To gather information about the salary & benefits of the Banking employees in Bangladesh & compare the banks.
Introduction 1.1
Foundation of the term paper The Jews in Jerusalem introduced a kind of banking in the form of money lending
before the birth of Christ. The word 'Bank' was probably derived from the word 'bench' as during ancient time Jews used to do money -lending business sitting on long benches. First modern banking was introduced in 1668 in Stockholm as 'Svingss Pis Bank' which opened up a new era of banking activities throughout the European Mainland. In the South Asian region, the Afghan traders popularly known as Kabuliwallas introduced early banking system. Muslim businessmen from Kabul, Afghanistan came to India and started money lending business in exchange of interest sometime in 1312 A.D. They were known as 'Kabuliwallas'. The number of banks in all now stands at 49 in Bangladesh. Out of the 49 banks, four are Nationalized Commercial Banks (NCBs), 28 local private commercial banks, 12 foreign banks and the rest five are Development Financial Institutions (DFIs). And the salary & benefits are the most attractive to maintain the employees, who controls the Bank. A salary is a form of periodic payment from an employer to an employee, which is specified in an employment contract. It is contrasted with piece wages, where each job, hour or other unit is paid separately, rather than on a periodic basis. Employee benefits typically refers to retirement plans, health life insurance, life insurance, disability insurance, vacation, employee stock ownership plans, etc. Benefits are increasingly expensive for businesses to provide to employees, so the range and options of benefits are changing rapidly to include, for example, flexible benefit plans.
Compensation includes topics in regard to wage and/or salary programs and structures, for example, salary ranges for job descriptions, merit-based programs, bonusbased programs, commission-based programs, etc. 1.2 Origin of the term paper This term paper on Salary & benefits survey on banking sector has been prepared as a fulfillment of partial requirement of the course “Compensation & Benefits (MHR 405)”. The course instructor Parveen S. Huda, Department of Business Administration, The University of Asia Pacific, has instructed us to prepare a term paper on salary & benefits survey. This report has been assigned to submit it on August 07, 2008. 1.3 Objectives The objective of the term paper is to involve us in a realistic situation about how an industry develops their promotional activities and how they materialize their policies. Primary objective: Our main objective is to gather information about the salary & benefits of the Banking employees in Bangladesh & compare the banks. And the study has given us realistic viewpoint and information that are needed to complete the report of our course. Secondary objective: •
For the purpose of this report we have placed the main focus on the salary & benefits packages of banks.
•
To find out the results after comparing the packages of the banks.
•
Identify the employees proffered salary & benefits and so on.
•
Identify the problems that employees of banks are faced on salary, benefits & compensation packages.
1.4 Sources of information To prepare the term paper the group members needed a lot of information. Most of the information was collected by consult with the employees. The group members have interviewed the officers of the three banks “Bank Asia, City Bank, NCC Bank & BASIC Bank” to gather information about their salary & benefits packages and the policies of the industries. The group members have also gathered some information from the websites of the relevant industries, some memento published by the industries, the books related with “HRM” has also helped to recognize the theoretical aspects.
1.5 Scope of the term paper As it is a part of our Compensation & benefits study, it will be very helpful for us in the future because while preparing this term paper we visited the banks of a well reputed banking industries named Bank Asia, City Bank, NCC Bank & BASIC Bank from where we gathered some ideas of crucial packages of Salary & benefits that is – how to prepare and present a survey term paper more effectively and efficiently. We have also gathered a little experience of a work place and many more. This will help us in performing better when we will go for our work in work places in the real life situation. 2.0Corporate aspects and secondary literature 2.1 Company Profile A bank is a financial institution whose primary activity is to act as a payment agent for customers to borrow and lend. The first banks were probably the religious temples of the ancient world, and were probably established sometime during the 3rd millennium B.C. Banks probably predated the invention of money. Deposits initially consisted of grain and later other goods including cattle, agricultural implements, and eventually precious metals such as gold, in the form of easy-to-carry compressed plates. Temples and palaces were the safest places to store gold as they were constantly attended and well built. As sacred places, temples presented an extra deterrent to would-be thieves. There are extant records of loans from the 18th century BC in Babylon that were made by temple priests monks to merchants. By the time of Hammurabi's Code, banking was well enough developed to justify the promulgation of laws governing banking operations. The first modern bank was founded in Italy in Genoa in 1406; its name was Banco di San Giorgio (Bank of St. George). The name bank derives from the Italian word “desk/bench", used during the Renaissance by Florentines bankers, who used to make their transactions above a desk covered by a green tablecloth. However, there are traces of banking activity even in ancient times.
The number of banks in all now stands at 49 in Bangladesh. Out of the 49 banks, four are Nationalized Commercial Banks (NCBs), 28 local private commercial banks, 12 foreign banks and the rest five are Development Financial Institutions (DFIs). Bangladesh Bank (BB) regulates and supervises the activities of all banks. The BB is now carrying out a reform program to ensure quality services by the banks. Bangladesh Bank (BB) has been working as the central bank since the country's independence. Its prime jobs include issuing of currency, maintaining foreign exchange reserve and providing transaction facilities of all public monetary matters. BB is also Bangladesh Bank (BB) has been working as the central bank since the country's independence. Its prime jobs include issuing of currency, maintaining foreign exchange reserve and providing transaction facilities of all public monetary matters. BB is also responsible for planning the government's monetary policy and implementing it thereby. For our survey we selected the four banks which areBASIC Bank Limited The BASIC Bank Limited (Bangladesh Small Industries and Commerce Bank Limited) establishes as a banking company under the companies Act 1913 launched its operation in 1989. It was incorporated under the Act on the 2 nd of August, 1988.The Bank started its operation from the 21st of January, 1989 .It is governed by the Banking Companies Act 1913.The Bank was established as the policy makers of the country felt the urgency for a bank in the private sector for financing Small Scale Industries (SSIs). At the outset, the Bank started as a joint venture enterprise of the BCC Foundation with 70 percent shares and the Government of Bangladesh (GOB) with the remaining 30 percent shares. The BCCI, the Government of Bangladesh took over 100 percent ownership of BASIC on 4 th June 1992.Thus there is state-owned. However, the Bank is not nationalized; it operates like a private bank as before. The City Bank Limited The banking sector of Bangladesh played an important role towards economic growth in Bangladesh. The City Bank Limited is the first private sector bank in Bangladesh. It came to being In 1983 With Authorized Capital of Tk. 400/-Million under The Entrepreneur of 12 Nos. Prominent & Leading Businessman of the country. The noble intention behind staring of
this Bank was to bring about a qualitative change in the sphere of banking and financial management. Bangladesh Bank always trying to take initiatives in reforming financial sector. Steps for prevention of money laundering, loan write off policy and effective measures to gain accountability and transparency made banking operations more acceptable. NCC Bank Limited National credit and commercial Bank Limited was incorporated in Bangladesh as a banking company under the companies Act 1994. The principal place of business is the registered office at 7-8 Mothijheel Commercial Area, Dhaka 1000. It has 53 branches all over the Bangladesh at 31 December 2007. It carries out all banking through its branches in Bangladesh. The Bank is listed with Dhaka Stock Exchange Limited and Chittagong Stock Exchange Limited as a public quoted company for its shares. The Bank commenced its banking business with sixteen branches from 17 May 1993.
Bank Asia Bank Asia carries out all traditional functions, which a commercial bank performs such as mobilization of deposit, disbursement of loan, investment of funds, financing export & import business, trade & commerce & so on. It gets the certificate of Incorporation and commenced its banking business in 28 August 1999. This bank launches their first share trading in bourse in 08 January 2004. Now it has 30 branches with 22 promoters. 2.2 Corresponding body of literature SECTION 1: SALARY Part-A Take- home salary: The amount of money that you earn after you have paid tax, etc. Gross Annual Salary: Being the total amount of money before tax, etc are taken away in yearly. Cost of Company for Position:
Company bears expenses of facilities given to an employee as mentioned in an agreement as well as furniture and daily uses equipment. Preferred Take-Home Salary: To choose the amount of money that you like to earn after you have paid tax, etc. Starting Salary: Amount of money is given to an employee for the first time. Position in current organization: The place where is meant to be the correct place in current organization. Salary of Previous Position: Money that employees receive for doing their job usually paid every month in the previous position. Minimum Increase in Take Home Salary: To make salary greater in minimum amount of money that you earn after you have paid tax, etc. Part- B. FIXED CASH Basic (mid point): The point that is halfway between two salary (mid point between the first year salary and last year salary). House Rent Allowance: A tax-free amount of money that may be deducted before tax is calculated is given regularly to pay for use a house etc. Conveyance Allowance: A tax-free amount of money that may be deducted before tax is calculated is given regularly for the process of taking from one place to another. Medical Allowance:
A tax-free amount of money that may be deducted before tax is calculated is given regularly for the medical expenses. Other allowance: A tax-free amount of money that may be deducted before tax is calculated is given regularly for the other expenses. OTHER INTENCIVES Performance bonus /Sales incentives: An extra payment made to employees by management usually as a reward for good work, to compensate for something or to share out the profits of a good year’s trading. Festival Bonus: An extra payment made to employees by management for a day or period of the year when people stop working to celebrate a special event, often a religious one. Profit Bonus: An extra payment made to employees by management for the excess of the selling price of the service being sold over the costs of providing it. DEFERRED BENEFIT Gratuity: Money that is given to employees when they leave their job. Provident Fund: Careful in planning for the future, especially by saving money. Pension: An amount of money paid regularly by a government or company to somebody who is considered to be too old or too ill to work. HOLIDAY INCENTIVES Leave Fare Assistance: Help or support to go away from a place by the use of money that you pay to travel by bus, plan, etc.
Leave Encashment: To go away from a place by an exchange a cheque etc, for money. ANY OTHER COMPONENTS TA/DA: A tax-free amount of money that may be deducted before tax is calculated is given regularly to pay for to go from one place to another, especially over a long distance. SECTION 2:BENEFITES Part- A Group Term Life insurance: When you are working in a group it must be protected by insurance. If you are in group and yours activities with a
dangers or hazard work, those group must be protected by insurance
like Ship braking industry or oil refining work because for this group insurance, any accident will be occur you must be compensating form the insurance company. Health insurance: That type of insurance protects employee health. Medical cost reimbursement: If you are admitted in hospital for serious dieses, your company will provide half of your medical cost. Hospitalization Policy: what type policy they (company) follow like pay only medicine bill or dig agonistic bill etc . Accommodation (company provided): The adjustments including reasonable modifications to rules, policies, or practices; environmental adjustments such as the removal of architectural, communication, and transportation barriers, or auxiliary aids, and services. Utility (Gas, Electricity, water):
If company provides any utility bill in favor our household. Telephone/ Mobile: If company provide our monthly telephone or mobile bill Club management Any favor from the club members like Dhaka club, Chittagong club members also. Children Education support If company provide children education aid like tuition fess provide for class 10 or other equivalent program. Lunch That company provides lunch facility for their employee. Like many company provide lunch facility for their employee in their own management but employee will pay only half of their male Manu. Entertainment allowance Like free Air ticket provide for family in a summer vacation. Personal staff / servant allowance If company want to pay monthly basis for Personal staff or servant allowance House hold amenities (soft & hard furnishing ) Company will provide benefit or cash benefit for their employee like much multination company will provide for their employee when they go to out side. House maintenance If company will provide house maintains cost like 5% or 2% for their total cost Professional membership That company will provide membership fess like C.A membership or Golf club membership etc.
TRANSPORT Company car/ Driver’s allowance/ Fuel cost / Maintenance cost: That company will provide of their executive personal car expense including driver or oil cost also. Company car / Micro / Bus (pick and drop service): There is another terms of motivation for a employee works well. The company will provide Common bus or Micro for their employee like Grammen phone, Aktel and other MNC Part- B What minimum benefits are essential for you to consider a new job? This question about the minimum essential benefits for that only a employee consider a new job. SECTION 3:Other Factors Other factors may essential for the employees to consider a new job. And by importance the factors are arranged for essential, preferable and not important. The factors are•
Type of organization (MNC, Foreign company, Local company, etc.
•
Market position/reputation of company
•
Authority/position in organization
•
High possibility of promotions/overseas postings
•
Company provided scholarship
•
Overseas visits
•
Short distance of work location from Dhaka city
•
Less frequent travel inside Bangladesh.
2.3 Questions identified Our course instructor have provided us the questions which we have to identify1. What the salary and benefits components those are most attractive to the industry employees? 2. What factors motivate these people to change jobs? 3. Identify the most common and most uncommon components of salary and benefits in the tables.
4. What non-monetary components are important for a job switch? 5. What is the following range of your survey population? •
Experience,
•
Education,
•
Age,
•
Gender,
•
Marital status,
•
Number of dependents,
•
Working spouse,
•
Living status and
•
Earning level
6. Did you notice any significant difference in the answer pattern due to the differences in the demographic statistics? 7. If you were to recommend change in the salary and benefits structure-what are the components you think they should incorporate to make the structure most attractive for the employees? 2.4 Summary If we see in the banking sector education is most important factor do the job because business background people always preferable to this job. In the salary structure we need to understand the employee present motive in the organization, he or she can satisfied for their job or they want to switch the new job (if they have not satisfied for their present salary structure. or they want to get extra benefit like children education or loan for a higher study for their children). Now a days price hike situation the employee wants to get cash benefits also compare to the non-cash benefit. They want to get 2 festival bonus and company profit sharing also. Most of the employee want to ensure to their job that’s they preferred provident also. Transportation is a major factor for all the company but employee wants to get transportation facility from their company. In this questioner or serve we can easily find which compensation or benefit likes for the employee to their motivated the present job situation
and reduce the turn over and employee satisfaction also. We hope so its will be approved for all. 3.0 Analysis section 3.1 Methods and design The study requires a systematic procedure from selection of the topic to final report preparation. To perform the study data sources are to be identified and collected, they are to be classified, analyzed, interpreted and presented in a systematic manner and key points are to be found out. This overall process of methodology is given in the following page in the form of flowchart that has been followed in the study. A. Selection of the topic: This topic has been selected out of several available options. The group member’s interest takes a vital part to select the tropic. And at last we selected banking sector as our survey industry. Then we select 4 banks as our sampling survey. And the banks are Bank Asia, The City Bank, NCC Bank and BASIC Bank B. Identifying data sources: Essential data sources both primary and secondary are identified which will be needed to complete and workout the study. To meet up the need of data primary data are used and the study also requires interviewing the officials and staffs where necessary. C. Collection of data: Primary data are collected through 100% physical inspection, as there is no provision and scope for using sampling technique. Interviewing is predominantly required to collect the primary data. D. Classification, analysis, interpretation and presentation of data: To classify, analyze, interpret and presentation of data we used some arithmetic and graphical tools to understand them clearly. E. Findings of the study: After scrutinizing the data problems of the study are pointed out and they are shown under concerned heads. Recommendations are suggested thereafter to overcome the problems. F. Final report preparation: On the basis of the suggestions of our honorable course teacher some deductions and additions are made and final report is prepared thereafter.
3.2 Questions addressed & data analysis Here we use some tools & techniques for finding the result, after comparing the information’s of the 4 banks, which we have surveyed. We surveyed on 4 banks. And takes 5 employees from each bank, which formed total 20 employees. Also selected the officer level for our survey. We selected individual as working experienced between 3-5 years. We collected the information via this peoples-
Bank
Name
Designation
Bank Asia
Shah Alam
Officer
The City Bank
Rahmatullah khan
Director
NCC Bank
Mahbubur Rahman
Principal Officer
BASIC Bank
Md. Salim
D.G.M
We surveyed on these employees from these banks with these level-
SI no
Banks name
Employees name
Designation
Contract
01
Bank Asia
Touhidur Rahman
Senior Officer
number 01715-912454
02
Bank Asia
Sahana Akter Lina
Assistant Officer
01711-677268
03
Bank Asia
Mohammad Belal Hossain
Officer
01727-760638
04
Bank Asia
Shah Alam
Officer
01911-953805
05
Bank Asia
Officer
7320620-21
06
The City Bank
Mrs. Bilkis Akther
Customer
(Ext 115) service 9124475,
07
The City Bank
Md. Bashirul Haque
Manager Executive Officer
8128267 01715-392655
08
The City Bank
Dina Afruz jahan
Assistant Customer 8128267 9124475,
09
The City Bank
Md. Ibrahim Khalil
Service Manager Associate
10
The City Bank
Tamanna Zerin
Relationship Officer Officer
8128267 01710-229031
11
NCC Bank
Kazi Shahidul Islam
Officer
01913107510
12
NCC Bank
Md. Mahbubur Rahman
Officer Gr-1
01817145089
13
NCC Bank
Md. Suhrawardhy Khan
Officer
9343049
14
NCC Bank
Md. Abu Alab
Officer
01712-105552
15
NCC Bank
Mezbah Uddin Khan
Officer
01732-764207
16
BASIC Bank
Taufiq Islam
Officer
01712-515685
17
BASIC Bank
Mohammad Nazibullah
Officer
01716-40053
18
BASIC Bank
Moklesur Rahman
Officer
01713-365074
19
BASIC Bank
Shahriar Hossain
Officer
01913-521009
20
BASIC Bank
Yousuf hossain
Officer
01191-42869
Data analysis Here we compare 4 banks by using some tools & techniques to show the salary & benefits packagesSection 1 (Part A)
Take home salary The amount of money that you earn after you have paid tax. Bank Asia 32000+30000+20000+16000+30000 = 128000/5 = 25600 tk The City bank 25000+30000+21000+17500+25000 = 118500/5 = 23700 tk NCC Bank 15000+16000+22500+17500+19000 = 90000/5 = 18000 tk BASIC Bank 23000+10530+14170+8385+14155 = 70240/5 = 14160 tk Take home salary 30000 currency in Taka
25000 Bank Asia
20000
The City Bank
15000
NCC Bank
10000
BASIC Bank
5000 0 Banks
Gross Annual Salary Being the total amount of money before tax, etc is taken away in yearly. Bank Asia 408000+420000+240000+384000+240000 = 1692000/5 = 338400 tk The City bank 350000+384000+276000+240000+300000 = 1550000/5 = 310000 tk NCC Bank 336000+480000+360000+250000+240000 = 1666000/5 = 333200 tk BASIC Bank 272676+203688+3228776+248736+300000 = 1353876/5 = 270775 tk
Gross Annual Salary 400000 currency in Taka
350000 300000
Bank Asia
250000
The City Bank
200000
NCC Bank
150000
BASIC Bank
100000 50000 0 Banks
Cost for the position Company bears expenses of facilities given to an employee as mentioned in an agreement as well as furniture and daily uses equipment. Bank Asia 25000+40000+25000+45000+40000 = 185000/5 = 37000 tk The City bank 35000+35000+40000+25000+30000 = 165000/5 = 33000 tk NCC Bank 25000+45000+35000+25000+25000 = 150000/5 = 30000 tk BASIC Bank 23000+25000+25000+20000+40000 = 133000/5 = 26600 tk
Cost for the position 40000 currency in Taka
35000 30000
Bank Asia
25000
The City Bank
20000
NCC Bank
15000
BASIC Bank
10000 5000 0 Banks
Preferred Take-home salary To choose the amount of money that you like to earn after you have paid tax, etc. Bank Asia 30000+50000+30000+60000+50000 = 220000/5 = 44000 tk The City bank 50000+45000+50000+25000+40000 = 210000/5 = 42000 tk NCC Bank 25000+35000+40000+28000+28000 = 156000/5 = 31200 tk BASIC Bank 25000+18000+18000+14000+35000 = 110000/5 = 22000 tk
Preferred take-home salary
currency in Taka
50000 40000 Bank Asia
30000
The City Bank NCC Bank
20000
BASIC Bank
10000 0 Banks
Minimum increase of salary to consider a new job To make salary greater in minimum amount of money for that you consider to switch. Bank Asia 10000+18000+10000+20000+15000 = 73000/5 = 14600 tk The City bank 20000+20000+20000+10000+15000 = 85000/5 = 17000 tk NCC Bank 10000+15000+10000+7000+10000 = 52000/5 = 10400 tk BASIC Bank 10000+15000+15000+5000+10000 = 55000/5 = 11000 tk
Minimun increase of salary to consider a new job 18000 currency in Taka
16000 14000 12000
Bank Asia
10000 8000
The City Bank NCC Bank
6000
BASIC Bank
4000 2000 0 Banks
Section 1 (Part B) Basic (Mid Point) The point that is halfway between two salaries (mid point between the first year salary and last year salary). Current Bank Asia 17000+22500+17500+13500+23000 = 93500/5 = 18700 tk The City bank 13155+20000+12000+17500+25000 = 87655/5 = 17531 tk NCC Bank 17000+15875+17500+16400+18000 = 84775/5 = 16955 tk BASIC Bank 13000+11900+15075+8720+11723 = 60418/5 = 12084 tk
Current Basic( Mid point)
currency in Taka
20000 15000
Bank Asia The City Bank
10000
NCC Bank BASIC Bank
5000 0 Banks
Preferred Bank Asia 50000+30000+20000+20000+30000 = 150000/5 = 30000 tk The City bank 20000+35000+20000+25000+30000 = 130000/5 = 26000 tk NCC Bank 25000+18000+25000+17000+30000 = 115000/5 = 23000 tk BASIC Bank 17500+14000+18000+10000+15000 = 74500/5 =14900 tk
Preferred Basic (Mid point) 35000 currency in Taka
30000 25000
Bank Asia
20000
The City Bank
15000
NCC Bank BASIC Bank
10000 5000 0 Banks
House Rent Allowance (Percentage on basic salary) A tax-free amount of money that may be deducted before tax is calculated is given regularly to pay for use a house etc. Current (Average) Bank Asia 50+50+50+44+52 = 246/5 = 49.2%
Preferred (Average) Bank Asia 80+80+75+75+70 = 380/5 = 76%
The City bank 50+50+33+50+50 = 233/5 = 46.3%
The City bank 55+70+83+70+100 = 378/5 = 75.6%
NCC Bank 30+23+34+43+40 = 170/5 = 34%
NCC Bank 70+38+57+73+50 = 288/5 = 57.5%
BASIC Bank 75+66+70+72+67 = 350/5 = 70%
BASIC Bank 100+84+86+100+85 = 455/5 = 91%
Current House rent allow ance
Preferred House rent allow ance
80
100
70
90 80
60
70
50
Bank Asia The Cit y Bank
40
NCC Bank BASIC Bank
30
Bank Asia
60
The Cit y Bank
50
NCC Bank
40
BASIC Bank
30
20
20
10
10
0
0 Banks
Banks
Conveyance Allowance (Percentage on basic salary) A tax-free amount of money that may be deducted before tax is calculated is given regularly for the process of taking from one place to another. Current (Average) Bank Asia 17+15+15+22+15 = 84/5 = 16.8%
Preferred (Average) Bank Asia 80+80+75+75+70 = 380/5 = 76%
The City bank 9+5+16+8.5+4.8 = 43.3/5 = 8.66%
The City bank 55+70+83+70+100 = 378/5 = 75.6%
NCC Bank 12+19+17+6+5 = 59/5 = 11.8%
NCC Bank 70+38+57+73+50 = 288/5 = 57.5%
BASIC Bank 6+6+5.3+8.6+6.3 = 32.2/5 = 6.44%
BASIC Bank 100+84+86+100+85 = 455/5 = 91%
Current Convenyance allow ance
Preferred Convenyance allow ance
18
30
16 25
14 12
20
Bank Asia
10
The City Bank
The Cit y Bank
15
NCC Bank
8
Bank Asia NCC Bank
BASIC Bank
6
BASIC Bank
10
4 5
2 0
0
Banks
Banks
Medical Allowance (Percentage on Basic salary) A tax-free amount of money that may be deducted before tax is calculated is given regularly for the medical expenses. Current (Average) Bank Asia 17+15+15+8+15 = 70/5 = 14%
Preferred (Average) Bank Asia 30+20+20+15+20 = 105/5 = 21%
The City bank 9+5+16+8.5+4.8 = 43.3/5 = 8.66%
The City bank 23+7.5+33+17+10= 90.5/5 = 18.1%
NCC Bank 10.5+17+17+13+12 = 69.5/5 = 13.9%
NCC Bank 17.6+31+28.5+18+16 = 111/5 = 22.22%
BASIC Bank 8+6.7+6.6+9.2+6.8 = 37.3/5 = 7.46%
BASIC Bank 38+13+10+11.5+12.8 = 85.3/5 = 17.06%
Preferred Medical allow ance
Current Medical allow ance 25
16 14
20
12 10
Bank Asia
15
Bank Asia The Cit y Bank
The City Bank
8
NCC Bank
NCC Bank BASIC Bank
6 4
10
BASIC Bank
5
2 0
0
Banks
Banks
Incentive Bonus (Multiple of Basic salaries) An extra payment made to employees by management usually as a reward for good work, to compensate for something or to share out the profits of a good year’s trading. Current
Preferred
Bank Asia = 5.9
Bank Asia 10+8+8+8+6 = 40/5 = 8
The City bank = 1
The City bank 5+5+3+7+3 = 23/5 = 4.6
NCC Bank = 5
NCC Bank 6+8+8+8+7 = 37/5 =7.4
BASIC Bank = 6
BASIC Bank 8+8+10+8+8 = 42/5Incentive = 8.4 Bonus Preferred
Current Incentive Bonus 7
9 8
6
7 5 6 Bank Asia
4
The City Bank NCC Bank
3
BASIC Bank
B ank Asia
5
The City Bank NCC Bank
4
B ASIC Bank
3
2
2 1
1
0
0 Banks
Banks
Other factors Full time work experience Years/Bank 0-3 3-5 5-10 10-above
Bank Asia (5) 2 2 1 0
The City Bank (5) 1 2 1 1
NCC Bank (5) 1 0 3 1
BASIC Bank (5) 3 2 0 0
NCC Bank (5) 1
BASIC Bank (5) 3
Full time work experience in current industry Years/Bank 0-3
Bank Asia (5) 3
The City Bank (5) 2
3-5 5-10
2 0
3 0
4 0
2 0
Bank Asia (5) 0 3 2 0
The City Bank (5) 1 1 2 1
NCC Bank (5) 0 2 1 2
BASIC Bank (5) 0 4 1 0
Bank Asia (5) 3 2
The City Bank (5) 2 3
NCC Bank (5) 5 0
BASIC Bank (5) 5 0
Bank Asia (5) 1 4
The City Bank (5) 1 4
NCC Bank (5) 1 4
BASIC Bank (5) 2 3
Age Years/Bank Below 25 25-30 30-35 35-40
Gender Status/Bank Male Female
Marital Status
Status/Bank Unmarried Married
Spouse also gainfully employed ( Job/ business)
Bank Yes No
Bank Asia (5) 2 3
The City Bank (4) 2 2
NCC Bank (4) 2 2
BASIC Bank (3) 2 1
Live with
Bank Yourself With spouse children With parents
Bank Asia (5) 0 & 2 1
The City Bank (5) NCC Bank (5) 0 1 3 3
BASIC Bank (5) 2 3
1
0
0
With spouse, 2 children & parents
1
1
0
Live in
Bank Rented house Owned house Parents house
Bank Asia (5) 2 3 0
The City Bank (5) 2 2 1
NCC Bank (5) 4 1 0
BASIC Bank (5) 4 1 0
Dependents are Bank None Spouse Children Parents Spouse & children Children & parents Spouse, children & parents
Bank Asia (5) 2 1 0 1 1 0 0
The City Bank (5) 2 1 0 0 1 1 0
NCC Bank (5) 0 1 1 1 1 0 1
BASIC Bank (5) 4 1 0 0 0 0 0
Family income (Annual) Bank Less 500000 500000-1000000 1000000-2500000
Bank Asia (5) 3 2 0
The City Bank (5) 2 3 0
NCC Bank (5) 4 1 0
Not providing the salary & benefits From the survey we identify that all the banks are not giving•
Profit bonus,
•
Leave encashment,
•
Accommodation,
BASIC Bank (5) 0 3 2
•
Telephone bill facility,
•
Club membership,
•
Children education support
•
Lunch facility,
•
Servant allowance,
•
Household amenities,
•
Pick & drop facility etc.
Attractive & benefits components The attractive salary & benefits components are•
Increase house rent allowance,
•
Pick & drop facility,
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High incentive bonus,
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Personal Computer,
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Personal room,
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Authority in organization,
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Location in Dhaka,
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Multinational company.
Factors are motivated people to change jobs These factors are very much motivating to change jobs•
Authority,
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Reputed organization,
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Quick promotion facility,
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Transport facility,
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High salary,
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High bonus on performance.
Non-monetary components of salary & benefits The non-monetary components are•
Authority,
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Transportation,
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Laptop
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Overseas visit.
Components of salary & benefits Some common & uncommon components of salary & benefits areCommon components House rent allowance Conveyance allowance Medical allowance Incentive bonus Festival bonus Provident fund
Uncommon components Pension Leave encashment Family life insurance Accomodation Lunch Household amenities Laptop facility Servant allowance Children education support
3.3 Substantial complexity of inference since several issues are interrelated. From our survey we get some significant difference in the answer pattern. Some of them are•
One of them is not want to switch from her present job, because she is satisfy with her job.
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One of them wants a laptop to consider a new job.
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A person preferred 100000 tk cash to switch.
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A lady employee preferred the accommodation facility to consider a new job.
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Some employees are very much interested about taking lunch, where some are not.
4.0 Elaborate analysis of data 4.1 Summary findings •
The highest average take home salary is paid to the employees as TK 25600 of Bank Asia and the lowest is paid to the employees of the BASIC Bank as TK 14160.
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The minimum number of employees preferred their take home salary as above TK 40000.
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Most of the employees are considered the minimum increased of TK 15000 in their take home salary which would they require to consider a new job.
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All the employees are wanted to increase their there house rent, medical allowance, and entertainment allowance.
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Also the employees are wanted to add pick and drop facilities, leave enhancement facility, children education facility, etc.
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All the employees are highly recommended with their mobile phone facility, where the four banks are not provided this facility.
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The Bank Asia and the BASIC Bank provides the annual incentives as about 6 times of their basic salary where The City Bank and the NCC Bank provide 1-3 times of their basic salary.
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The good working environment, reputed organization, good promotion facility, and insurance facility are the qualities of compensation and benefits that the employees look for the new job to switch.
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Only The City Bank provides leave fair assistance.
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The Bank Asia and The City Bank provides health insurance facilities.
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For all the banks gratuity will be activated after 10 years from the joining date of an employee.
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Fifty percent of the employees are 25to30 years aged people are worked in that sector.
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We find that 25 percent female employees are involved in this section.
Also 25 percent of employees are unmarried. 50% of married employees spouses are also gainful employee. About 70% of the employees are live in rented house. From our survey we found that no banks provide launch facilities but only The BASIC Bank provide lump sum amount from their own branch expenditure to the employee. 4.2 Criticism of methods There are some limitations behind this term paper. These are – •
There was a lack of primary and secondary information.
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It was very hard to get the real information.
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Bankers can be biased when they are talking about the very confidential information.
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To prepare this report we have surveyed only 4banks.
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We have failed to cover more banks for our survey.
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Small population of survey can give bias result.
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Money is a vital factor to prepare a perfect report though we are the student, so we have faced this problem.
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It is very difficult to do any survey on banking sector.
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In order to response to the question for the survey, banker had to go through the salary pay slip several times which was annoying for them and us.
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We seemed to be unreliable to them incase of having confidential information, that is why it was hard to get real information.
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They ware not clear to few questions (i.e. cost of the company for the position, gratuity, group team life insurance, basic mid point) so we had to elaborate to them.
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The survey being with in official time, it was interrupting the continuity of their work. So some of them ware hurry and some responded after finishing their work.
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They felt insecure to give cell phone number and visiting card.
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Some of them ware not interested to us.
4.3 Corporate implications considered. Now a day banking sector is growing sector. It works as service provider. Bank gives different types of facility to the employees. During the requirement of employees, employers provide salary and benefit as well as other facilities to their employees as per qualification. But in some cases, employee cannot get right position as well as salary in spite of having qualification. So employer should give facilities as per qualification to make the employee satisfied. If employee is not satisfied with his position as well as salary and benefit, he obvious will think and try to switch the job. Some employee want good environment, some want good environment as well as position. Also some employee wants only high salary. In terms of benefit; some wants house facility, some want transportation facility, and some want both. Every employee wants different types of benefits. Employer should provide salary and benefit as well as compensation to their employees. Employer can know demand and facilities of an employee by salary and benefit survey. Eventually, salary and benefit survey is most important for banking sector.
5.0 Recommendation •
By comparing the take home salary for the four banks, the BASIC bank pays the lowest take home salary. so they have to increase their pay sleep.
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Thus the price of commodities increasing day by day, that’s why, they should give minimum tk 30, 000 as take home salary for the officer’s level.
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Now a days, house rent is going to be high so that the bank have to provide hundred percent house rent on basic salary.
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Bank should provide pick and drop facility and they should emphasize on pick facilities to reach the employees to the office at the right time.
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Bank is a service provider sector. It is necessary to communicate with their clients. So that bank should provide mobile phone bill facilities with corporate SIM.
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The city bank and the NCC bank should also provide annual incentives as 6 times of their annual basic salary. Same as the Bank Asia and the BASIC bank need to provided the 6time annual intensives.
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All the bank should provide or increase or include leave fare assistance, health insurance, children education fee, festival allowance, profit bonus, house rent allowance, transportation allowance, mobile phone bill facility, dining room facility, prayer room facility with separate for woman, overseas visit facilities, short distance working facility as the salary and benefits components those are most alternative to the employees of banking sectors.
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In banking sector, it is necessary to take steps for female to involve in this sector.
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To establish house facilities for every bankers.
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For our perception at least we recommended that when the bank recruits employee then the salary and benefits structure of the employee should be created on the necessity of the employee.
6.0 Conclusion In this challenging era every sectors are growing challengeable for any sector. And for the service provider organizations it’s also very much challenging time to overcome. Now banking sector is one of the growing service provider sectors in Bangladesh. And the employees of the banks are provides the desired service for which now this is the top service provider sector in all over the world. So it’s very much emphasis able part to fulfill the job satisfaction of the employees. For this employers should take necessary action to put the perfect employees into the perfect position with fulfilling their Job satisfaction by matching their experience, behavior, qualification etc. Bibliography •
www.google.com
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www.reportbd.com
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www.bangladeshinfo.com/business/banking01.php
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Shah Alam, officer, Bank Asia.
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Rahmatullah khan, director, The city Bank
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Mahabubur Rahman, principal officer, NCC Bank.
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Md. Salim, D.G.M, BASIC Bank.
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Malik Nawaz Adi, student, EWU.
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Appendices
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Survey questionnaires on banking sector (Bank Asia, The City Bank, NCC Bank and BASIC Bank)