Report on Employee Benefits
Table of Contents Topic Page Number 1. Profile of AB Bank6 2. Organizational Objectives 9 3. Employee Objectives 9 4. Employee Benefit10 5. Categories of Employee Benefit in AB Bank10 6. Required or Mandatory Security10 7. Provident Fund11 8. Holiday Pay-11 i. Vacation11 ii. Leave of Absence11 9. Health and Insurance Benefits-12 i. Life Insurance and Auto Insurance12 10. Transport Facilities 13 11. Loan 13 12. Bonus 13 13. Recreation Facilities13 14. Neat and Clean Working Environment 13 15. Non-financial Benefits-13 i. Stock Benefits13 ii. ESOP (Employee Stock Ownership Plan)14 iii. Educational Benefit14 iv.
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Cafeteria Plan14 16. Reasons of Providing so many Benefits14 17. Comments and Recommendation 15 Executive Summery This report is on the employee benefits of AB bank. Employee benefits are various non-wage compensations provided to employees in addition totheirnormal wages or salaries. AB Bank commits to nation to take a lead in the Banking sector through not only its strong financial position, but also through innovation of products and services. It also ensures creating higher value for its respected customers and shareholders. The bank has focused to bring services at the doorstep of its customers, and to bring millions into anking channels those who are outside the mainstream banking arena. This bank is serving their employees to fulfill the employee’s need. Young employees tend to favour benefits that can be frequent or immediate use such as vacation days, holydays, and flexible working hours. Older employees are usually security conscious, preferring life insurance and retirement related benefits. AB bank’s purpose of giving the benefits is to increase the economic security of employees. All the benefit is really convenient to retain its human resource and motivating.
AB Bank Limited is committed to focus to all its energy not only on its customer as well as its employee. Profile of AB Bank AB Bank Limited, the first private sector bank was incorporated in Bangladesh on 31st December 1981 as Arab Bangladesh Bank Limited and started its operation with effect from April 12, 1982. AB Bank is known as one of leading bank of the country since its commencement 29 years ago. It continues to remain updated with the latest products and services, considering consumer and client perspectives. AB Bank has thus been able to keep their consumer’s and client’s trust while upholding their reliability, across time.
During the last 29 years, AB Bank Limited has opened 82 Branches in different Business Centers of the country, one foreign Branch in Mumbai, India and also established a wholly owned Subsidiary Finance Company in Hong Kong in the name of AB International Finance Limited. To facilitate cross border trade and payment related services, the Bank has correspondent relationship with over 220 international banks of repute across 58 countries of the World. …………………………………………………………………. In spite of adverse market conditions, AB Bank Limited which turned 28 this year, concluded the 2008 financial year with good results.
The Bank’s consolidated profit after taxes amounted to Taka 230 cr which is 21% higher than that of 2007. The asset base of AB grew by 32% from 2007 to stand at over Tk 8,400 cr as at the end of 2008. The Bank showed strong growth in loans and deposits. Deposit of the Bank rose by Tk. 1518 cr ie. , 28. 45% while the diversified Loan Portfolio grew by over 30% during the year and recorded a Tk 1579 cr increase. Foreign Trade Business handled was Tk 9,898 cr indicating a growth of over 40% in 2008. ………………………………………………………….. The Bank maintained its sound credit rating in 2008 to that of the previous year.
The Credit Rating Agency of Bangladesh Limited (CRAB) awarded the Bank an A1 rating in the long term and ST-2 rating in the short Term. Innovative products and services were introduced in the field of Small and Medium Enterprise (SME) credit, Women’s Entrepreneur, Consumer Loans, Debit and Credit Cards (Local & International), ATMs, Internet and SMS Banking, Remittance Services, Treasury Products and Services, Structured Finance for Corporate, strengthening and expanding its Islamic Banking activities, Investment Banking, specialized products and services for NRBs, Priority Banking, and Customer Care.
The Bank has successfully completed its automation project in mid 2008. It envisages enabling customers to get banking services within the comfort of their homes and offices. ……………………………………………………………………….. AB Bank has continuously invests into its biggest asset, the human resource to drive forward with its mission “to be the best performing bank in the country. ” AB is recognized as the people’s choice, catering to the satisfaction of its cliental. Their satisfaction is AB’s success. Vision Statement “To be the trendsetter for innovative banking with excellence & perfection”
Mission Statement “To be the best performing bank in the country” Organizational Objectives Time-off benefits such as vacations, holidays, and rest breaks help employees reduce fatigue, enhancing productivity during the hours when the employees do work. Similarly, retirement, health care, and disability benefits may allow workers to be more productive by freeing then of concern about medical and retirement costs. If there benefits were not available, employees might elect to form a union and collectively bargain with the employer. Although collective action is legal, employers such as Intel prefer to remain nonunion). * Reduce Fatigue * Discourage Labor Unrest * Satisfy Employee Objectives * Aid Recruitment * Reduce Turnover * Minimize Overtime Costs Employee Objectives The real advantages to employees of employer provided benefits are lower costs and availability. For example, insurance benefits are usually less expensive because the employer may pay some or all of the costs, as Intel does. Group plans save the cost of administering and selling many individual policies.
The insurer also can reduce the risk of adverse selection, which occurs when individuals sign up for insurance because they are heavy users. Actuaries- the specialists who compute insurance rates- can pass on these savings in the form of smaller premiums even if workers say the entire premium. Employee Benefit Today’s workers expect more than just an hourly wage or a salary from the employer. They want additional considerations that will enrich their lives. These considerations in an employment setting are called employee benefits.
Employee benefits have grown in importance and verity over the past several decades. To get more from workers AB bank tries to give their best benefits to their works. The irony, however, is that while benefits must be offered to attract and retain good workers, benefits as a whole do not directly affect a worker’s performance. Benefits are generally membership based, offered to employees regardless of their performance levels. Categories of Employee Benefits In AB Bank Today’s organizations must satisfy the diverse benefit needs of their employees. They adjust benefit programs to reflect a different focus to chieve the goal of “something of value” for each worker. Banks operating in Bangladesh must provide certain benefits to their employees of whether they want to or not, they must be provided in a nondiscriminatory manner. AB bank is also giving some extra employee benefits with mandatory employee benefits in order to retain employees. Categories of employee benefit in AB bank- Required or Mandatory Security Government requires that employers provide a certain limit of protection or a security floor for each employee. There are three primary area of compulsory security. Workers Compensation- AB bank is offering employee insurance that provides income continuation if a worker is injured on the job. It may cost more to subscribe to health coverage, the cost is still minimal compared with the costs of a disastrous illness. Provident Fund Over 90 percent of full time workers at companies with more than 100 employees are covered by retirement plans, according to the employee benefits Research Institute. Pension plan are considered rewards for long service and are not incentives to work more efficiently of effectively unless the premium is thee to a stock option plan, as scars is.
AB bank’s retirement plans are used primarily to retain a loyal workforce. A fixed percentage of salary has been given by AB bank as pension. Holiday Pay After employees have been with an organization for a specific period of time, they usually become eligible for a paid vacation. AB bank provides pay for all established holidays such as Eid, Puja, New Year’s Day, Memorial Day, Christmas and other scheduled holyday. The reason behind paid holyday is to provide a break in which employee can refresh themselves. i. Vacation
AB bank offers paid vacations that range from one to six weeks per year. In off poll, employees rated paid vacations and holidays as the third most important benefit behind medical insurance and pension. ii. Leave of Absence Leaves are given for – * Jury Duty- When a person is called for jury duty in the, that service is usually not optional, one must attend or face strict penalties. Employers are not allowed to fire an employee simply for being called to jury duty. AB bank employees are in a paid status of leave for the time they spend by serving jury duty. Election- Employees will get leave of absence during election. * Sickness- If any employee got sick during working days, then the employee will get leave of absence. * Maternity- If any female employee of AB bank becomes pregnant while in employment, she is entitled to take maternity leave. The entitlement to a basic period of maternity leave from employment extends to all female employees in AB bank (including casual workers), regardless of how long she has been working for the organization or the number of hours worked per week. Health and Insurance Related Benefits
It is big challenge for organization to maintain the adequate coverage by limited fund. Employers offer are various types of coverage including- * Life and Auto Insurance- Life and auto insurance is a valuable benefit to offer employees. It plays a major role to attract and retain good quality staff. Employees of AB bank should have life and auto insurance. Health Benefit Cost containment method * Employee Co-payment * Employee Payment of Deductible * Self Funded Insurance * Wellness Program * Providing More Information * Restriction on Psychiatric and Substance Abuse Program Transport
Transport facilities are always available for employees. But there are difference between transport facilities for the officer and employees. Loan Staff banking privileges, including special interest rates for car loans, sundry loans and home loans. Bonus AB bank gives bonus for all the employees and it is given in the two Eid. But how much get it’s depends on the position. Recreation AB bank tries to keep their employees enthusiastic all the time. Every winter there is a picnic for all the employees of AB bank outside Dhaka with full family.
Neat and Clean Working Environment Working environment is a big factor for workers. Today’s workers like to work in a cool air fresh environment. AB bank offers a very neat and clean working environment and well furnished office. It’s very important to provide a healthy environment to keep employees healthy. Non-financial Benefits The use of a company car, company expense account, club membership, help in buying and selling a home and the use of company owned report condominiums are example of perks available to manager, executives, and some employees.
AB bank offers several non financial benefits like- Stock Benefits Employee thrift, saving, or stock purchase investment plan are also popular. For example in a stock option plan am employee is often guaranteed the right to buy share of company stock at a discount or certain price. Employees who are working for AB bank for 20 years or more they will be eligible for stock benefit. Core employees will have these unique facilities. Employee is often guaranteed the right to buy share of company stock at a discount or a certain price.
ESOP (Employee Stock Ownership Plan) When stock is provided as a pan of profit-sharing plan an employee stock ownership plan is developed. When AB bank get certain super benefit then provides some benefit to employee stock owner. Educational Benefit AB bank offers free courses to employees in areas such as computer skills upgrading, business writing and communication, and project planning and training. Cafeteria Plan Because of the verity of option in the benefit area many employers have shifted to or are considering cafeteria plan.
As noted earlier cafeteria plan allows employees to pick and choose from a variety of benefit options much as a person choose food at a cafeteria. AB bank has their own cafeteria for the employees. Reasons of Providing so many Benefit We must realize that employees may be paying more for or getting less of the benefits that employers offer. Economic hardships are a reality, and cost cutting measures are mandated. Employees must be willing to accept less if they are to progress in the future. In today’s competitive job market, health insurance and life insurance can be a highly effective means of attracting and retaining employees.
Continuous improvements, increasing benefits and client work that employee’s value has all helped improve morale and loyalty. In AB Bank, the employees are reward for their valuable contributions with competitive salaries and benefits and great incentives. Comments and Recommendation AB Bank Limited, the pioneer private Bank of the country has created a sense of mass participation through its diversified activities over the last 28 years. Their numbers of client’s service recovers and supporters have been increase rapidly. Even their employee number is now around 2000.
They are maintaining their banking business with their 82 branches. For its diversified banking service, it has got a wide range of publicity and created a special image the banking area in the country. ABBL has started making profit from 1985 to still now. Now they are the second highest profit making organization among the private commercial banks of Bangladesh. As because AB Bank believes in modernization, AB bank should pay overtime to the officer who works beyond the working hours and the bank should provide daycare center for children if possible.