Compensation Structure - Mobilink

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Compensation-Stratgies-of-Mobilink-and-Tenelor
Company Introduction
Mobilink Microfinance Bank Limited (MMBL) is Pakistan's largest digital bank with over 15 million mobile
wallets. Backed by Global Telecom - VEON Co., MMBL started operations in April 2012 and launched
branch-less banking operations under the brand name JAZZCASH in partnership with Pakistan's largest
telecom operator JAZZ in Nov 2012. Being a hybrid model that combines traditional micro finance with
mobile / digital banking technologies, the bank now operates with 61 branches, 1,000 employees, a network
of over 70,000 branch-less banking agents (agrowing) and a USSD (GSM) based digital channel in the
country offering savings, micro enterprise (MSME) loans, small housing loans, remittances, collection (of
utility bills and loan installments), mobile wallets, insurance, G2P, B2B & B2P payments and thus playing a
leading role in promotion of financial inclusion.
Despite being a young bank, Mobilink bank has emerged as one of the front runners in the sector and
achieved financial break-even within four years of commencing operations in 2015, one of the fastest in the
industry. Financial performance of the Bank has been remarkable in 2016 and 2017 with return on equity
exceeding 35% in 2017.
Vision Statement
Mobilink Microfinance Bank aims to alleviate poverty and promote financial inclusion by providing innovative
solutions.
Mission Statement
Mobilink Microfinance Bank aims to provide financial solutions to the economically underprivileged for their
economic freedom by using innovative ADC’s and promoting micro businesses through an ethical and
passionate team, which strives to deliver beyond expectations.
Mobilink – Compensation Structure

COMPANY ANALYSES
Structure of Mobilink
Corporation
Finance
Administ- CEO IT
Engineer- ration & Secretariat Commerci Customer Human
ing Procurem al Care Resource
ent
Access Customer Financial

Networkin Administr Business Care Human Control IT
g Planning ation Analysis Marketing (MNP Resource Corporate
Corporate T&D
Finance
Core Quality Human Corporate Data ware
Networkin Administr Internal Commerci Assurance Resource House &
g Planning ation Audit al & Operation Software
Procurem Corporate Retention s Support
ent
Finance
Legal & Enterprise
Corporate General Governme Customer Taxation Solution
Engineeri Administr nt Corporate Coordinati &
ng ation Relations Sales on Security
Customer Finance Enterprise

Operation Care Operation Solution
BSS (Service Perman- &
Dealer ent
Sales Centre) Security
Operation Customer Finance Mediation

NSS Care Outsour- Treasury & Client
(Franchise ced & System
Retail
Sales ) Planning
Customer
Care Finance Network
Site (Corp Accounts Operation
Acquisitio
n RGM Services )
Support
Customer System
Care Administr
Sales & ation
Distributi (Billing)
on
Credit
Manage-
ment
Call
Centre
Customer
Care
Training

Keeping in view of all these factors the structure of Ufone is designed i.e. the
overall Structure of the Ufone is Divisional (More flexible and innovative). Mainly
Ufone has four regions and within those regions the structure is functional .The
decision making authority is centralized at the top but within the regions it is
decentralized i.e. regional heads have to inform top management before making
any decision.
Division of branches geographically (Location)
This is what Ufone looks from the organizational hierarchy point of view. There
are eight different departments each headed by a Project Director. They report
directly to the CEO. There are four BU (Business Unit) each Project Director is
responsible for these eight divisions. BUs are divided geographically into three
divisions
 BU North (Peshawar to Jehlum) Islamabad (Head Office)
 BU Central-1 (Gujranwala till Sialkot)
 BU Central-2 (Multan till Rahim Yar Khan)
 BUM South (Sindh and Balochistan)
Departmental Division
In order to give a jump-start to the company, a comprehensive initiation plan has

been made along with aggressive customer acquisition, care and retention
strategies. Ufone has the best integration of eight departments each project
director.
 Engineering
 Administration
 Business Analysis
 Marketing & Sales
 Customer Care

 Human Resource
 Finance
 Information Technology
Provision of quality service to the customers is of utmost importance for the

progress of any service-based company. At Ufone the management is mindful of
the same and has been constantly endeavoring to enhance the existing facilities.
Therefore operations at Ufone are all planned and carried out in such a way so
as to maximize operational efficiency, customer satisfaction and employees
motivation.
Although it is the subsidiary of the Pakistan Telecom Company Limited (PTCL),

Ufone carries out its operations autonomously under the license of Pakistan
Telecom Mobiles Limited (PTML). The company head office is established in
Islamabad (F-7 Markaz), which serves as the center for all its strategic activities.
Human Resource Department at Ufone
UFONE considers their employees to be the asset of the company, so in order to

retain their employees following practices are followed in the company.
HR PRACTICES
 Recruitment and selection

 Orientation
 Training and development
 Compensation and Benefits
 Performance Appraisal
WORK FORCE
HR at UFONE is divided into the following two major categories

 Permanent Employees (1500-2000 Approximately)
 Outsourced Employees (2000 Approximately)
Permanent employees
HR Permanent employees are further divided into following two

categories.

 Operation
 Training and Development
Operational Department
It covers all the areas including hiring recruitment, selection and payroll etc. HR
operation team manages all the employee activities gathers all the information
and make use of it for further processes.
Training and Development
HR team of training and development make a performance evaluation of all the

employees and the see where the gap occurs between the actual performance
and the desired performance. Then training is designed for area which needs to
be improved. On the job and off the job both the trainings are given according to
the need of the employee.
Employee Benefit & Compensation
 Training & Development
 Employee Motivation
 Retention of Employees
 Career Planning/ Succession Planning
 Employee Relations/ Communication
 Employee Awards
 Employee Events Management
 Medical & Life Insurance
COMPENSATION AND BENEFITS
Ufone follow the performance base pay structure and pay for their performance
and work output.
Compensation

The total returns which an employee gets against his or her work.
It maybe:
Employee Health Plans

Employee Insurance
Employee Leave
Employee Retirement Income Security Act
Executive Compensation
Maternity & Paternity Benefits
Pension & Retirement Plans
Wages & Salaries
Workplace Programs
Compensation strategies are usually market based and is linked with the
performance with a greater emphasis on variable pay. Salary adjustment is
based on the performance, market movement and internal/ external equity
adjustment. Revision of compensation is based on total pay and monetization of
benefits.

Levels of Ufone:
Hierarchy

C.E.O
V.P
G.M
Senior
Manager
Manager
Assistant
Manager
Senior
Executive
Permanent
executive
Outsourced
Executive
M.T
10 Levels
Individual Salary Fixation:

The Ufone seeks the market trend and try to compete with market for individual
salary fixation but they also analyze their own financial positions and budgeting, it
also varies from department to department.
Current Base Pay: (Job Based Structure and competitive)

The Ufone follows the job based structure, and compensate its employees for the
work they have done, for their tasks and duties they performed, their work
content, behaviour and for their responsibilities.
To develop this structure Ufone conducts some surveys, to compete with others
in the same industry.
Work Analysis
Evaluation & control
Market trends
Employee J.D
Surveys
Policy Lines
Total Compensation:
Example:
60% Basic Pay 15-k
30% House Rent 7.5-k
10% Utilities 2.5-k
OPD 2 Gross salaries
Hospitalization Employee siblings,
Parents, Wife / Spouse
and children’s
Provident Fund 50% Employee, 50% Org
Gratuity If work for 10 Months
Bonuses 1.4% Of Gross salary
Incentives Only Sales department
depend upon their
performance.
Assistant Manager Level:

25000 Car allowance + 200 Liter’s petrol / Month

Manager level:
Car + Blackberry
Senior Manager:
Islamabad Club Membership + BMW Car + House + Foreign Tours
Further Ufone has developed some grades for employees.
A H
A is the minimum grade and H is the maximum grade and they compensate their
employees on the basis of their grades.
Grade A 500 minutes + 500 Rs mobile usage. Same like this all other
benefits.
After every Two years Ufone give the amount of Rs 6000 to lower level
employees if they want to purchase a new mobile and this limit increases as
grade increases. At each stage the amount is different.
Food Subsidy:
S.E, Exe, M.T so on

Rs 65
Rs 95 Company
A.M and Above

160 RS
Increments:
The increments are totally based on the performance of the employees and their
seniority level.
If the scale is 15000-20000 then the increment is the 20% of the base pay, but if
any employee shows the performance then this may increase up to 35% to 50%.
Managers: Innovative ideas

Silent Warriors
Recognition of The work:

On Jan 29 (anniversary of Ufone).
Employees who is working in Ufone for seven years or more then seven years
gets Cash Rewards, Trophy, badges and other things.
Leave fair assistance

1 year 20 holidays 1 Gross salary
40 leaves 2LFA’s
Permanent Employees:
Number of employees:
Around 1500 – 2000
Minimum scale starts from 15000 – 20000

Maximum C.E.O (Not disclosed by the organization)
UFONE focuses on providing a large number of the compensation and benefits

to its employees in a form of the following categories:
 Minimum wage: The minimum salary for “Drivers” is Rs.7000 for “Tea
Boys” it is Rs.6500, for Administrative Staff like HR, Finance, Marketing,
etc it is Rs.20000 and for Engineering it is Rs.20000 to 25000.
 Medical Allowance: 1 gross salary per year is given to each employee;

half is given in mid of the year and remaining half will be given at the end
of the year.
 Health Insurance: Like all other cellular companies Ufone also provides
health insurance policy to its employees.
 Loan Insurance: At Ufone loan insurance policy is also provided to their

employees through banks.
 Transport allowance: Rs 2500 are given to female employees only, if

they travel on local transport.
 House Rent: 10% of the basic salary is given to each senior/ executive
level employee.
 Overtime: All employees are entitle for the overtime more then 130 hours
per month .For overtime UFONE have specific formula that apply on the

employees gross salary, due to which every employee have different per
hour overtime rate.
 EOBI: EOBI is contributed as per the standard
 Children Education allowance: 1 gross salary per year
 Provident Fund: All permanent confirmed employees are eligible for

membership of Ufone Employee Provident Fund Scheme. An employee
contributes 8.33% of month basic salary in a year and an equivalent
amount is being contributed by the employer.
 Leaves: 7 Casual and 10 sick leaves are given to each employee at all
level.
 Travel Policy: Revised and categorized different levels such as the senior
level, the middle level and the junior level staff.
 Meal deduction Claims: Meal books are to be maintained of each

employee who issues it, their name, employee number, designation,
signature and number of book and date at which it is issued has to be
recorded. The reason for maintaining the record is that the company pays
60% of the expense came over the food while 40% has to be deducted
from the employee’s salary.
 Expense Claim: The expense Claims are the expenses which an

employee make on the behalf of the company E.g. fuel used for business
travel, overnight stays on a business tour etc, such claim are made while
returning back to the office , after the whole process the HR pay them
back the next month along with their salary.
 Overtime Claim: If an employee has worked for more than the regular
time, they claim for the overtime amount other than their salary which they
receive the next month. Overtime claim have to be approved through HR
department.
 Medical Claim: Different medical facilities are provided to employees at

different level of hierarchy, so if any employees make use of this facility
they can claim for the amounts to be return next the month while
submitting the hospital receipt. Their medical clearness is done by the HR
department.
 Mobile deduction Claim: Such an expense claims which are made if an

employee has made long duration call for the official purpose and they

have exceeded the limit given to them then they can make a claim by
attacking a copy of mobile bill and if its valid then HR department
approved it and pay the employee their claimed amount along with their
monthly salary of the following month.
 Dispatching of Salary Slips: Vendor prepares the salary slip and

dispatch it to the HR department, further HR head office send it to the
regional HR departments their concerned employees salary slip and they
either give their employees through cash or transfer to their accounts.
Salary Surveys
Collections of salary and market data, it includes average salaries, inflation

indicators, cost of living indicators, salary budget averages. Ufone conducts its
own market survey and match its standards with other telecommunication
companies specifically with Mobilink and telenor.
(Research firms and personally)
Job Evaluation Method
The job evaluation method of Ufone is lined to appraisal system. Whenever the
appraisal report of any employee is generated he is being paid according to his
performance. The job is evaluated on the basis of appraisal reports. If any post is
vacant those past performance on that post is evaluated and the market
conditions are observed and then the job is evaluated. The value for the job is
concerned with the performance report. The value of any job can be increased if
the employee on certain post has performed very well and his appraisal report is
very outstanding then according to his performance value of job is increased and
this process is carried out by the HR department of Ufone. Moreover, the job
evaluation is linked with the merit. Any person who is employed on merit and is
performing very well will be given salary on the basis of his performance and
merit.
The job evaluation method was not very much good in the past but now it is
linked to appraisal system of Ufone.
The present basic salary structure of Ufone is based on Job description (Tasks
and duties performed).
Job Analysis
Job analysis is systematic exploration of activities within a job. It is a technical

procedure used to define the duties, responsibilities, and accountabilities of job. It
is proved that job analysis is almost first activity of HR department to be done.
Because on this, pay packages, compensations, job descriptions, job

specifications, job evaluation etc are made. So at Ufone experts do job analysis.
They construct “Job Analysis form”.
Ufone Job Analysis
Following steps should be taken by the Ufone.
Step1: Obtain Documentary information such as procedure manuals and written

instruction.
Step 2: Ask about more general aspect such as the job purposes, the main
activities.
Step 3: Ask the jobholders about the job.
Step 4: Observe the jobholders to see what they actually do.
Information Collected in Job Analysis
Work activities
Worker-oriented activities
Machines, tools, equipment, and work aids used
Job-related tangibles and intangibles
Work performance
Job content
Personal requirements for the job
Why Ufone conducts job analysis
The Ufone conducts the job analysis to get the right person for the right job at the
right time. If the Ufone does not conduct the job analysis then there will be a
huge chance of selecting the wrong person or to reject the right person who is
suitable for the job.
Knowing Who Does What
Major duties or activities required
Conditions under which the job is performed
Job analysis procedure of the Ufone

There are mostly following procedure of the Ufone about analysis of a job:
 Direct Observations
 Interviews
How Ufone formulate job description and specification
In Ufone most of the announcements for jobs are being done through
newspapers having wide circulation in the country. Whenever Ufone offers any
job it also describes the responsibilities and duties with in a job to be performed.
The HR people after analyzing any job that has become vacant makes a job
description defining clearly what the jobholder will do and how it will be done. On
the whole job description defines characteristics of job, environmental conditions
and responsibilities of the job.
The HR people define the job in such a way that it clearly describes the job and
guides new employees what to do etc. now they are moving towards E-
Recruitment also to ensure best candidates apply for the jobs and professional
people are employed in the Organization.
Job specification
Ufone also has well developed criteria for each job in term of the job
specification. In all the area of the jobs the pre- requisite for the job are defined
for example:
Qualification required for a job
Skill required for a job
Experience required for a job
Job Description
Human Resource Division analyzes each job and its required outcomes. Job
analysis is done by analyzing the past experience and emerging trends.
Ufone holds documents about terms, duties responsibilities, and specifications

about each job. In job description Ufone define the following:
Duties of HR manager is to select, hire and train employees
Responsibilities are to update records and processing insuring claims
Task is to complete the job related activities.

JOB DESCRIPTION FORM
To: HR From: Date:
Job Title: Permanent: Temporary:
Department: Grade: Date Required:
Brief Outline of Duties & If Temporary Specify the Period:

Responsibilities:
From: To:
Education & Qualification Req:

Experience Required:
Special Knowledge, Skills, personality,

requirements:
If a replacement, complete the following:
Employee to be replaced: Job Title: Date Separated Reason for

Separation
If increase in approved staff level, complete the following:

Justification of increase: Is position in Business
Plan:
Yes ( ) No ( )

Explain why is not possible to avoid this increase by office re-arrangements?
HR Views Initiated by:
Immediate Supervisor:
Recommended by: Verified by: Approved by:
Department Head General Manager HR&A Chief Executive
PERFORMANCE MANAGEMENT SYSTEM
Objective of the Performance Management:
The basic objective for performance UFONE employees circles around the
following:
 To look at Performance system as a means to an end
 Setting an individual’s goal
 Aligning goals across the company
 Ensuring employees get coaching from managers
 Determining merit pay
 Identifying training and development needs
 Providing data for promotion decision
 Input from multiple source on worker performance
The Performance Appraisal Process:
The Performance appraisal system used by UFONE for reviewing the

performance status of its employee starts with identifying specific appraisal goals
set by each Group for each cadre. After this a detail job analysis is done with
looking in account the job expectation and then matching the actual performance

with the desired performance. Afterward the performance is appraised according
to the set standards and this appraisal is not done by the supervisor alone, their
major focus is on taking into the account the employee’s perspective as well.
Therefore whenever the appraisal is done employee is fully participative in the
process.
Performance Appraisal Method Use by UFONE
UFONE is using 180-Degree Performance Appraisal Method. Within this method,

managers, peers, customers or colleagues are asked to complete questionnaire
on the employee being assessed. In UFONE, performance of an employee is
appraises twice a year. Once in June while other in December.
In the questionnaire there are five sections and in each section there are five
questions related to the performance of employee. There are total 100 points
from which an employee gets.
Rewards Related to Performance
There is also a reward related to performance of the employees. For “Customer

Facilitation Agents” there 50% pay is based on their performance which is
assessing every moth by their managers. For other employees like in
administration, engineering, finance, marketing, etc their performance is
assessed after every six and they get increased Rs.5000 in their salary as a
reward. In each case employee have to show consistent performance to win
reward next time.

Performance appraisal: 360°
Behavior 20%
Results 80%
Total 100%
Total 500 Marks

Best >400
Good >300
Average >250
A bell shaped distribution comes out to show

the performance
Compensation Responsibilities of Ufone HR Department
 Compensation Administration (designing and installing job evaluation

program, pay structure, analyzing jobs and their dollar-worth, maintaining
suitable records, wage and salary surveys of the labor market).
 Health and Safety (health programs, safety programs, Medical facility).
 Employee relations (wages, rates of pay, hours of work, conditions of
employment, negotiation, contract interpretation and administration,
grievance handling, allocation of overtime).
 Benefits and Services (insurance programs, Transportation facility, sick
leave pay plans, loan funds, LFA salary, Yearly bonus programs along with
special bonuses for achieving high targets).
Employees Reaction to the system
As mentioned above that Ufone follow the job based and competitive structure,
so this thing is in the nature of human that to react against any system because
by implementing structure every body in the organization thinks that he or she is
doing much and organization is not treating them well with the comparison of
others. But at Ufone as we observed mostly of the permanent employees are
quite satisfied with this system as compared to the contractual employees. Their
reaction towards the system is cooperative because of their appraisal system;
the Ufone performance appraisal system is very effective after every six months

every body knows that what their score is. Ufone is a performance oriented
organization so they compensate their employees on the basis of their
performance so every body know that if they show the results then the
organization will compensate them good if not then they will never expect, This is
a good approach for performance oriented organizations to implement the
system like this because of this system every body interests involves in it. And
the Ufone also adopted the Competitive approach for compensation, because of
this system every employee know what the other organizations are paying for the
same job and what they are getting is fair or not.
Some are not satisfied because they think that we are very senior and the
organization should have to compensate us for our seniority not for our work
done, (Loyalty factor involves).
Principal fault lines and some suggestions for improvement
While answering a question the manager of H.R expressed his thoughts that the
employees who are hired by third party and working in organization on
contractual basis, the manager answered “we don’t want them so we are not
bound to compensate them equally in comparison with our permanent
employees”.
In our point of view as we see the organization size figures that show there are
more then 2000 employees are on contractual basis which are more then the
55% of the overall size of the organization. And all those employees are not
much satisfied because of these criteria and they are a big part of the
organization, they are stressed with their job because they are getting only salary
not benefits or any other compensation tools against their work.
This thing shows that there is a lack of motivational factor among contractual
employees and cause increase in turnover rate. These things increase the cost
of new hiring and training of new employees. We observed another important
point with the prospective of Human Resource practices that in organization the
concept of relational return is not very satisfactory but this matter a lot in
organizations like Ufone.
Third setback is that they have some problem with their payroll; the organization
size is more the 4000 employees but they have only two executives who are
working for the pay roll and on the compensation so there are many troubles to
run the payroll accurately and compensate every one fairly on the basis of their
performance, because of work burden.
We think the Ufone should have to focus on the contractual employees and
needs to motivate them by compensating fairly, with communication and make
them understand that what they are getting is fair.
They have to provide them some necessary benefits, bonuses and incentives
according to their J.D.
Ufone should have to start some career development programs to attract and
retain most valuable employees, once if the employee feels that they have some

career growth in the organization they are motivated and loyal to the
organization.
HR Department must also forecast for long-term Human Resource needs.
It is also found that no referral bonus was given to contractual employees who
refer competent, skilled and knowledgeable candidate. The HR Department must
convince the higher management to give such bonus which not only motivated
the employees but the organization can in this way get competent, skilled and
experienced worker which may participate in the success of the organization.
Ufone HR Department must clearly communicate its promotion policy to all

employees.


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Mobilink – Compensation Structure

Access Customer Financial

Customer Finance Enterprise

Operation Customer Finance Mediation

Mobilink – Compensation Structure

Division of branches geographically (Location)

 BU North (Peshawar to Jehlum) Islamabad (Head Office)

 BU Central-1 (Gujranwala till Sialkot)

 BU Central-2 (Multan till Rahim Yar Khan)

 BUM South (Sindh and Balochistan)

In order to give a jump-start to the company, a comprehensive initiation plan has

 Marketing & Sales

Mobilink – Compensation Structure

Provision of quality service to the customers is of utmost importance for the

Although it is the subsidiary of the Pakistan Telecom Company Limited (PTCL),

Human Resource Department at Ufone

UFONE considers their employees to be the asset of the company, so in order to

 Recruitment and selection

HR at UFONE is divided into the following two major categories

HR Permanent employees are further divided into following two

Mobilink – Compensation Structure

Training and Development

HR team of training and development make a performance evaluation of all the

Employee Benefit & Compensation

 Training & Development

 Career Planning/ Succession Planning

 Employee Relations/ Communication

 Employee Events Management

 Medical & Life Insurance

COMPENSATION AND BENEFITS

Mobilink – Compensation Structure

Employee Health Plans

Mobilink – Compensation Structure

Mobilink – Compensation Structure

Individual Salary Fixation:

Mobilink – Compensation Structure

Current Base Pay: (Job Based Structure and competitive)

Assistant Manager Level:

Mobilink – Compensation Structure

Further Ufone has developed some grades for employees.

S.E, Exe, M.T so on

A.M and Above

Managers: Innovative ideas

Recognition of The work:

Mobilink – Compensation Structure

Leave fair assistance

Minimum scale starts from 15000 – 20000

UFONE focuses on providing a large number of the compensation and benefits

 Medical Allowance: 1 gross salary per year is given to each employee;

 Loan Insurance: At Ufone loan insurance policy is also provided to their

 Transport allowance: Rs 2500 are given to female employees only, if

Mobilink – Compensation Structure

 EOBI: EOBI is contributed as per the standard

 Children Education allowance: 1 gross salary per year

 Provident Fund: All permanent confirmed employees are eligible for

 Meal deduction Claims: Meal books are to be maintained of each

 Expense Claim: The expense Claims are the expenses which an

 Medical Claim: Different medical facilities are provided to employees at

 Mobile deduction Claim: Such an expense claims which are made if an

Mobilink – Compensation Structure

 Dispatching of Salary Slips: Vendor prepares the salary slip and

Collections of salary and market data, it includes average salaries, inflation