Sharing is caring!
Employee compensation and benefits in HRM have become one of the prime concerns for the Human resource planning process. It helps to attract the most talented employee to the organization and ensures the highest employee satisfaction by establishing strategic pay plans in hrm. As a result, the HR departments always remain watchful while preparing compensation and benefits pay plan.
Nowadays it has become the prime part of the corporate strategy to achieve goals and objectives. Besides, the other organizations’ educational institutes need better compensation and benefits pay plan to ensure higher quality faculties, as well as skilled, administers. This report aims at preparing an effective compensation and benefits plan for a university named Dream University. The HR departments are responsible to prepare and maintain the pay for performance and financial incentives.
The Dream University is the most famous private university in Bangladesh with excellence in providing quality higher education in the country. This educational institution had been established in 1990 under the Private University Act 1992 (Replaced by Private University Act 2010).
Dream University is accredited by the University Grants Commission (UGC) and approved by the Ministry of Education, Government of Bangladesh. It has recently been accredited by the international educational institutes.
The Dream University is situated at Gazipur in Dhaka on 5 acres of land. It comprises 5 faculties each with 6 divisions. It has more than 3,000 students and 900 employees including highly qualified faculties. This university is committed to providing world-class education in the country.
It has a qualified panel of faculties with special distinctions and achievements. Moreover, it has a world-class educational arrangement where students are encouraged to flourish their knowledge and ideas and can contribute to the welfare of the country as well as of the world.
Dream University will be and remain a hub of brilliance in higher education. It will gain recognition, nationally and globally and will attract students, faculty, and staff from all parts of the world.
The mission of Dream University is to produce knowledgeable graduates in their selected disciplines who will have prolific careers or choose to engage in advanced studies.
Organogram of Dream University
Figure – 01: Organogram: The Dream University
Types of employees
There are 2 types of employee in the academic institution, –
1) Non-Teaching Employees & 2) Teaching Employees (Faculty)
Non-Teaching Employees are of 2 types. They are –
1) Administrative & 2) Office Staffs
- Administrative Employee:
Administrative employee means the employee appointed to do the administrative operations for the university. The employees holding the following positions to be considered as an administrative employee:
- Administration: Registrar, Director, Deputy Director and Assistant Director, Finance Officer, Deputy Registrar, Superintendent, Accountant, Senior Assistant, Junior Assistant, Librarian, Deputy Librarian, Assistant Librarian, Placement and Training Officer and Student Counsellor.
- Others: Typist, Stenographer, Telephone Operator, Record Clerk, and Attendee.
- Teaching Faculties:
Teaching faculties are the employees who are engaged in the teaching activities at the university. The employees holding following positions to be considered as teaching faculties:
Professor, Associate Professor, Assistant Professor, Lecturer, Professor of Eminence, Visiting Faculty.
- Office Staffs:
Office Staffs means office personnel in the university who are appointed to perform the daily roster jobs. The employees holding following positions to be considered as teaching faculties: Senior Technician, Technician, Senior Instructor, Instructors, Operator, Library Assistant.
Job Analysis and Job Description: Administrative Employee
Job Analysis is a process to identify and determine in detail the particular job duties and requirements and the relative importance of these duties for a given job. Job Analysis is a process where judgments are made about data collected on a job. Job Analysis can be used in compensation benefits and pay plan to identify or determine the skill levels of the employees, compensable job factors, work environment (e.g., hazards; attention; physical effort), responsibilities (e.g., fiscal; supervisory) and required level of education (indirectly related to salary level).
A successful job description specific the primary functions of the job, how the tasks will be carried out, and the necessary skills needed to perform the job. It should anticipate employee growth and potential problems with misunderstanding. That is, a job description is not just an analysis of the position; it should also address potential questions about the position in the future.
Writing job descriptions is an important step in planning your staffing programs. They form the foundation for many important processes such as job postings, recruitment, selection, setting expectations, compensation, training and performance management. Job descriptions should give a brief overview of the role, how it relates to company vision, a list of key responsibilities, requirements, qualifications (http://www.whatishumanresource.com).
The Dream University may follow the following job description regarding the administrative employees.
- Work with academic boards, governing bodies and task groups
- Provide administrative support to a team of lecturers, tutors or teachers
- Manage the student life cycle from registration/admission to graduation/leaving
- Assist with recruitment, public or alumni relations and marketing activities
- Draft and interpret regulations
- Deal with queries and complaints procedures
- Coordinate examination and assessment processes
- Maintain high levels of quality assurance, including course evaluation and course approval procedures
- Use information systems and prepare reports and statistics for both internal and external use
- Participate in the development of future information systems
- Contribute to policy and planning
- Manage budgets and ensure financial systems are followed
- Purchase goods and equipment, and process invoices
- Supervise other administrative staff
- Communicate with partner institutions, other institutions, external agencies, government departments and prospective students
- Organise and facilitate a variety of educational or social activities.
Job Analysis and Job Description: Faculty
The job description of the faculty members contains the overseer of the design and development of the curriculum, and deliver a range of program of teaching to the students, in order to ensure teaching within the quality assurance framework of the university. To lead the development and implementation of the university’s research strategy and co-ordinate research activity within the specific subject area.
Main Duties and Responsibilities
Teaching and learning
- To oversee the design and development of the overall curricula, and develop and deliver a range of program of study (sometimes for entirely new courses) at various levels.
- To develop the quality assurance framework within the university’s overall framework, including the validation and revalidation of courses, and student admission and assessment.
- To transfer knowledge including practical skills, methods and techniques.
- To encourage the development of innovative approaches to course design and delivery and ensure that teaching design and delivery comply with the quality and educational standards and regulations of the department.
- To challenge thinking, foster debate and develop the ability of students to engage in critical discourse and rational thinking.
- To supervise student projects, field trips and, where appropriate, placements.
- To set, mark and assess work and examinations and provide feedback to students.
- To ensure that the teaching content and methods of delivery are in accordance with equal opportunities and respond to issues relating to staff and student needs.
- To lead the development and implementation of a research strategy.
- To lead and co-ordinate research activity in the subject including determining relevant research objectives and preparing research proposals
- To lead research and collaborative partnerships with other educational institutions or other bodies.
- To write or contribute to publications or disseminate research findings using other appropriate media.
- To seek practical application of research findings.
- To make presentations at national and international conferences and similar events.
- To carry out independent research and act as a principal investigator and project leader.
- To update knowledge and understanding in field or specialism. Communication
- To disseminate conceptual and complex ideas to a wide variety of audiences using appropriate media and methods to promote understanding.
- To prepare and submit proposals and applications to external bodies, e.g. for funding and accreditation purposes.
Working Relationships and Contacts
People Management and Teamworking
- To chair committees and participate in university’s decision-making and governance.
- To lead and develop internal and external networks to foster collaboration and share information and ideas, promoting both the subject and the university.
- To promote and market the work of the department in the subject area both nationally and internationally.
- To exercise academic leadership for all subject area teaching and research activities.
- To act as a line manager, supervising the work of others, for example in research teams, projects, or as PhD supervisor when required.
- To ensure that staff is suitably qualified to work within their own area.
- To appraise and advise staff on personal and career development plans.
Student and Staff counseling
- To be responsible for dealing with referred issues for students within own educational programs.
- To act as a personal tutor, giving first line support.
- To provide first line support for colleagues, referring them to sources of further help if required.
Job Analysis and Job Description: Office Staffs
The job description of the office staffs includes the following official duties and responsibilities.
Duties and Responsibilities
- Collaborate with management to complete necessary projects; work independently on prior delegated tasks.
- Ensure an organized, clean, and tidy workspace.
- Maintain and re-stock office supplies as needed.
- Monitor and use office equipment and materials (computers, printers, fax machines, copiers, physical files, etc.)
- Complete basic bookkeeping and record keeping duties.
- Report any problems with office equipment; help resolve the issues if possible.
- Answer phones, direct calls, take and deliver messages as needed; prepare outgoing mail (including prepping larger packages for sending); sort and deliver incoming mail to appropriate persons.
- Help to immediately resolve and mediate complaints.
- Arrange and schedule meetings, appointments, and events for management, including coordinating calendars and securing meeting spaces; plan travel arrangements for out of town conferences; keep calendars and remind all parties of upcoming events
- Take meeting notes and transcribe into email, document, or spreadsheet form.
Rank wise pay structure
Rank wise pay structure is one of the compensations pay to determine the method used popularly by the HR managers nowadays. Under this method organization’s all jobs are ranked first then compensation pays are prepared basing on the job natures and job responsibilities. Job positions with higher responsibility allow the employees eligible for a higher compensation payment. It is actually a hierarchically measured compensation policy where employees with higher position get a higher salary.
Developing a workable pay plan
A workable pay plan ensures an effective pay structure for the organizations. It safeguards employee satisfaction, reduces absenteeism and employee turnover and consequently builds an effective workforce for the organization. There are various issues to develop a workable pay plan. The Dream University considers the following facts to develop a workable pay plan:
- (1) Reviewing the Market:
The HR department of The Dream University reviewed the current market status and surveyed the salary and based on the information set their pay structure. They also considered the 8th National Pay Scale – 2015 to set the compensation benefits.
- (2) Benchmarking Job Positions:
The Dream University at least once-per-year does salary benchmarking to be able to identify employees who are at a “high flight risk” of turnover and be able to make smarter decisions about where it allocates its labor budget.
- (3) Developing a Compensation Plan:
Without a formalized compensation plan, organizations often miss an opportunity to structure their pay decisions in a way that support business goals. As organizations grow, the costs of compensation continue to rise, and without a formalized plan in place, they often experience problems with pay inequities, employee retention, and engagement. Simply put, it’s easier and more cost-effective to take small steps toward developing a smart compensation plan now than it is to alter your course later down the line. As a result, the Dream University prepared this compensation plan.
- (4) Communicating Compensation Strategy:
If an organization go through the process of creating a compensation plan, it mustn’t forget to let its employees know about it. In theory, compensation strategy should be reiterated and support your business goals. So, it’s important to communicate to employees how their work aligns with the goals of the organization, and how their compensation reflects that. If it is not shared with employees, and make its investments in talent clear to them, it’ll be surprised by the positive effect it has on employee morale. The Dream University always let its employees know about its compensation strategy properly.
Develop a Pay Grade
A pay grade is a step within a compensation system that defines the amount of pay an employee will receive. The pay grade is generally defined by the level of the responsibilities performed within the job description of the position, the authority exercised by the position, and the length of time the employee has performed the job. Responsibilities, and hence a higher pay grade, are extended to employees who manage the work of other employees. Growing levels of management responsibility experience increasing levels of pay within the pay grade.
Pay grades provide a framework for compensation by defining the amount of pay available at each step in the employment process.
The pay structure or salary structure defines the compensation given to the employees. It shows the breakup of the salary into various components. Based on various criteria such as the professional experience or employees, or grades or bands the employees are categorized under, different pay structures may be defined in an organization. One pay structure may be applicable to multiple bands or grades and one band or grade may have multiple pay structures.
The following factors are considered by the HR of Dream University to calculate pay structure.
- (1) Basic Wage/Salary:
Basic salary refers to the particular amount of money an employee is paid prior to the application of any additions. Basic salary differs in job positions and experiences.
- (2) Dearness Allowance (DA):
Dearness allowance is a cost of living adjustment paid to the government employees and pensioners of the same. In Dream University DA is a minimum 20% of basic salary.
- (3) House Rent Allowance (HRA):
This allowance is used by the employee to meet the rental expenses for his/ her accommodation. The Dream University provides at least 25% of basic salary as an HRA.
- (4) Healthcare Fund:
The Dream University provides its faculty the benefit of Healthcare Spending Account (HCSA). This account can be used to pay for any medical expenses that are not covered or only partially covered by his/her other benefits. There is no HCSA base amount, but they may allocate a sound amount of money (up to 15% for faculty members) to this account.
- (5) Insurance:
Both Teaching (Faculties) & Non-Teaching employees are covered by a group personal accident cum hospitalization policy. The premium is paid by the management during January each year. The benefits of the scheme are,
- (i) For death and permanent total disablement, only if arising out of accident: Faculty – a sum of BDT2,00,000/- (two lakh taka only) per person and administrative and office staffs – a sum of BDT 1,00,000/- (One lakh taka only).
- (ii) Coverage of medical expense to the tune of BDT 70,000/- (seventy thousand taka only) per person for hospitalization / medical expenses incurred as an inpatient for grievous injuries arising out of accident only.
- (6) Provident Fund:
Both Teaching & Non-Teaching employee who joined in this Dream University after completing the age of 57 years from the date of joining in service are enrolled under the PF scheme. The deduction of PF contribution from the employees are as follows:
|Faculty Members||12% of their pay (Both Basic + DA put together)||BDT 20,000/-|
|Non-Teaching Employee||10% of their pay (Both Basic + DA put together)||BDT 15,000/-|
Table – 05: Provident Fund Pay Structure
- (7) Leave travel allowance (LTA):
Leave Travel Allowance (LTA) is a type of allowance which is given to an employee from his employer to cover his travel expenses when he is on leave from work. Sometimes it is also known as Leave Travel Concession (LTC). Only faculty members are eligible for this type of allowance.
Strategic pay plan
Strategic pay plans refer to the policies and decisions on how organizations give compensation to its employees that may satisfy employee as well as achieve organizational goals and objectives.
Strategic pay is payment being made to employees, focusing more on the strategic perspective as to how & when the pay should be disbursed to ensure that the employee is performing to the fullest. Pay in the literal meaning refers to the compensation or remuneration a person expects after doing his/her job. It could also refer to as the benefits that the person gets which he can redeem.
The Dream University has formulated a strategic pay plan to ensure the best employee at every level in the university either it is administrative or teaching. The objective of preparing strategic pay plan by the HR of Dream University is as follows:
- (1) Equity:
The HR of The Dream University believes that a Strategic pay plan may bring equity in the organization. This equity means all the stakeholders of this university will consider their pay as fairly paid which is consistent with the market and the job responsibility.
- (2) Attract Talent:
The Dream University aims at providing the excellent higher education in the country. So, they want to attract the highest qualified faculty as well as the administrative personnel to ensure outstanding education quality with first-rate administration. The authority believes that their strategic pay plan is up to the market and it will necessarily attract a pool of talented personnel to the university.
- (3) Retain Talent:
The strategic pay plan will certainly retain talented employees including faculties and reduce the quitting of a qualified employee.
- (4) New and desired behavior:
Pay should reward loyalty, commitment, experience, risks taking, initiative and other desired behaviors.
- (5) Control of costs:
A strategic pay plan will control the costs of the university. Effective compensation management ensures that workers are neither overpaid nor underpaid.
The strategic pay plan process
The Dream University has followed the following process to set an effective strategic pay plan.
- (1) Research:
The Dream University wants its compensation plan to be at least equal to that offered by similar universities that might be interested in recruiting the same employees. So, it wants to evaluate the total compensation package that its competition is offering. The following factors the university has considered while preparing strategic planning.
- Basic wages/salary
- Bonuses and incentives,
- overtime pay for nonexempt workers,
- paid time off,
- stock options,
- expense accounts and university cars.
- Benefits such as educational expense reimbursement programs, an in-house daycare center, moving expense reimbursement and retirement plans
All these factors matter while preparing a compensation plan.
- (2) Evaluating Different Compensation Models:
There are several compensation models to use in the organization. Some plans place more emphasis on base pay than performance incentives. Others offer employees the chance to share in the organization’s profits to entice them to strive for increased performance and decreased expenses. The Dream University offers merit increases to reward quality employees for their past performance. The university also includes bonuses for employees who are proficient in the latest technological advances to earn additional certifications.
- (3) Determining Costs:
Determining costs is the key issue of the strategic pay plan. It helps the university to take control over costs. Various allowances and increments need to be evaluated properly to determine the exact costs of the university.
- (4) Verifying Compliance:
After drafting the pay plan, the HR department has reviewed the plan to make sure that the strategy it plans does not violate any laws.
Basis of Strategic pay plan
The Dream University’s strategic pay plan is prepared based on the following aspects.
The amount of responsibility that had been handled by the person working upon the job, it also refers to the span of control.
The level of challenges faced while working on the job. The compensation could be based on the persons handling the difficult challenges & going in sequence to the others.
- Supervisory Aspect:
The level of supervisory of the job that is allocated to the person.
- Impact on an organization:
Keeping the values at the core, the plans & ideas that have been implemented in order to add value to the university’s practices already in place.
- University’s Organizational Design:
Depending on the bands & grades, which determine the range of salary an employee gets over a period of time.
- Market Implications: The strategic pay structure should be subject to market constraints, like understanding the current HR & whether the compensation plans are matching those initiatives that are taken.
The compensation and benefits processes belong to the most important HR Processes, which are critical for the organization and the modern HR organization. The compensation and benefits are about managing the personnel expenses budget, setting the performance standards, setting the transparent compensation policies and introducing the competitive benefits for employees.
The organization with effective compensation and benefits drives its personnel costs, manages the performance of employees and rewards extraordinary performance. The compensation and benefits processes introduce transparency into Human Resources and rewarding employees for the achieved performance.
The compensation and benefits provide the managers with the compensation tools to build a difference among employees as the high-performance corporate culture can be built in the organization.
HRM department of Dream University monitors the external job market and optimizes the personnel expenses budget of the organization. The compensation and benefits define the compensation strategy, sets the transparent and simple compensation policy.
Figure – 02: Compensation and Benefits Model of Dream University
The Dream University basically offers two kinds of a Compensation policy for its employees. One is financial compensation and the other is non-financial compensation. The main goal of the human resources department compensation strategy is encouraging the existing workforce to stay and attract qualified candidates to the university.
Perform periodic reviews of salary levels to ensure workers are remunerated competitively. Incorporate an incentive system based on employees’ performance, such as instant bonuses for the sales team once they get contracts or year-end bonuses for reaching performance targets. Determine compensation based on UGC and university regulations and the dynamics in the labor market.
Developed A Compensation Committee
As the University’s HR Department has Compensation and Reward committee, the HR director is the head of the committee and some of the committee member do this work once in a year. The committee member following the Laws of Bangladesh (Labour Law Act – 2006 & Private University Act 2010) is directly affecting employees Benefits & Compensation Policy. They also take help the Department Head and another team to issue this policy.
- Meeting with Head of the Department (HOD) and other Team Members.
- Discuss About Current Market Compensation Policy.
- Decide which employee benefits or reward should replace or supplement based on the current market situation.
- Committee Members:
- o HR Director
- o HR Manager
- o Faculty Development Manager
- o HR Employee Relation Officer
Goals of Compensation Policy
- o Employees Feel they are Compensate/Rewarded fairly/equitability for their contribution to the organization.
- o Employees get motivation or inspiration.
- o Make their work more attractive, as a result, a company can easily meet their goal or target.
Create a Job Performing Evaluation Form
After the meeting with Department Head and other team leaders, the Compensation and Reward team create a job analysis form for each employee and send it to the team leader of each team. The job analysis that the university follow is “Rating Scale Method”. This method is most popular among of the method to do job evaluating and create a form to evaluate each employee properly according to their job responsibility and job performance.
The “Rating Scale Method” basically rate this evaluation:
- Global Scale (Performance Scale)
- Mixed Standard Scale (Choose from Different Statement)
- Behaviorally Anchored Scale
Financial payments (Extrinsic Rewards)
Financial payments of extrinsic rewards are the physical ones that come from an external source (employers) only. A properly designed extrinsic reward can also be emotionally attached to the employees as employees value such rewards.
An extrinsic reward is also directly related to the job performance of the employees but it is not necessary that employees receive a reward every time they accomplish a task. It depends upon the policy of the organization.
There are various ways a company can choose to reward its employees. The Dream University uses the following extrinsic rewards to compensate its employee:
Wages refer to that reward which is received from the employer for the services rendered by the laborer per week, per month, per fortnight or per unit It includes allowances also.
The university pay structure maintains the following wages to compensate its lower level employees.
- Subsistence Wage: The wage that can meet only bare physical needs of a worker and his family is called subsistence wage.
- Minimum Wage: the minimum amount of remuneration that an employer is required to pay wage earners for the work performed during a given period, which cannot be reduced by collective agreement or an individual contract is called minimum wage.
- Fair Wage: Fair wages is an adjustable step that moves up according to the capacity of the industry to pay, and the prevailing rates of wages in the area of educational institutes.
- Living Wage:a living wage is one which should not only provide for food, clothing, and shelter but for some frugal comfort of life, good education to children, some amusement and provision for sickness and old-age including some measure of social security.
A salary is a form of payment from an employer to an employee, which may be specified in an employment contract. It is a fixed amount of money or compensation paid to an employee by an employer in return for work performed. Salary is commonly paid in fixed intervals, for example, monthly payments of one-twelfth of the annual salary.
The Dream University provides a monthly salary to its employees. There are some components of salary that are considered by the HR department to calculate salary.
- (a) Base Salary:
Base salary is a subcategory of basic salary and refers to the initial amount of the basic salary range that’s given to the employee at the beginning of the fixed period. The compensation structure of the Dream University has distinctively mentioned the base salary for every post.
- (b) Basic Salary:
Basic salary refers to the particular amount of money an employee is paid prior to the application of any additions. All the other benefits are calculated based on the basic salary. Dearness Allowance (DA) and House Rent Allowance (HRA) are primarily calculated on the basis basic salary. The basic salary is taxable.
- (c) Gross Salary:
Except for gratuity and provident fund, when all the allowances, bonuses, commissions are added to the basic salary it is called gross salary.
The following allowances are added to the basic salary to calculate gross salary:
- Overtime payments
- Performance-related benefits and commission paid on sales
- Tips and gratuities (where paid by the company, not where paid directly from customers to staff)
- (d) Net Salary:
Net salary is given by the employer after deducting taxes and other deductions such as public provident fund professional tax subtraction etc. The following elements are deducted from the salary:
- Salary sacrifice schemes – for childcare vouchers, share options, and so on
- Pension contributions
- Contributions to a company car or mobile phone
- Repayments against a loan.
- Court order deductions and child maintenance payments.
- Union subscriptions.
- Pay deductions due to industrial action, such as striking
- Charity donations.
- Tax and national insurance.
- The Dream University has a performance evaluation process to measure the performance of its all the employees including faculties. There are two methods in this Dream University to evaluate employees.
- (i) Appraisal Scoring System (PASS):
It is used to evaluate the performance of the teaching staffs that means faculty members. Different scores are used to scale the faculty performance. The following regulations are used in this regard:
- As per Performance Scoring System (PASS), at least score of 2.5 in Faculty Performance Index is required for Assistant Professor while at least 3 for Lecturer to be eligible for the increments.
- Should secure grants from funding agencies/industries for carrying out research in thrust areas.
- Should acquire Consultancy Projects and testing to enhance the visibility of the University.
- Should involve in all authentic activities for the development of the University
- Should participate in national or international conferences and seminar, etc.
- (ii) Service Evaluation Form (SEF):
This method is used to evaluate all staff members (Administrative & Office). Based on the satisfactory report by the reporting officer in the Service Evaluation Form (SEF), the increments will be sanctioned to the employees. Moreover, confidential report on the all-around performance of staff members from the officers also may be taken into account for sanction of increment.
Instead of quarterly or any day throughout the year, the annual increment will be sanctioned twice in a year that is the first week of the month January and other is in the first week of July according to the calendar year. Those who join duty in the middle of a semester will get their first increment after one-year service from the date of their joining. Subsequent increment will be sanctioned from 1st January or 1st July preceding their date of joining duty.
In the event of either postponement/withdrawal of increment for a staff member on disciplinary grounds or otherwise, his/her case will be decided depending on the time duration of such postponement.
A commission is a sum of money that is paid to an employee upon completion of a task. It can be paid as a percentage of the projects return or the money value of the accomplished work. It is usually paid to the office staffs in the Dream University.
There are various commissions provided by the University:
- Base salary plus commission
- Straight commission
- Draw against commission
- Residual commission
When an organization earns profit due to the effort of an individual or group of employees, the organization should appreciate their contribution by giving them additional payment as a bonus. The Dream University provides its employee different types of Bonuses:
- Religious Festive Bonus: 50% of basic salary will be given to the employees as Eid bonus or for Puja.
- Social Festive Bonus: Employees will get 25% of the basic salary as a festive bonus (Baishakhi Vata).
Promotion is directly related to increment in status, payment, and power. In the Dream University first promotion is given to the employees with more than 5 years.
|posts||First Stage||Second Stage||Third Stage|
|Administrative Officer||5 years of service||9 years of service||Above 12 years of service|
|Faculties||5 years of service and 2 research work and publications||9 years of service and 3research work and publications||Above 12 years of service and special achievements|
|Office staffs||5 years of service with outstanding performance record (sacle above 3.5)||9 years of service with outstanding performance record (sacle above 3.5)||Above 12 years of service with outstanding performance record (sacle above 3.5)|
Table – 06: Promotion Policies
Allowances such as Dearness Allowance (DA), House Rent Allowance (HRA) and other allowances if any shall be as fixed by the management from time to time for all regular employees. Proposed allowances are as follows:
- (a) Dearness Allowance (DA):
Dearness allowance is a cost of living adjustment paid to the government employees and pensioners of the same. DA is calculated as a component of the basic salary. This component differs according to the location of the employee. It essentially compensates the difference in cost of living in different states and areas in the country. As a result, it is different for the urban and rural sector. DA is also given with an aim to cushion the effect of inflation. In Dream University DA is granted to ease the inflation effect on the salary of the employees (see table – 07).
- (b) House Rent Allowance (HRA):
House Rent Allowance (HRA) is a salary component paid by the employer to employees for meeting the accommodation expense of renting a place for residential purposes. HRA forms an integral component of a person’s salary. HRA is applicable to both salaried as well as self-employed individuals. The Dream University pays it’s both teaching and non-teaching employees a smart percentage of HRA (see table – 07).
- (c) Medical Allowance:
Medical allowance is a fixed allowance paid to the employees of a company on a monthly basis irrespective of whether they submit the bills to substantiate the expenditure or not. For Dream University’s medical allowance see table – 07.
- (d) Festival Allowance
- (i) All regular employees of The Dream University are entitled to get maximum two festival allowances in a year which are equivalent to their basic pay (not exceed a maximum of amount decided by the competent authority) subject to the completion of one-year service.
- (ii) The contractual employees of The Dream University are entitled to get maximum two festival allowances in a year on the basis of their basic pay as decided by the competent authority.
- (iii) The regular employee less than one year of service & ad hoc/daily basis employees will be given half of basic as festival allowance.
- (e) Transportation allowances:
Transport Allowance, also called Conveyance allowance is a type of allowance offered to employees of a company to compensate for their travel from residence to and from respective workplace location. Allowances are generally offered to employees on top of their basic salary component. In Dream University the honorable faculty members are paid higher transportation allowances (see table – 07).
- (f) Telecommunication allowance:
The Dream University recognizes that the performance of certain job responsibilities may be enhanced by the provision of communication devices or use of home Internet services. Thus, this allowance policy is set by the university management.
The Dream University Allowances
Employees are equally creditable for the organization’s progress or success as much as the employers are. Therefore, The Dream University rewards its employees especially top-level executives and Head of the Departments (HOD) by sharing the profit with them.
- Retirement plan
Retirement planning is the process of determining retirement income goals and the actions and decisions necessary to achieve those goals. Retirement planning includes identifying sources of income, estimating expenses, implementing a savings program and managing assets. Future cash flows are estimated to determine if the retirement income goal will be achieved.
The university gives its employees the following Retirement Benefits:
- Pension Fund:
The pension is granted to the employees for his/her retirement from service on the basis of length of qualifying service rendered and amount of emoluments last drawn. It is actually determined based on the income, service years etc.
- Health Insurance:
Health insurance is one of the most desirable benefits the employees desire for. The Dream University actually provide this benefit to the faculty members. Every faculty gets BDT 10,000 – 25,000 taka as a health insurance premium.
Gratuity is a sum of money paid by an employer to an employee for services rendered in the company. However, gratuity is paid only to employees who complete 5 or more years with the company. It can be understood as a form of tip paid by the employer to the employee for services offered in the organization. The University paid its employee 50% of monthly salary for no. of years he/she completed
4.4.1 Provision for Salary Tax
Generally, the basic salary is taxable. But due to various reasons at present, it is considered by the employees as an irrational deduction from the salary. Respecting the feelings of the university faculties, the Dream University decided that university will bear the tax of the faculty members. As a result, this university maintains a provision for salary tax. It is also added to the salary of the faculty.
Non-financial payments (Intrinsic Rewards)
Non-financial payments or intrinsic rewards are the non-physical rewards. They cannot be seen or touched but are emotionally connected with the employees. In other words, intrinsic rewards can be defined as the feeling of contentment one finds in the completion of any task.
Intrinsic reward is directly related to job performance as a successful task automatically produces it. Higher the success rate, higher will be the rate of intrinsic rewards one receives.
Different people have different perception and therefore, pondering over the fact The Dream University has various forms of intrinsic rewards, some of which are:
- Satisfaction Derived:
It takes lots of efforts, skills, and courage to perform any task and there is no better feeling than the joy one feels seeing his hard work pay off. So, this university promptly communicates and sometimes celebrate the success of the personnel.
Everyone wants to be renowned at the place where they work. It is rewarding for employees when they are recognized by the co-workers and other members of the company for the work they’ve done. If implemented properly, employee recognition can benefit both employer and employees more than any monetary rewards. Thus, the management of this university always recognizes and appreciate the innovative performance of the employees.
- Work freedom or autonomy:
When employees continue to make better output, supervisors may bother less to manage them. The freedom that employees receive to make their own decision and work as per their schedule is also a form of intrinsic reward. This rewards actually fit for faculties with high responsibility and important research works. They can contend while receiving this kind of rewards.
- Goal Setting:
Encouraging employees to set goals and to reach them provides intrinsic rewards and motivation. The Dream University requires all its employees to set goals with regard to personal growth at work, education and the completion of projects. It Provides employees with training on how to set measurable goals and encourage them to set a variety of short- and long-term goals. Moreover, this university gives employees input into university goals as well to make them feel like they are working toward a bigger cause. As employees meet goals and set new goals, they will receive intrinsic rewards and increase their motivation.
- Teamwork and Collaboration:
The Dream University has developed an environment of teamwork and collaboration in order to encourage employees to work together to complete projects and come up with solutions to the problems. Being part of a team and feeling a sense of belonging provides intrinsic rewards for employees (Teaching and non-teaching) because it brings a stronger sense of meaning and responsibility. When an employee appears to lack motivation, other team members will work to encourage that work and make him feel like an important part of the team, building his self-esteem and confidence.
- Meaningful Work:
The feeling that an employee is doing meaningful work every day creates an intrinsic reward. The Dream University HR management has stressed the importance of each position in the university and develop an attitude that each position, from the caretaker to the register, is essential to the well-being of the university. Employees will develop intrinsic rewards having such sense to motivate them to keep working hard for the betterment of the university.
- Positive Communication:
Creating a positive environment and encouraging employees to communicate positively with one another helps provide intrinsic rewards for workers. The management of Dream University always appreciates its employee to perform more. It never delivers any negative words to its employee rather help to do better gradually.
Pay for performance and financial incentive strategy
Pay for performance
Pay for Performance is the compensation program for non-represented employees. Through the performance management process, which culminates in an annual performance review, the goal is to reward higher performance with higher pay.
Meaningful conversations between supervisors and employees about our work at UC Riverside should take place throughout the review period. The annual review, which occurs at the end of the performance year, is a time to celebrate accomplishments, evaluate performance, achievements, and contributions toward the mission and goals of the university and think about how we can grow professionally. Your annual review is also the basis for determining your compensation for the year ahead.
It’s all part of our commitment to provide our non-represented employees with market-competitive performance-based compensation.
Pay for performance plans and systems can transform an organization or department into a results-driven culture where the desire or need to be the best, the drive to receive more income, increased freedom can catapult your organization.
Pay for performance is most often used in more traditional performance and results-driven environments like sales or production but can be extremely effective in driving competition in support roles like Information Technology and Human Resources.
Pay for performance method is used by Dream University from the following purposes:
- Improves Employee Performance:
A compensation plan built like this clearly ties employee performance to an individual, group, divisional, or corporate. An employee is driven by compensation or an end result benefit and is rewarded for their performance. Pay for performance model puts the employee front and in the center of their financial future. They control their destiny and are motivated to work as much or as little as they wish to be compensated for.
This method inspires the administrative and office staffs greatly. The service evaluation form is used for this purpose.
- Improves Retention:
Retaining employee within the university very important especially the faculties. They ensure the quality of services and serves the motto of the university. So, to reduce faculty turnover pay for performance is essential. Moreover, to build a committed workforce The Dream University follows pay for performance model.
- Ease of Administration & Understanding:
Pay for performance policy is very cut and dry. Either an employee performs to a set of standards clearly stated from the beginning or they do not. In the academic institutions like universities employees know the assigned task and therefore, they can easily calculate their desired rate of pay and are self-motivated to reach this goal.
- Increased Motivation:
Pay for performance method creates the opportunity to earn a substantial income that can lead to increased motivation. Since employees are compensated based on performance, they may be more likely to work harder and longer in order to reach income goals. Considering this motivational benefit, The Dream University set its pay policy following it.
Employees who are paid based on their performance are typically judged by results rather than more subjective methods, resulting in increased flexibility. The more the performance, the higher the pay – consequently motivate the employee to perform more.
- Cost Control:
Pay for performance method subsequently helps the university to take control over its costs. Employees are only paid based on their performance. As a result, this university can ensure frugality.
- Best way to utilize employee skills:
Pay for performance motivate employees to perform more and more and therefore the organization can utilize employee skills the most. So, The Dream University uses this method to compensate its employees both teaching and non-teaching.
Pay for seniority
Seniority is the length of time that an individual has served in a job or worked for an organization. Seniority can bring higher status, rank, or precedence to an employee who has served for a longer period of time. And it generally means employees with seniority earn more money than other employees doing the same (or very similar) work.
Seniority is important in some private sector establishments and among professions, skilled trades, and union-represented workplaces. Forward-thinking organizations are less likely to provide a preference for senior employees unless the preference is part of the factors considered in salary, promotion, layoff, and other workplace employment decisions.
In the Dream University pay for seniority is followed regarding faculty staffs. The most senior faculty is more honorable and should be paid higher.
|Professor||Age above 50 and 20 years of experience|
|Associate Professor||Age above 45 and 15 years of experience|
|Assistant professor||Age above 40 and 10 years of experience|
Table – 08: Pay for seniority Structure
Probationary period means a defined period of time during which a new staff member’s performance is subject to formal review for the purpose of determining whether or not the contract of employment should continue. During this time, the staff member is provided with clear job expectations, constructive guidance, feedback, and support to confirm progress and/or identify concerns or deficiencies in performance and conduct and provide opportunities for their resolution.
Faculty members and administrative employees of The Dream University with permanent and continuous appointments, on a full- or part-time basis, are entitled to holiday pay in proportion to their fraction of service, unless otherwise provided in this policy.
Employees and faculty members hired on a temporary, on call, provisional, project, or emergency basis, as well as students hired through the Office of Student Financial Aid and students hired in positions reserved specifically for student employees, are not entitled to holiday pay.
Members of the University staff are eligible for 6 – 9 paid holidays a year — two personal holidays that accrue and are taken as vacation, New Year’s Day (Noboborsho), National Memorial Day, Independence Day, Labor Day as designated in the official University calendar.
Once personal holidays are added to the staff member’s accrued vacation, they are taken in accordance with the policies governing vacation.
Full-time academic staff who hold the rank of Lecturer and above, or Assistant Professor (conditional) and above, are entitled to a vacation period of up to 1 month to be taken during every 12 months of employment.
For part-time staff, excluding sessional appointments, who hold the rank of Lecturer and above, or Assistant Professor (conditional) and above, the vacation entitlement will be prorated according to the percentage of their appointment.
Other academic staff, such as Instructors with regular full-time or part-time appointments, excluding sessional appointments, are entitled to vacation according to the following schedule:
|Length of Service||Annual Vacation Entitlement|
|1 full academic appointment year||2 weeks|
|2 full academic appointment years||3 weeks|
|10 full academic appointment years||4 weeks|
Table – 09: Annual Vacation
Benefits and service strategy
The Dream University’s service strategy is mainly for the faculty employee. This strategy includes the following:
- Providing Teaching Assistant:
The faculties can be provided with a teaching assistant. The salary of the teaching assistants will be paid by the university.
- Benefit for Extra Responsibilities:
There are some extra responsibilities that the employees have to perform for the university. For these responsibilities, the university has a unique pay policy. They are:
- (i) Proctoring Examination (Entrance Exam):
The faculty members who will proctor entrance exam will be honored by the university accordingly. They will receive 500 takas per hour. Moreover, the office staff will receive 250 takas per hour.
- (ii) Taking Interviews:
Attending an interview session while assessing new students or new employee will be considered paid activities by the university and the person involved in such activities will receive pay accordingly.
- (iii) Club Coordinator:
The faculty members will be compensated for their club coordinating activities by the university authority. The pay policy is:
|Grade||Responsibility type||Benefit package|
|2 & 3||Partial coordinator||10%|
|2 & 3||Full time coordinator||15%|
- Honorarium for Organizing Workshop and Seminars:
The faculty members often organize and conduct workshop and seminars on various research topics about social, economic and environmental issues. The Dream University is very much conscious about this workshop and seminars as they help to increase the knowledge of the students and common people. As a result, the HR manager has a pay policy to encourage the professors. The University pays a handsome amount of honorarium determined by the authority time to time.
- Membership of online Journal:
Online journal publication site charge fee for publishing journal. The university will provide it.
|No. of classes||At least 2 courses|
|No. of publication||At least 3 – 5 publications|
Table – 10: Membership fee for the online journal
- Scholarship for children:
The university may provide scholarship opportunity to the faculty children. A faculty with outstanding and recognized performance is eligible for this benefit plan.
- Facilitating Scholarship for foreign higher degrees:
The faculty members of The Dream University have been granted scholarship facilities for foreign higher degrees. The policy regarding the scholarship is as follows:
|Masters||At least 2 years of service and above 2.4 score in (Evaluation Faculty Performance) EFP.||40% of the total fee|
|PhD||At least 4 years of service and at least 3 publications||70% of the total fee|
|Post-Doctoral||At least 5 years of service and at least 5 publications||90% of the total fee|
Table – 11: Scholarship for foreign higher degrees
- Privilege in Different Sectors:
To encourage and entertain the university provides various privilege packages in different social sectors. Such as:
- (i) Discount in Airlines ticket:
The faculty members with more than 10 years of service with this university will get a special discount on airlines ticket twice a year while traveling abroad with families.
- (ii) VIP lounge access:
The professors of this university will be provided with VIP lounge pass so that they may have easy access to them.
- (iii) Banking Facilities:
Banking facilities with credit card service will be available for the professors and the assistant professors of the Dream University.
- Advanced training:
Advance training is especially a part of faculty development program where faculties are time to time provided with various latest training on their respective subject and technologies.
This advanced training includes:
- Latest technological training
- Advanced research
- Latest innovated software and hardware
- Laboratory training
|· At least 5 – 7 years of service with the university.
· Have at least 3 publications.
· Attended all basic and mid-level training already
· Involved in research on current scientific and technological topics
· Attended university’s workshops and seminars.
This advanced training is provided to the faculty members for the following purposes:
- To acquainted with the latest research related technology and methods.
- To increase in his/her subject.
- To enrich his/her research works.
- To make faster his research works.
- To make them more innovative.
There are three types of advanced training provided by Dream University. That is
- (i) International:
International training is only available for professors and assistant who are required to attend international seminars and meeting on totally new topics. This training must be conducted by UN and such type of organizations.
- (ii) Domestic Training:
Domestic training is available for lecturers and associate professors for increasing skills on his/her discipline.
- (iii) Faculty Exchange Program:
The faculty exchange program is an advanced method of faculty training and development. In this program, Dream Universities selected faculty members are sent to the foreign Universities to which Dream University has special alliances. And Foreign faculty also some to Dream University to exchange skills and views.
The Dream University is the largest university in the country with widespread vision and mission to serve the country in the field of higher education. It is committed to provide quality education around the country and contribute to the total development of it and its people.
As a result, it has a great arrangement at every level to make this university a potential one. Like other resources, it has excellent efficient faculty members and administrative officials whose effort already take this university top in the country.
Besides these, the university has a smart compensation and benefits systems that are very apt to attract and retain skilled employees within the university. This compensation and benefits package and their regulation will be followed in The Dream University authentically and all the interested party is indulged to follow this regulation at every step.
Sharing is caring!