

6426.42

vii viii ix

Tk. 1500 for staff posted at Dhaka City & Tk. 1250 for staff posted outside Dhaka City

17,227

1722.7

18949.7

11369.82

24,717 (Proposed new position) 31600

2471.7 3160

27188.7 34760

16313.22 20856

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x xi

/ Specialist Director Executive Director

56,175

5617.5

61792

37075.5

163260.5

To be fixed by the Board

[3] In present salary matrix each level of position has 20 steps considering @ 3.5% increment on total basic salary of previous step.

Salary matrix 2010: for regular staff members


Position Level Basic pay (Step -1 of 2007) [1] 1,498 2,284 COLA [2] Basic Salary [3] House Ren Allowance [4] 963.52 1466.33 Medical Allowance [5] Convey-ance Allow-ance [6] Children Allow-ance [7] Gross Salary & Allowances [8]

I II iii iv v vi

Support Staff- I Support Staff -II Driver- I

104.86 159.88

1602.86 2443.88

1100

Tk. 1250 for staff posted at Dhaka City &

6719.24 or 6469.24 Tk 200 per child up to maximum 2 children (518 years) 8904.03 or 8654.09 15052.31 or 14802.31 16460 or 16210
Not applicable

4,494 Diver-II (proposed New position) 5000 5,992

314.58

4808.58

2885.15

350

5350

3210

Tk. 1000 for staff posted outside Dhaka City

vii viii ix

Assistant / Program Organizer Assistant Manager/ Assistant Officer/ Executive Assistant Manager/Of ficer Senior Manager/ Officer Research Fellow/ General Manager/ Coordinator / Specialist Director

299.6

6291.85

5209.3

18628.60 or 18378.6 28646.48 or 28396.48 48682.23 or 48432.23 68718.33 or 68468.33

9,737

681.59

10418.5 9

5209.3

17,227

1205.89

18432.8 9 26447.1 9

Tk. 1500 for staff posted at Dhaka City & Tk. 1250 for staff posted outside Dhaka City

9216.45

24,717

1730.19

13223.95

(Proposed new position) 31600 56,175

2212

33812

16906

87130

2808.75

58983.7

30053.62

152868.12

23

xi

Executive Director

To be fixed by the Board

[3] In present salary matrix each level of position has 20 steps considering @ 3.5% increment on total basic salary of previous step.

TREND ANALYSIS

Salary matrix 2011: Total compensation paid in 2011 is Tk. 6026916 Salary matrix 2010: Total compensation paid in 2010 is Tk. 5421684 Trend Analysis = {Current Year (2011) Base Year (2010) / Base Year} * 100 = {(Tk. 6026916 - Tk. 5421684) / Tk. 5421684}* 100 = 11 %

EMPLOYEE ATTITUDE TOWARDS COMPENSATION POLICY

We conducted the survey among 10 representatives from different level and select the representatives randomly. The survey results are given below in a compile form. 6 out of 10 are satisfied with the current compensation practice. 3 people want to make amendment in benefits policy.

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1 wants to introduce pay for performance provision. Maximum employees think that there is a long pay distance among the levels Most of them want to improve life insurance policy and like to contribute financially.

QUESTIONNAIRE FOR PAY SURVEY


Designation of the Incumbent: 1. Are you satisfied with the current compensation policy of your organization? Yes No 2. If the answer is no then, in which category you think amendment. Basic pay Benefits Incentives 3. Would you want to introduce or improve any benefits and incentives plan? Yes No 4. If yes, please mention it. Introduce: Improvement: 5. Would you be willing to contribute a portion of your earnings for new or improved benefits beyond the level already provided by the organization? Yes No

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6. If yes, please indicate below in which area? COLA House Rent Allowance Medical Allowance Conveyance Allowance Children Allowance _____________________________________________________________________________ _

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FINDINGS
Maintaining Cost of living adjustment (COLA). Less emphasize on pay for performance. Huge Differences in pay between assistance program organizer & assistance program manager. Same medical allowances for all level of age. TIB provides double festivals allowances for the non Muslim. The HR does not conduct any formal survey for salary fixation in terms of other non profit organization.

RECOMMENDATION
Scope of pay for performance should be increased. Huge pay differences should be minimized among the positions. Medical allowances should be provided on the basis of age differences.

CONCLUSION
TIB is an equal employment opportunity organization. It is working for curving corruption in Bangladesh. They have a structured compensation policy that will be more effective if they concern about their internal and external alignment of their pay policy.

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