This document discusses compensation philosophy and performance management at TradeLink Pakistan. It outlines the purpose of compensation programs as attracting and retaining employees while recognizing differences in jobs. Compensation has direct elements like salary and incentives, and indirect elements like benefits. Performance is managed through annual and mid-year appraisals linking employee ratings to incentives. A 3-step process evaluates performance against objectives, rates components, and links grades to compensation increases.

1. Compensation & Benefits
Learning Session
Demo Project
By: ZEESHAN MOIEZ ALI
Karachi – Pakistan

2. TradeLink Pakistan (Pvt) Ltd
Compensation Philosophy
&
Performance Management

3. Concept
“Employee compensation (remuneration) refers to
all forms of pay or rewards going to employees
and arising from their employment”
The purpose of Compensation programs is to
attract and retain individuals, provide security
over the long time, and recognize differences in
individual jobs and responsibilities.

4. Compensation Philosophy
 Impacts an employer’s ability to attract
and retain employees.
 Ensure optimal levels of employee
performance in meeting the organization’s
strategic objectives.

5. Compensation Dimensions
 Compensation’s components
 Direct compensation in the form of wages or
salary
 Base pay (hourly, weekly, and monthly)
 Incentives (fixed and sales bonuses and or
commissions)
 Types of Leaves & Travel Fair Facility
 Indirect compensation in the form of benefits
 Legally required benefits (e.g., Social Security,
EOBI)
 Optional (e.g., group health benefits)

6. Pay Systems
 Job-based
 Pay the job (not the person)
 Market-based (external equity focus)
 Point factor-based (internal equity focus)
 Skills / knowledge-based
 Pay the person (not the job)
 62% of firms used some type of skill based
pay in 2005

7. Compensation PackageCompensation Package
Salary
60%
Basic, Cola,
House Rent,
Conveyance,
Utility.
Benefits (25%)
Gratuity, Death &
Disability Insurance,
Pension Plans,
Medical Coverage.
Incentives &
Allowances (15%)

8. Requirement For Compensation System
 Knowledge of employment and taxation law,
customs, environment and employment practices
of Service Sector Of Pakistan
 Familiarity with SPELT fluctuations and the
effect of inflation on compensation.
 A good understanding of why and when special
allowances must be supplied and which allowances
are necessary in to retain people.

9. Performance Management
 Performance Is Manage at TLP
 Employee Innovation
 Employee Involvement
 Personal Development
 Employee Focus On Continuous Improvement

10. Steps For Measuring Performance

11. What Observer Eye Looking For?
 Positive Attitude
 Team Orientation
 Innovation
 Customer Focus
 Superior Communication Skills

12. Types & Weightage Of PA
Annual Appraisal
60%, Yearly
Performance based,
Mostly Covers
Support Services
Department.
Mid Year Appraisals
25%, Performance
based, Covers Sales
Department for
Employee Retention
Mid Year Review, for
Balancing Different
Types of
Uncertainty, cover
specific departments.

13. PA In 3 Steps
Evaluating
Performance based on
Year Objective &
Quality Reviews
Rating the Components
Of PA Form & then
Set Grading
Set Grades are
Linked With
Increase In Incentives

14. PA In 3 Steps
 Who Evaluate?
 HODs, Supervisors, Themselves.
 How Evaluate?
 Through Rating, Through JDs, Through
Objectives.
 What They Return?
 Financial Increase, Vertical Growth,
Developmental Opportunities