Term Report

MANAGING HUMAN CAPITAL

Company: HRSG

By

Ali Akbar
Muhammad Faizan Ul Haq
Muhammad Ali Qureshi
Misbahuddin

Submitted to

Abdul Sami

College of Business Management

Institute of Business Management (IoBM)

Karachi

12th April 2020

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 Table of Contents

1.0 INTRODUCTION TO HRSG ........................................................................................................2

1.1 INTRODUCTION .............................................................................................................................3
1.2 VISION ..............................................................................................................................................3
1.3 MISSION ...........................................................................................................................................3
1.4 CORE VALUES ............................................................................................................................ 3-4
1.5 OUR STORY .....................................................................................................................................4
1.6 SERVICE LINES .......................................................................................................................... 4-4
1.6.1 HRSG RECRUITING ................................................................................................................ 4-6
1.6.2 HRSG OUTSOURCING ................................................................................................................6
2.1 COMPENSATION ............................................................................................................................6
2.2 COMPENSATION STRUCTURE ................................................................................................ 6-8
3.1 EMPLOYEE BENEFITS ..................................................................................................................9
3.2 REVISION & CHANGES TO EMPLOYEES BENFITS ......................................................... 99-13
4.0 RECOMMENDATION ...................................................................................................................13

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INTRODUCTION

HRS Global (HRSG) is a leader in the HR services industry; creating and delivering services
that enable clients to succeed in a highly competitive market place. HRSG offers a range of
services for the entire employment and business cycle. The ultimate objective is to assist our
clients make distinctive, substantial, and lasting improvements in their human capital
management.

Established in 1992, HRSG has offices and affiliates in Pakistan, Sri Lanka, Bangladesh, the
UAE, Saudi Arabia, Kuwait and the United States, with over 300 clients and a total workforce
in excess of 21,000 associates.

HRSG is the advisor of choice among top companies seeking guidance and counsel on senior
leadership needs. They place quality at the center of everything they do, and solicit candid
feedback at every opportunity in order to continually improve our services.

HRSG is a company characterized by a can-do spirit, decentralized management, and an

entrepreneurial atmosphere. The focus of HRSG is to augment productivity through improved
quality, efficiency and cost-reduction for its clients' human assets, enabling them to focus on
their core business activities.

HRSG attracts and retains talented employees by offering competitive compensation and
benefits. They are cognizant of the job satisfaction and career progression needs of their
associates, and provide an environment that fosters their personal and professional growth.

The network of offices enables them to meet the needs of their clients: some of the world's
largest multinational corporations as well as small and medium size enterprises, entrepreneurial
businesses, private equity firms, family-owned companies and nonprofit organizations.
VISION
Turning imaginative ideas into customized HR solutions, in compliance with ethical standards,
helping create exceptional value for our clients, associates, and shareholders.
MISSION
To help customers make distinctive, lasting, and substantial improvement in performance, and
constantly build a great company that attracts, develops, excites, and retains exceptional
people.
CORE VALUES
Customer Satisfaction
We constantly strive to understand the objectives of our customers and provide them with new
ideas and customized products to help them strengthen their competitiveness and performance
in their own industries, both locally and globally.

Value our Associates

We consider our associates to be our internal customers, committing ourselves to their success,
well-being, personal development, career progression and providing them recognition that goes
beyond the regular compensation system

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Team Orientation
We build teams across business divisions with the aim to foster dialogue, share knowledge and
experience and to make optimum use of our synergies and potential.

Creativity & Innovation

We create an efficient, high performing organization through continuous investment in
research and development which allows us to develop innovative products and adapt quickly
to changing business needs.

Integrity & loyalty

We build strong, long relationships with our customers, associates, shareholders, ensuring an
environment with a sense of honesty, mutual respect, and fairness. We expect our people to
sustain these standards at all levels of the company.

OUR STORY
(1992) GETTING STARTED: Syed Ali Azhar established HRS in Pakistan with Outsourcing
and Recruiting.
(2004) IDENTITY REVOLUTION: HRS Global becomes our parent company.
(2005) GLOBAL FOOTPRINT: HRS Global opens US office.
(2007) TECH INNOVATION: HRS Global launches Decibel, a proprietary human capital
management system.
(2009) NEW BUSINESS: BPO services begin.
(2010) NEW BUSINESS: Training services begin.
(2012) NEW CORPORATE HQ & INTERNATIONAL CERTIFICATION: HRS Global team
moves into new contemporary HQ building & HRS Global earns ISO 27001 and SEDEX
certifications.
(2014) NEW BUSINESS & GLOBAL FOOTPRINT: Consulting services begin & HRS
Global opens office in the UAE.
(2016) GLOBAL FOOTPRINT: HRS Global opens UK office.
(2017) NEW BUSINESS & 25th ANNIVERSARY: Tech, Insurance and Staffing are launched
& HRS Global is renamed as HRSG and unveils an updated logo and new website.
SERVICE LINES

HRSG RECRUITING
Delivering the leadership imperative
HRSG is a leading executive search firm with years of experience finding talent that delivers
results. Our recruitment consultants combine professional search experience with industry-
specific expertise. Our stringent procedures ensure that we only shortlist candidates that best
match our client’s requirements. We bring professionalism, integrity and accountability to our
work and handle our relationships with clients and candidates with great care, discretion and
confidentiality.

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RECRUITING SERVICES
EXECUTIVE SEARCH
Wielding a quarter of a century’s executive search experience and exclusive access to premium
talent, we help you find outstanding, disruptive leaders so you can make the best possible
decisions for the long term, the very first time.
BOARD AND CEO SERVICES
If there was a disputable formula to an enterprise’s success, it would lie in the strong alliance
between a CEO and a compelling board. The key to our approach is how we utilize insights to
define criteria that can be evaluated for a director or CEO position in the context of each client’s
framework.
EXECUTIVE PROFILING
Critical selection decisions should not be based on guesswork alone. With executive profiling,
you substantially diminish risk by gaining a comprehensive and objective assessment of
candidates’ capabilities and individual style.
TALENT PIPELINING
Deploying years of market intelligence and knowledge to recognize future trends and shifts we
build a pool of talent that enables us to pipeline candidates, exercising a strategic rather that
reactive approach, as well as ensuring a higher caliber of talent.
PROFESSIONAL SEARCH
At HRSG, we can find you the best executives, but without the right team to support the
leadership, your success is restricted. With our proprietary process, our recruiters are
distinctively equipped to identify and attract professionals at the early, middle, and senior and
executive levels of management.
VIDEO SKETCHING
When time is money, video resumes spanning 1-2 minutes can give you a reasonable insight
into a potential hire even before meeting them in person. Gathering a sense of the individual
through the video can help you save time, reduce recruitment costs and streamline the
recruitment process.
LEADERSHIP ASSESSMENT
Our strategic partnership with The Talent Enterprise (TTE) combines a synergy of research-
based tools, consulting expertise, industry experience and technology to bring you innovative
talent-centric solutions identifying the abilities of your workforce even more precisely.
ONBOARDING
Seamlessly consolidated into the culmination of the executive search process at HRSG, our
onboarding service eases organizations into assimilating new executives effectively. This
minimizes the time it take for them to start effecting meaningful change, leading to long-term
sustainability.
OUTPLACEMENT
To ensure business continuity, maintain employer brands and keep employees engaged, HRSG
Recruiting works with companies undergoing re-structuring or realignment, guiding their
employees through a smooth career transition.

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STAFFING
Finding qualified and experienced talent, while keeping up with changing business needs, can
be a challenge. As your staffing partner, we recruit winning teams for you while significantly
reducing cycle times.
Functional Practices
• General Management
• Informational Technology
• Accounting | Finance
• Supply Chain
• Human Resources
• Marketing l Sales
• Manufacturing l Operations
• Legal l Secretarial
Industry Practices
• Banking | Finance | Insurance
• Healthcare Hospitality | Education | NGOs | Logistics
• Oil | Gas | Energy
• Pharmaceutical | Chemical | Fertilizer
• Tech | Telecom | Media
• FMCG | Beverages | Consumer Durables
• Automobile | Engineering | Building Material
• Retail | Distribution | Textile | Buying Services
HRSG OUTSOURCING
People. Progress. Partnership

HRSG Outsourcing has been providing innovative and professional outsourcing solutions
across industries and functions for 27 years. We believe in shared success for our clients as
well as the talented associates we hire for them. That is why, over 40,000 associates, deployed
in more than 475 locations, serving over 225 local and international clients, trust our services.
Our customizable vendor managed services (VMS) model of outsourcing offers solutions to fit
every business need. Whether your organization needs to staff a single position or outsource a
complete business activity, we can find and manage talent so you can focus on your core
functions and grow your business. We bring 27 years of VMS outsourcing experience and the
flexibility to align with your systems to find you solutions across the board, always in the spirit
of partnership.

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 COMPENSATION

It is the policy of HRSG (the Company) to compensate its employees equitably for their
services, and to reward them in alignment with maintaining internal parity (within the
organization), as well as external parity (with the market). HRSG provides incentives to its
employees for improved performance level achievements in order to maintain and encourage
a culture of performance excellence, where pay-for-performance can be considered when the
Company and individuals achieve their business objectives. This helps HRSG to attract, retain
and motivate its high-caliber human capital, and to remain the Employer of Choice.

The purpose of this policy is to state the Company’s reward (compensation) framework in the
provision of monthly fixed salary (basic salary and monthly job allowances), the factors which
affect the provision of fixed salary, as well as performance-based rewards such as:
performance-linked bonus, profit sharing and commission payouts linking employees’ pay-for-
performance.
This policy supports building a high performance culture where employees are compensated
and rewarded on a differentiated basis, linking their performance contribution and impact to
the Company’s business and financial success.

COMPENSATION STRUCTURE
HRSG is committed to providing a competitive reward (compensation) structure to its
employees which includes fixed monthly salary as well as various incentive plans. The total
reward (compensation) framework has been designed in consideration of following the total
reward principle:

Fixed Salary – (Monthly Gross Salary)

Fixed salary is the monthly Gross salary. The monthly Gross salary may be reviewed annually
and revised based on the following criteria, in the event that the organization meets its corporate
and financial objectives. The monthly Gross salary adjustment (in reference to inflation,
corporate and individual performance as well as market trends) will be paid out annually, at
the end of the Company’s fiscal year.

Inflation Adjustment
A Salary and Benefits survey shall be conducted by the Company annually or every two years
as required based on economic and industry trends. Adjustments will be made to cope with
inflationary regulations where required. This shall be done to comply with the reward
(compensation) policy, and in order to maintain a competitive salary and benefits package.
Performance-linked Increment
Performance-linked increment is the reward for performance paid out at the end of the
Company’s fiscal year and will vary depending upon the performance rating of the employee
as well as the department’s business performance. Minimum qualifying criteria for an
employee’s annual increment will be the completion of one year of continuous service with
HRSG, considering the business meets its corporate and financial objectives.
The annual performance-linked increments will be distributed based on the following
performance rating framework.

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 Performance Rating and Corresponding Scales Increment Percentage
Outstanding (5)
Exceeds Expectations (4)
Fully Effective (3)
Needs Improvement (2)
Unsatisfactory (1)
The annual increment percentage with respect to the performance rating will vary from
business to business and will depend upon the overall performance of the business during the
fiscal year. The adjustments will be made and payments will be disbursed after approval from
the Business CEOs and HRC.

Market Trend
In order to stay competitively aligned with the market, and to attract, hire and retain best-in-
class talent, results from the compensation and benefits survey conducted annually or every
two years are reviewed. Salary adjustments are made if necessary, in accordance with the
findings of the survey, and upon approval of the HRC, which includes the Business CEOs.

Performance-linked Bonus
A performance-linked bonus is paid to an employee as a reward for achieving pre-determined
business and individual goals and targets. However, performance-linked Bonus is not
guaranteed and will be paid at the end of the fiscal year based on the following:

Individual Performance
Bonus payout depends on the individual performance which is derived from the employee’s
annual performance appraisal result. Therefore, employees who have completed minimum one
year of service in the Company, having met the minimum performance criteria, will be eligible
for bonus payout, provided that the business has achieved its revenue target for the concerned
year.

Performance-linked bonus will be paid out on salary multiples assigned according to

performance ratings:
Performance Rating and Corresponding Scales Increment Percentage
Outstanding (5)
Exceeds Expectations (4)
Fully Effective (3)
Needs Improvement (2)
Unsatisfactory (1)
Salary Multiples (as decided by the Business CEOs) will vary from business to business based
on business and Company performance.
Commission
Commission is an agreed-upon incentive based on business revenue generated. Once an
employee achieves the work objectives / goals set for the quarter, he/she will be explicitly
notified and the commission payouts will be given on a quarterly basis.

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 EMPLOYEE BENEFITS
The Company offers a range of benefits to its employees. These benefits cover items, which
are in addition to wages. Recognizing that employees have different needs at different times
throughout their careers, the Company has tried to be as flexible as possible in developing these
benefits. The program is administered through the Human Resources Department in keeping
with competitive industry practices, Company philosophy and employee needs.

REVISION AND CHANGES TO EMPLOYEE BENEFITS

The Company believes that its Employee Benefits Program represents a valuable part of overall
reward (compensation), and has designed these benefits to provide each employee accordingly.
While the Company hopes to continue these benefits, employees must understand that business
conditions and legislation can affect this area. The Company reserves the right to amend,
modify or terminate any/all of the Company's benefits programs described separately hereafter.

Leave Policy
The purpose of this policy document is to describe the Leave Policy of HRSG and to inform
employees about their entitlements of various types of leave. The types of leave contained in
HRSG leave policy are:

• Annual Leave
• Medical Leave
• Maternity Leave
• Paternity Leave
• Pilgrimage Leave
• Compassionate Leave

Public Holidays
Immediately following relevant government notification, the Human Resources Department
shall intimate all concerned through a circular, the copies of which shall be placed on Notice
Boards at all locations where Company office(s) exist. The Human Resources Department shall
take out a notice, before any of the notified holiday is due, as a reminder. However, Regional
Office will issue similar notice at each location. All outstation employees will be notified of
holiday(s) and/or rescheduling of holiday(s), if any.

Work from Home Policy

Depending on the nature of work, employees may be allowed to occasionally work from home
at the discretion of their line manager, in situations where they need to attend to immediate
personal needs but which does not impede their productivity.
Working mothers with new born babies may be entitled to shortened office hours, from 10:00
a.m. to 4:00 p.m., till the child is of six months of age. This flexibility will depend on whether
the nature of job of the mother would allow her to shortened hours, and will be at the discretion
of line manager and Business CEO. Parents (mother/father) may work from home if their child
is sick and there’s no one to look after the child.

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Child Care Allowance
To promote Gender Diversity and Women Empowerment in the workplace by making child
care facility affordable for the working mothers. This policy shall help them to continue with
their careers while fulfilling their maternal responsibilities.

Group Life Insurance

The Company has established a Group Life Insurance Plan to provide basic protection for all
employees during their service with the Company, in order to enable their family of the eligible
benefits in the event of employee's natural/accidental death. The entire cost of providing the
insurance cover shall be borne by the Company.

Death Benefit (Natural)

Grade Cover in case of natural disability/death (PKR)

D1-D3 5,000,000
M1-M2 3,000,000
M3-M4 2,000,000
M5-M6 1,500,000
M7-NM 1,000,000

Death Benefit (Accidental)

Grade Cover in case of natural disability/death (PKR)

D1-D3 Double the above limits
M1-M2 Double the above limits
M3-M4 Double the above limits
M5-M6 Double the above limits
M7-NM Double the above limits

Health Care Benefits

It is the objective of the Company to provide adequate medical coverage to all confirmed
regular employees and their immediate family members. The Company will provide
comprehensive protection for employee(s) and their family through a health care policy,
arranged through a reputed Insurance Company.

Hospital, surgical and critical illness expenses are covered. All covered expenses are, however,
subject to pre-determined maximum limits. Details of the same are as per table below.

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 Plan Grade Room Entitlement

A D1 - M2 Private
B M3 - M4 Semi Private
C M5-M7 Semi Private
D M8 – NM General

OPD Benefit
To provide employees with financial support to meet their Out Patient Department (OPD)
related medical expenses. Employees may submit scan copy of their Medical receipts to HR
through Decibel using the Medical via Co. Financing option under My Benefits in the

Employee Dashboard.

Medical receipts may include the following:

i. Doctor’s Consultation Fee
ii. Doctor’s receipt
iii. Receipt of Medicines purchased
HRBP will verify the availability of OPD limit of the employee and approve the reimbursement
application
Retirement Benefits
It is the intent of the Company to provide financial assistance to a retiring employee to enable
him to make a planned transition from active to inactive employment status for comfortable
post retirement life. In accordance with the above objective the Company has designed a
retirement benefits package, which consists of Provident Fund (PF) Scheme.

Employee Old Age Benefits – EOBI

The Ordinance is to provide Old Age Benefits to staff. As per the amended EOBI rules the
contribution in respect of every insured employee: A contribution equal to 5% of minimum
wages has to be paid by the Employers of all the Industrial and Commercial Organizations
where EOB act is applicable. Contribution equal to 1% of minimum wages by the employees
of said Organizations.

• Employer’s contribution 5% of the minimum wage.

• Employee’s contribution 1% of the minimum wage

The above contributions are mandatory and are payable for and by all. On payment of these
contributions an insured person is entitled to the following benefits:
Pension
An insured person is entitled to life pension with a minimum service contribution of five years.
(PENSION RATES VARIES) after attaining the retirement age as set by the Government
which is:

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 • 60 years for men
• 55 years for women

EOBI pension is calculated by applying the following formula:

• Average monthly wages x No. of years of Insurable Employment / 50
OLD AGE GRANT
An insured person not eligible for pension, retires from an insured employment, he/she shall
be entitled to Old Age Grant in lump sum equal to 50% of his monthly wages for every
completed year of insured employment. The eligible age for this benefit is:
• 55 years for men
• 50 years for women

SURVIVORS PENSION
In case of death of an insured person

a) While in insurable employment where he has completed at least 36 months, the surviving
spouse, if any, shall be entitled to a life pension equal to 60% of minimum pension.
b) While not in insurable employment but after he had completed 5yrs of insurable
employment, his surviving wife if any, shall be entitled to life pension equal to minimum
pension.
c) Who has become entitled to pension before his death, the surviving spouse shall be entitled
to 60% of the pension
d) In case of death of surviving spouse the minor children, if any, will be entitled to his/her
pension in the following equal share:
i. Male child till he attains 18 yrs. of age.
ii. Female child till she attains 18 yrs. of age or until married, whichever is earlier.
e) In case of death of surviving spouse within five years after the death of the insured person
and not survived by minor children, the survivors pension shall be paid to surviving parents for
a period of five years from the death of the insured person.

Car Allowance Policy

The Company will be providing a Car Allowance to its management employees as a perk for
business related travel, consistent with industry practice. HRSG’s Human Resources
department will be responsible for ensuring the correct application of the policy, maintaining
the necessary records to meet audit and regulatory requirements, provide information to
employees regarding the application of the policy, and facilitate the approval, award and
execution of the benefit.

Two categories of benefit have been created to account for the varied roles:
a) Category I is for employees who maintain a car to commute to and from the office and for
personal use.
b) Category II is for employees who, in addition to the below mentioned purposes, maintain a
car to frequently travel to client locations for business purposes.

The HR Business Partners and the employee’s Line Manager will determine, at the time of
benefit assignment, which category to classify the employee against, and will assign benefits
accordingly. If an employee’s role changes warranting a change in category, then the same will
be communicated to all relevant parties.

Cellular Phone Billing Limits

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The Company shall provide postpaid connection facility to the incumbents of the position (s)
whose jobs are critical to the Company’s operation and requires frequent communication. This
benefit applies to those authorized employees whose job requires extensive communication
with the clients, vendors & internal employees. Following are the limits given under each
designation and grade:

Grade Limits (In Rs.)

D2 At Actual
D3 At Actual
M1 At Actual
M-2 3,000**
M-3 2,500**
M-4 & M-5 2,000**

** Entitlement may vary depending upon the nature of assignment

Education Assistance Policy

HRSG encourages employees to continuously improve and develop their knowledge and skills
through education / advanced level certification. This assistance is extended to the employees
who due to the nature of their work are required to improve their skills and knowledge and in
cases where this development will be to the best advantage and benefit to the employee as well
as the Company. The Company reserves the right to decline the assistance to an employee.

Recommendation:
The company is giving compensation and benefits according to job targets, it is not including
competencies in their performance management which is a big draw back for the company as
employees will not effort perform above 100 percent for achieving competencies, which will
be not beneficial for both employees and company. It is necessary for an employee to generate
competencies for the next level to survive in the next position and employee will only make
effort to generate competencies when he will get reward for that in the form of compensation.

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