For this reason a process consisting of thorough primary and secondary research was carried out. We analyzed the data on EFU from the internet and had a detailed meeting with Mr. Altaf Baig Hear Human Resource department at EFU who provided us with all the details. Throughout this process we got many experiences by witnessing ourselves the corporate pay structures and incentive plans. We would like to help you whenever you require our skills and would like to offer you, in case you need us, in interpreting this report or a section of it.
In EFU medical facilities are given to each and every employee from staff level to the executive level. Initially the medical bills are collected and then they are forwarded to the CMO (Chief Medical Officer) for his verification and signature. After the bills are verified payment vouchers are made. All employees including their families are entitled for reimbursement of OPD expenses against production of actual bills. There is a certain limit of medical expense which varies according to the designation. Travelling Allowance: By Air
For the company trips all employees from Vice Presidents to Managing Directors are entitled to go for First class when going for an airline. All employees having designations ranging from Junior Officers to Assistant Vice Presidents and regular employees are entitled to use Economy class when going for an airline. Managing Director all other Executives are entitled for economy class when travelling abroad. Entitlement given via train All company officers are allowed A/C sleepers whenever they use train as a mode of transportation. Personal or Company maintained Car
If a personal car or a company maintained car is used for travelling from one city to another in a condition where neither air or train facility is available then personal car is given to the employees and petrol expense would be reimbursed. No air, train, or vehicle facility Reimbursements will be made for actual expenses for the purchase of bus tickets and receipts if issued. In case no ticket or receipt is issued, employees will be required to submit an undertaking giving relevant details. Technical allowance Technical allowance is given to the technical staff of the company which is approximately 5% of their basic salary.
Utility Allowance The company reimburses utility bills of all Assistant Vice Presidents and above level employees. There are different policy conditions for different designation levels. Employees having designations of Executive Directors and above get the full amount of utility bill paid from the company. Employees in the designations of Assistant Vice President get a maximum amount of Rs. 30000 reimbursed for their utility bills paid. Entertainment Allowance: All the employees having designation of Vice President and above get entertainment allowance of 6% of their basic salary,
For Executive and above grades, employees’ spouses and children are also provided with health insurance and life insurance policies free of cost. Sick Leaves All the permanent employees have a quota of 10 sick leaves available in a year. Conclusion EFU rewards policies are generally at par with main competitor and much better than other companies in the insurance business, however, a review is required in comparison to other industries such as banking sector where pay packages are much more than insurance industry.
EFU needs to review salary and compensation policies and eliminate the disparity as some of the banks have also started insurance business e. g. PICIC, UBL, etc. which at later stage might give tough competition and attract experienced employees by offering superior pay package. EFU needs to formulate new pay structure as per the sources the company is following a very old pay structure that needs to be amended and the company should provide more power and importance to the HR department as presently the main power lies with the finance department.