Compensation Scheme at Emirates Airlines
Compensation is a critical aspect of human resource management as it controls the functioning of the man power in an organization. The term refers to modes through which an organization remunerates its employees as well as the associated benefits package. In any organization, the compensation should be simple, aligned to organizational culture and accommodating. Emirates Airlines, as a contemporary organization, offers attractive compensation to its employees in accordance with labor laws and also in line with the compensation rates of other major airlines. The compensation scheme at Emirates Airlines includes cash and non-cash items as well as information relating to employee compensation.
The cash elements comprise of a basic salary and other benefits such as housing and transportation allowances, and profit shares depending on organizational performance. The profit shares are awarded after the calculation of the annual profit accrued by the organization and can be worth two to fourteen weeks salary depending on the performance of the company during that year.
In terms of non-cash items, the Emirates employees are awarded annual leave which is a minimum of 30 days. For senior employees at the organization, leave days are longer every year. Additional 10 days are available for national holidays. In addition to this, the employees are also entitled to an end of service gratuity which is calculated depending on the total time the employee has spent at the company.
Emirates employees enjoy the privilege of being given leave tickets during their annual leaves for themselves and their dependants who may wish to travel. In case the senior permanent employees desire to further their studies, they are supported by the organization. The company also has personal insurance and life insurance covers for employees in case they are injured in they are injured in the cause of duty. Otherwise, in case of ordinary illness, the employees get to use their medical cover which is also provided by the company.
While working for Emirates Airlines, all the employees are expected to register with the government’s pension scheme. The employees contribute to the pension scheme on a monthly basis and are allowed to receive a provident fund, to which they contribute 5 percent of their salaries monthly. During the period of service to the organization, the employees are also given a company credit card which they can use at any destination since they are allowed to shop en route their flights. To the company employees, the compensation scheme for Emirates Airline is very beneficial as it satisfies various needs associated with the company. The compensation thus adds value to the lives of customers.
From the point of view of various compensation schemes at Emirate Airlines’ is advantageous because of various reasons. First, the compensation involves a basic salary that is not taxed which is awarded according to the position held and the level of education attained. The second advantage relates to the inclusion of medical cover in the compensation scheme for the company. The employees are also assured of well being after leaving employment due to the various saving schemes available to them.
While the compensation scheme at the organization has various benefits, the key limitation of the scheme is that it lacks accountability and transparency. The scheme also fails to place limits on the compensations awarded to employees depending on positions and education levels. Consequently, revision of the compensation scheme is necessary as it can result in great losses for the company due to the lack of limits. The organization lacks details of employee compensation data (Bengtsson and Hand 313). It is necessary for any compensation scheme to be flexible to management changes (Griffin 231) as well as capable of balancing between market pressures and internal equity.
Bengtsson, Ola, and John R. M. Hand. “Employee Compensation in Entrepreneurial Companies.” Journal of Economics & Management Strategy 22.2 (2013): 312-340. Business Source Complete. Web. 21 June 2014.
Griffin, Ricky W. Management Fundamentals. Mason, OH: South-Western Cengage Learning, 2012. Print.
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