Compensation

TEAM 10:

Panu Kurkela

Jouko Kyrola

Simo Nieminen

Martijn Verbree

Compensation Objectives

•Match Organizational Goals

•Employee Motivation

•Retain most talented people

•Reward Past Performance

•Improve Productivity

•Maintain Competitiveness

Compensation Policies

•Competitive Base Salary

•Annual Merit Pay based on Excellent Performance

•Incentives

•Indirect Compensation

Government Regulations

•Mandatory

- Minimum Wage

- Occupational Health Service

- Retirement Benefits

- Maternity Benefits

- Insurance (accidents, Unemployment)

Opportunities

•Changed Working Time Regulations

•Local Employee Agreements Allowed

•Voluntary Retirement Insurance

•Investment Funding Possibilities

•Local Authorities Agreements

Factors Affecting Working Time

•Eight Hours per Day

•37.5 Hours per Week

•Two First Overtime Hours +50%

•Following Overtime hours +100%

•Total Amount of Overtime Hours per year is limited

•Possibility for Local Agreements

Base SalariesIn FIM, $ 1 = FIM 5.5

CEO 700.000

Vice Presidents 400.000

Area Managers 300.000

Facility Managers 220.000

Assistant Facility Manager 150.000

Salary Range: (+/- 25%)

Compensation ConstraintsCEO

VP’s

AM’s

FM’s

AFM’s

Base Merit Bonuses Stock Indirect

Salary Options Compensation

Incentives

•Merits

-Allocation by Superior based on Performance Appraisal

•Bonuses

-Max 20% of Base Salary

-Goals and Bonus Set by Superior

-Bonuses are Based on Yearly Budget

•Stock Options

- Goals Set by Chicago HQ

- Evaluation by Chicago HQ, Based on Appraisal

Management Goals

•Customer Satisfaction

•Productivity

•Growth

•Market Share

•Sales Volume

•Profit*

Indirect Compensation

•Retirement Insurance

•Flexible Working Hours

•Company Car, Petrol, phone

•Self Development Program

•Relocation Assistance

Thank you...