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Company Introduction
STC Company is the Telecommunication Company and is operating in Middle East and North Africa. The company provides the cellular and landline telecommunication services, along with internet and satellite TV services. The company is focused on serving its customers by using the innovative practices in order to satisfy its customers. The company incorporates the Next-Gen Technology in its business operations so that customers can be provided with the innovative applications and enhance the customer experience. The company is focused on providing the quality services due to its efficient work procedures, competitive workforce, continuous learning environment, effective supplier-partner relationship and infrastructure (STC 1).
Compensation and Benefits Philosophy
The Compensation and Benefits Philosophy of STC Company is aligned with the company’s mission and vision which incorporates the provision of quality services to its customers by means of continuous innovation and agility. The key component of the company’s philosophy resides in the innovation and customer experience and hence, the company tends to attract and retain the employees that are competitive enough to keep pace with the technological changes and meet the customer expectations. The company practices the merit basis to compensate its employees by means of the transparent employee evaluation mechanism. In this manner, the performance oriented compensation is encompassed in the company in order to motivate employees to focus on the customer orientation and technological innovations to improve its services and satisfy its customers. The company is the instrument of public investments and covers its operational and administrative expenses with its revenue.
Compensation and Benefits Strategy
The compensation of the STC Company incorporates the Total Cash Compensation, which is comprised of base salary and incentives. The Total Cash Compensation of the company encompasses the 50th to 75th percentile of the employees on the basis of their performance, which eventually depicts their above average performance. The phenomenon is discussed below in detail:
Base Salary
Base Salary is provided to the 50th percentile whereas 40 percent range is represents the minimum and maximum salary range for the similar job grades. The company offers the base salary in accordance with the market mid-point whereas, the above average performance during the year increases the employees’ base salary and they are paid at the above market mid-point.
Short-Term Incentives Pay
The incentives are provided on the basis of merit, in which the individual performance and contribution of the employee is measured and hence, incentives are targeted to the 50th percentile of the employees. In this manner, the employees can earn above the 50th percentile by means of their performance whereas, the 75th percentile accounts for the above average performance which eventually increases the amount of incentives. The total amount of incentives is depicted on the basis of company’s financial performance in each quarter. The extent of performance that is required to be maintained by the employees by means of the achievement of individual goals and objectives on a yearly basis.
STC Company also offers the non-cash benefits to its employees on the basis of their performance, motivation level, need based and pay-grade. The company offers the accommodation to 90th percentile of its employees, which is eventually on the basis of their performance and executive position. The benefits that address the healthcare facilities are provided to the permanent employees whereas the extent of healthcare facilities differs on the basis of minimum and maximum pay grades and hierarchical position of the employees.
The conveyance benefits are also provided to the employees in which the employees are compensated on the basis of their conveyance expense. Similarly, the conveyance benefits differs on the basis of minimum and maximum pay grades and hierarchical position and hence, the highest grade incorporates the provision of car and fuel whereas, the minimum grade covers the conveyance expense of the employees.
The company offers its telecommunication services to its employees whereas the package limit of cellular and internet also differs on the basis of employee grade and position. Moreover, the company offers the telecommunication gadgets to its customer service department so that they can address the customer concerns and can make the customer service operations more efficient.
The company offers the retirement plan and benefits to its permanent employees in accordance with the government standard and hence, 2.5% of the Base Salary of the employees accounts for the pension fund of the employees.
The company supports the two weeks’ paid family vacation for its high performance employees whereas, one week’s paid family vacation is offered to the 75th percentile of the employees. In this manner, vacation encompasses the merit based provision and acts as the motivating factor for the employees to enhance their extent of performance.
The company offers the dinner and vocational gift vouchers to the 75th percentile of the employees on the basis of their high performance on half-yearly basis. However, the dinner and vocational gift vouchers are also provided to the 50th percentile of the employees on a yearly basis of their above average performance.
Work Cited
STC. 2015. “About STC”. STC. Web. 2 March 2016.
