”BP-CENTRO” – FINLAND CASE

”BP-CENTRO” – FINLAND CASE
Human Resource Management Plan June, 2003

AGENDA Introduction BP-Centro Background HRM Plan Areas (1 - 5)
Break (15 Min.) HRM Plan Areas (6 - 10) Conclusion

COMPANY OVERVIEW Experienced great growth in the US and globally
Delivers services and products such as: Gasoline, oil and services Food products and services Grocery products General merchandise and service establishments Entertainment Does not own companies, but leases facilities Builds relationship on a long-term basis Petroleum and auto-related products must be purchased from BP

HRM PLAN AREAS 1. Objectives and Policies 2. Organization Structure
3. Requirements Planning 4. Job Description - Management 5. Job Description – Operations 6. Recruitment Methods 7. Selection Report 8. Training 9. Performance Appraisal 10. Compensation and Benefits

AGENDA Mission Statement Values and Ethics Economic Goals Governments
Long Term Organizational Objectives Short Term Organizational Goals Attitude Toward Change Policies

MISSION STATEMENT We are commited to our customers in terms of providing them with high quality products and services 24 hours a day, 7 days a week, 365 days a year. We are involved in the real estate business and it is our goal to develop a concept of shopping complex through Europe.

VALUES AND ETHICS Respect for Human Rights,
Protection of the natural environment, Fairness and honesty in human relationships, High quality standards, Customer and employee satisfaction, Develop a strong brand image.

MAIN ECONOMIC GOALS Serve the emerging markets Create brand awareness
Penetrate into the European market Create brand awareness Gain market share

GOVERNMENTS Ensure good relationship -local -national Fulfill
-work legislation -legal requirement Political environment -fair -direct

LONG TERM ORGANIZATIONAL OBJECTIVES
Promote BP Centro corporate culture In 5 years time -over 150 facility managers. BP – regional center of excellence Training centers in Finland Future managers

SHORT TERM ORGANIZATIONAL GOALS (1)
Develop concept of world wide Act local Official language - English Fight discrimination Build a strong corporate culture -Build relationships -Efficient communication -Collaboration with franchisees

SHORT TERM ORGANIZATIONAL GOALS (2)
Encourage communication among district managers team Customer service 24/7 365 days

ATTITUDE TOWARD CHANGE
To set up the company’s reputation, need for some stability and landmarks, Be on the edge of change in terms of quality management, Adopt a proactive attitude toward change on a long term view.

POLICIES (1): ACCOUNTABILITY TO STAKEHOLDERS
Relationship management coordinating with stakeholders to avoid prejudicial activities to environment and the community Impact assessment to evaluate the consequences of business activities on people (proactive approach)

POLICIES (2): RELATIONSHIPS WITH EMPLOYEES
Employee empowerment Reward excellence through bonuses or share options Always get the best person for the job, from within if possible Make sure individual goals match corporate goals Provide possibilities to balance work life and family life

POLICIES (3): INTERNAL STRUCTURE
Favor constant tapping of upcoming technology to: minimize labor cost develop a HRIS to enhance communication and improve efficiency of information sharing Build a team-oriented organization and participative environment Outsourcing when feasible

POLICIES (4): MONITORING, CONTROLLING
Measure results regularly against set goals and re-evaluate goals if necessary Regular benchmarking for continuous improvement Encourage structured feedbacks Organize internal auditing

BRIEF SUMMARY Emphasize on corporate culture
Build excellence using edge-cutting technology and state-of-the-art HRM methods Adapt to the needs and environment

HRM PLAN AREAS 2. Organization Structure 1. Objectives and Policies
3. Requirements Planning 4. Job Description - Management 5. Job Description – Operations 6. Recruitment Methods 7. Selection Report 8. Training 9. Performance Appraisal 10. Compensation and Benefits

AGENDA Organizational Chart Organizational Reporting Relationships
Headquarters in Finland Key Functions of Each Department Country Managers Regional Managers Facility Managers Assistant Facility Managers Brief Summary

ORGANIZATIONAL CHART

ORGANIZATIONAL REPORTING RELATIONSHIPS
Assistant Facility Manager works in co-operation with Facility Manager Every Facility Manager reports to their own Regional Manager Regional Manager has a reporting responsibility to their Country Manager Country Managers work in close contact with the management team CEO at Finnish headquarters reports directly to the headquarters in UK

HEADQUARTERS IN FINLAND
Why Finland? CEO’ s responsibilities in Finland Headquarter’s tasks: - overall responsibility - general advises and rules - supervises the country managers

FINNISH HEADQUARTERS MARKETING - general marketing strategy
- develops marketing budget with Finance department - find the location in co-operation with CM and RM

FINNISH HEADQUARTERS HRM
- selects experienced, flexible managers with the hiring managers - training and development - developing Human Capital

FINNISH HEADQUARTERS FINANCE - financial & investment planning
- accounting information systems - taxation & foreign exchange - guide & supervise financial actions - reports to UK headquarters monthly

FINNISH HEADQUARTERS OPERATIONS
- helps managers to make outsourcing contracts - warehousing, transportation - new facility development - acquisition of new sites

COUNTRY MANAGER Located in every country
Responsible for the operations in the specific country Makes suggestions and advises Specifies the marketing strategy

REGIONAL MANAGER Responsible for their own regions & the coordination of their activities Interacts with each other & as a team - uniformity of centers Supervisors 3-5 centers New location proposals Co-operation with country managers - instructions & feedback

FACILITY MANAGER Responsibilities: -takes care of operations
-maintainance of operation -supervision of franchisers -ensures safety

ASSISTANT FACILITY MANAGER
Helps Facility Manager Is responsible when FM is not present has same responsibilities as FM

BRIEF SUMMARY Clear business structure
Efficient supervision of managers Collaboration with other managers

HRM PLAN AREAS 3. Requirements Planning 1. Objectives and Policies
2. Organization Structure 3. Requirements Planning 4. Job Description - Management 5. Job Description – Operations 6. Recruitment Methods 7. Selection Report 8. Training 9. Performance Appraisal 10. Compensation and Benefits

AGENDA Entry level Jobs Promotion Job Analysis Planning
Short and Long-term Recruiting Plan Brief Summary

ENTRY LEVEL JOBS BP Centro hires principally educated
and/or experienced professionals Entry level employees could be: Assistant facility managers No other non-professionals will be on the payroll except for interns

PROMOTION Employees are mainly promoted within the company
Country manager => Top manager Regional manager => Country manager Facility manager => Regional manager Assistant Facility Manager => Facility manager Exchange training programs for managers Eventually send abroad

JOB ANALYSIS PLANNING To improve the organizational performance and productivity, it will be a constant study of duties, tasks and activities of different jobs. Job description approaches: Functional job analysis Critical incident method Position analysis questionnaire system

SHORT AND LONG TERM RECRUITING PLAN
YEAR FINLAND, TESTING MARKET YEARS BALTICS AND RUSSIA YEARS EAST EUROPE

YEAR 1 - FINLAND Stablish the headquarter in Finland with coolaboration of UK staff Build up brand recognition Create a strong multicultural team Start with the recruiting and training process for the managers Open facilities onlyin mayor cities (Helsinki - Tampere - Turku) Demand CEO and Vice-presidents 1 Country manager 2 Regional managers 6 Facility managers 30 Assistant facility managers Supply Experience workers from the mother company Recruiting outside the organization

YEARS 2 - 4 - BALTICS & RUSSIA
Continue opening facilities in Finland Implement Job Analysis Give to experienced employees the first chance for new posicions. I.E. Give the chance an assistant from Helsinki to became a facility manager in Turku. Send pionering Finnish teams to new markets to build-up In the beggining in new markets, focus in big centres: Moscow, St. Petersburg, Tallin, Riga, Vilnius. Later do the same than Finland when oppening new complexs

YEARS 2 - 4 - BALTICS & RUSSIA
Demand Employees for new complex in Finland Employees for new complex in baltics and Russia Supply Mainly employees from old complex Entrpreneurs from Finland mixed with natives

YEARS EAST EUROPE Start exchange training programs between managers Follow the same idea than in Baltic countries to expand around East Europe. First settle in the big centres, with entrepreneurs from the baltic region plus natives. Later move to smaller cities.

SHORT AND LONG TERM RECRUITING PLAN
CEO VICE-PRESIDENTS 4 (not consider HQ personnel) Year Country Man. Reg. Man. Fac. Man. Fac. Ass. FINLAND: BALTIC: – RUSSIA: – (2) E. EUROPE:

BRIEF SUMMARY The basis for a successful job requirement plan are:
Profound job analysis Intercultural aspect in recruitment Implement a good marketing plan, specified for each region Approximate number of employees after 5+ years:: Country Managers Regional Managers Facility Managers Facility Assistants

HRM PLAN AREAS 4. Job Description - Management
1. Objectives and Policies 2. Organization Structure 3. Requirements Planning 4. Job Description - Management 5. Job Description – Operations 6. Recruitment Methods 7. Selection Report 8. Training 9. Performance Appraisal 10. Compensation and Benefits

TOP MANAGEMENT LEVEL CEO VP Marketing VP Operations VP Finance
VP Human Resource VP Marketing VP Operations

COMMON REQUIREMENTS Master’s degree
Several years related work experience Language skills: Fluent English required, Finnish, Russian and Baltic languages preferable Management and Leadership Skills Ability to make decisions and solve problems effectively Interpersonal Skills Ability to travel/work abroad

CHIEF EXECUTIVE OFFICER
Requirements & Responsibilities >10 years related work experience Hold final decision power Develop vision and strategy Company Representative Reports to BP corp.(UK)

VP FINANCE Requirements & Responsibilities
>7 years related work experience Master’s degree in finance Ensure balance of company’s financial structure Provide financial reports to CEO and BPO Corp (UK).

VP Human Resource Requirements & Responsibilities
>5 years related work experience Master’s degree in HRM Excellent interpersonal skills Develop staffing, recruiting, training and compensation Motivate and reward employees

VP OPERATIONS Requirements & Responsibilities
>7 years related work experience Relevant master’s degree Responsible of developing business concept Significant knowledge of customs, transportation and distribution channels Forecast demand of BP’s products

VP MARKETING Requirements & Responsibilities
>5 years related work experience Master’s degree in marketing Create annual marketing plan and budget Forecast future market trends Ability to be creative

HRM PLAN AREAS 5. Job Description – Operations

AGENDA Organizational Chart Job Responsibilities Job Requirements
Job Design Brief Summary

ORGANIZTIONAL CHART

COUNTRY MANAGER Reports directly to HQ & functional depts.
Responsible for the operations in the specific country Support, monitor & supervise lower level Accountable for the country budget Maintains contact with government Sets quality standards Responsible for national franchises

REGIONAL MANAGER Responsible for their own regions & the coordination of their activities. Communicates directly with Country manager Perform duties assigned Monthly reports or when necessary Acts as a team with other Regional Mgr’s Uniformity of centers Implementation of marketing strategy

REGIONAL MANAGER (CONT’)
Support, monitor & supervise the Facility mgr’s within their regions Instructs & get feedback Responsible for new location proposals Responsible for maintenance of franchises and new contracts Accountable for regional budget

FACILITY MANAGER Reports to Regional Manager
Responsible for own facility & monitoring the sites Implements strategy’s created by upper mgmt E.g. specific marketing & promotions Supervisors the quality of the work & services

FACILITY MANAGER (CONT’)
Ensure smooth flow of facility operations and local outsourcing Supervisors and evaluates local outsourcing Responsible for new location proposals Responsible for branding & company image Supervises the asst. facility mgr

ASSISTANT FACILITY MANAGER
Reports daily to Facility Mgr & perform all duties assigned Available on site 24h Handles emergencies Assist FM Train, lead & motivate employees Adapt to any changes Ensure customer satisfaction Ensure all work tasks are performed efficiently Evaluating local outsourcing needs

JOB REQUIREMENTS Country Manager
Masters Degree – Business/Management/Marketing/Equivalent Working experience in management, 5 yrs Team player mentality and leadership capabilities Aggressive and able to work under pressure Dynamic & flexible - working hours Willing to travel or move to other country Excellent – English and Local Language

JOB REQUIREMENTS Regional Manager
Bachelor Degree – Management / equivalent (Preferably Master’s Degree) Management experience, 3 yrs Motivation Willing to travel or move to other country Posses communication & presentation skills Fluent in English and in excellent Local Language

JOB REQUIREMENTS Facility Manager Bachelor Degree/ equivalent
Knowledge of the service industry Some experience in management Ability to work individually Dynamic & flexible Fluent English and excellent Local Language

JOB REQUIREMENTS Assistant Facility Manager
Bachelor’s Degree/equivalent Ability to work individually Knowledge of Service industry Fluent English and Excellent Native Language No previous management skills required

JOB DESIGN FOR MIDDLE MANAGEMENT
Job Enlargement Job Enrichment Job Rotation Flex-time Alternate Work Schedule

JOB ENLARGEMENT Horizontal loading Creating more jobs

JOB ENRICHMENT Level of job Authority and control
Individual performance reports Training programs Individual specific tasks

JOB DESIGN (CONT’) Job rotation
– for facility managers & assistant f.m. Flex-time - problematic Alternate work schedule - altering limitated

BRIEF SUMMARY 4 levels of Middle managers, cooperation
Middle managers responsibilities Job Design is to improve motivation, job satisfaction and work ethic

See you again after a 15 Min. Break!
Tank you for attention so far.

HRM PLAN AREAS 6. Recruitment Methods 1. Objectives and Policies

AGENDA Labour Market Internal and External Recruitment
Organizational Chart Recruitment by position Brief Summary

LABOUR MARKET Relevant Labour Markets Finland Russia and the Baltics

RECRUITMENT Internal External Locating from within the company
Locating from outside the company

RECRIUTMENT BY POSITION
CEO Functional Manager Regional Manager Facility Manager Assistence Facility Manager

ORGANIZATIONAL CHART ORGANIZATIONAL CHART

CEO Internal Resource selected by the executive board Consideration
familiar with the company’s culture comprehensive knowledge about this position and the company’s core competencies international experience

FUNCTIONAL MANAGER Internal Resources External Resources
Job posting and bidding HRIS (Human Resource Information System) External Resources Job Advertisments in the Local Newspapers Online Job Advertisment

REGIONAL MANAGER Internal Resources External Resources
Job posting and bidding HRIS External Resources Job Ads in the local newspapers Online Job Ads Hire an professional organization

FACILITY MANAGER External Resources Job Ads in the local newspapers
Online Job Ads Educational Institutions

ASSISTANT FACILTIY MANAGER
External Resource Job Ads in the local newspapers Online Job Ads Educational Institutions

FUTURE DEVELOPMENT RR system GEMS used both internal and external
approvals to candidate searches & tracking

BRIEF SUMMARY Recruitment within the Organization
- Border slection - Job position and bidig Recruitment outside the Organization - advertisement - internet - professional Organizations - Educational Institutions Develop GEMS, RR system in the future

HRM PLAN AREAS 7. Selection Report 1. Objectives and Policies

SELECTION PROCESS Application Review Initial Interview
Employment Tests Background Investigation Preliminary Selection Supervisory Interview Medical Examination Hiring Decision

APPLICATION REVIEW Review of applications and resumes
Put candidates in order of best qualified Select the most appropriate applicants

INITIAL INTERVIEW Highly Structured Interview
Questions Based on Job Requirements Distinct Types of Questions Sample Good Responses Used as benchmark Consistency Applied Documentation “Fostered by EEO Requirements”

EMPLOYMENT TESTS Perform psychological and honesty tests
e.g MBTI Employment classification aptitude test achievement test Teamwork ability tests E.g MBTI To help identify possible relationships with colleagues

BACKGROUND INVESTIGATION
Check references and work history Good citizen (criminal record) Reliability of applicant Information will be obtained from: former employers school, college, university officials credit bureaus individuals named as references

PRELIMINARY SELECTION
Ranking of applicants based on previous processes Outsourced to recruitment firms to keep costs down Select the best candidates for “second” round Moving into supervisory interview at HQ

SUPERVISORY INTERVIEW
Done by HQ In depth panel interview HR manager, local HR manager, supervisor, hiring manager Multiple opinions Creates reliability

MEDICAL EXAMINATION Given to ensure that the health of an applicant is adequate to meet the job requirement Outsource to selected medical institutions Protection against possible later law suits Can be costly

HIRING DECISION Goal of the whole application process
most important step Identify “will do” and can do” factor Approach taken clinical approach Final decision based on all steps of the selection process Done by HQ

SELECTION PROCESS TASKS: FUNCTIONAL, COUNTRY and REGIONAL MANAGERS
Positions Application Screening Outsourced Outsourced HQ Initial Interview Employment Tests Background Investigation Preliminary Selection Supervisory Interview Medical Examination Hiring Decision

Position Selection done by
SELECTION SCHEDULE Position Selection done by CEO BPO Headquarters VP’s CEO and UK HQ CM HR department of Finnish HQ RM HR Department of Finnish HQ & hiring manager FM Regional HR Department & hiring manager AFM Regional HR Department & hiring manager

COST Outsourcing selection process reduces personnel needs and expenses in HR department Economies of scales Lack of competence By doing the selections right on the first time, time escalation costs are avoided Opportunity cost A successful potential who may have been overlooked

VALIDITY AND RELIABILITY
The combination of the different steps in the selection process will assure that each applicant’s characteristics are correctly evaluated Reliability More than one interviewer at supervisory interview Standardization e.g. BP employment test

BRIEF SUMMARY Potential employees selected on the basis of the selection process More emphasis given on qualifications and experience

HRM PLAN AREAS 8. Training 1. Objectives and Policies

AGENDA System Model of Training Training Objectives
Who Needs Training? Orientation Recommended Orientation Package Training for Middle Managers Training for Top Managers Evaluating the Training Results

SYSTEM MODEL OF TRAINING
Phase 1: Needs Assessment Phase 2: Design Phase 3: Implementation Phase 4: Evaluation

TRAINING OBJECTIVES Build, develop and maintain a strong corporate culture Develop loyalty to the organization through employees’ satisfaction Improve work performance Career advancement and development

WHO NEEDS TRAINING? Assessment is made by doing different kinds of tests Person analysis Competitive assessment Test results will show who needs training mostly

ORIENTATION Definition: Formal process of familiarizing new employees with the organization, their jobs, and their work units.

RECOMMENDED ORIENTATION PACKAGE
Company history Copy of specific job goals and descriptions Telephone numbers and locations of key personnel List of on-the-job training opportunities Safety and emergency procedures Copy of policy handbook

RECOMMENDED ORIENTATION PACKAGE
Current organization chart Map of facility List of holidays List of employee benefits Copies of insurance plans

TRAINING FOR MIDDLE MANAGERS
On-the-job training Cooperative training Intensive language courses Intercultural courses

TRAINING FOR TOP MANAGERS
On-the-job experiences Seminars and conferences Case studies Intensive language courses Development of computer skills

EVALUATING THE TRAINING RESULTS
Reactions Learning Behavioral Transfer Results Impact

HRM PLAN AREAS 9. Performance Appraisal 1. Objectives and Policies

AGENDA Performance Appraisal
Why Bp-centro should use performance appraisal? Purposes of performance appraisal How to develop an effective program? Who is involved? The evaluated employees in BP-Centro Performance appraisal in Finland How to convince the employees that is a necessary process Appraisal methods Overview of the methods BP-Centro appraisal methods Brief Summary

PERFORMANCE APPRAISAL
Why Bp-Centro should use performance appraisal? Purposes of performance appraisal

PURPOSES OF PERFORMANCE APPRAISAL
Administrative Purposes: they provide input that can be used for the entire range of HRM activities (ex. Compensation decisions). Other purposes: Promotion Transfer Layoff decisions Possible legal action

PURPOSES OF PERFORMANCE APPRAISAL
Developmental Purposes: they provide the feedback essential for discussing strengths and weaknesses as well as improving performance. Other purposes: issues for discussion eliminating problems setting new goals training growth plans

Organizational improvement
THE BOTTOM LINE Organizational improvement ‘ Bp-Centro ’

HOW TO DEVELOP AN EFFECTIVE PROGRAM?
Who is involved? Who is evaluated? What is the frequency? How to convince employees that this is a necessary process?

WHO IS INVOLVED? The HR department has to take the primary responsibility for coordinating the activities with the managers and the decided program Middle-Management must initiate and respond After thorough start-up > Middle Managers will be responsible for their own appraisal programs.

THE EVALUATUED ARE: CEO BP-CENTRO: ==> Annually, MBO
Top Management: ==> Annually, MBO Country managers: ==> Annually, MBO, BOSS 3600 Regional managers:==> Annually, MBO, BOSS 3600 Facility managers: ==> Quarterly, MBO, BOSS 3600 Assistant Fac.Managers: ==> Quarterly, BOSS 3600

PERFORMANCE APPRAISAL FINLAND
Appraisal system is somewhat familiar to every Finnish company and the managers are used to the system. Important factor in career development. In Eastern European Countries and Russia this system is not that familiar as it is in Finland > Introduction to the program!

HOW TO CONVINCE TO EMPLOYEES THAT IT IS A NECESSARY PROCESS?
In Finland it should not be a problem realize its benefits part of everyday work life In Eastern Europe and Russia, before implementing the appraisal system, there should be an introduction. (Ex. Seminars, take employees to Finland and introduce how the system works, etc)

PERFORMANCE APPRAISAL METHODS
Trait Methods Graphic Rating Method Mixed Standard Method Forced-Choice Method Essay Method Results Methods Productivity measures Management by objectives(MBO)>BP-Centro

PERFORMANCE APPRAISAL METHODS CONT’D
Behavioral Methods Critical Incident Method Behavioral Checklist Method Behaviorally Anchored Rating Scale (BARS) Behavior Observation Scales Systems (BOSS)>BP-Centro

APPRAISAL METHODS IMPLEMENTED IN BP-CENTRO
Management by objectives (MBO) BOSS 3600 Why these methods are chosen?

MANAGEMENT BY OBJECTIVES
measures performance on the basis of employee achievement of goals set by mutual agreement of employee and manager > Why MBO is chosen? The system acts as a goal setting process whereby objectives are established for the organization (BP-CENTRO), and departments, and individual managers and employees (country, regional and facility managers) Found effective and motivational method Widely used in top Finnish firms

BP-CENTRO MBO PROGRAM CEO - Organization’s common goals.
Finance, Marketing, HR, Logistics managers Departments’ specific goals Country, regional, facility and assistant facility manager lists goals and measures for subordinate Country, regional, facility and assistant facility manager proposes goals and measures for his or her job Joint agreement on goals New input provided Review of organization performance Review period providing feedback on results measures against establish goals Inappropriate goals eliminated Final review of results measures against establish goals

3600 Is an all-rounder form of evaluating employees’ performance from all angles that includes supervisors, peers, subordinates and customer Quality of information is better than other systems It may lessen bias/prejudice because feedback comes from many people

WHAT’S THE BOSS? A behavioral approach to performance appraisal that measures the frequency of observed behavior and effective goal meeting. Similar to its predecessor BOS> Behavior Observation Scales Enables performance observation and meeting objectives assigned to the top also. New approach 360-degree appraising Specific rating system with room for development. Involves possibilities for promoting and training Motivates employees

SAMPLE OF BOSS

ADVANTAGES OF BOSS Distinguishes good from poor performers
Provides feedback Identify training needs Easy to perform Completes MBO Applicable to different countries

Brief Summary The success of an organization depends largely on the performance of its human resources Performance appraisal programs give the basis to compensation Organizational Development and performance enhancement.

Organizational improvement
THE BOTTOM LINE Organizational improvement ‘ Bp-Centro ’

HRM PLAN AREAS 10. Compensation and Benefits

AGENDA Compensation Objectives & Policies Factors Affecting Wage Mix
Salary & Incentives Structures Benefits Brief Summary

COMPENSATION OBJECTIVES
Pay market-competitive compensation Achieve internal & external pay equity Ensure fair employee treatment Promote open & understandable pay practices Comply with all governmental compensation regulations Promote pay-for performance standards

COMPENSATION OBJECTIVES
Mesh employees’ future performance with organizational goals Control the compensation budget Attract new employees Reduce unnecessary turnover

COMPENSATION POLICIES
General guidelines for compensation that are equal in every region Pay-for performance standard No pay secrecy – open policy Different compensation options/plan for each level of managerial employee Competitive base salary (merit pay program) Short-term incentives - bonuses Long-term incentives – stock plans Indirect compensation- general benefits Nonfinancial compensation –perks eg: employee recognition program, special relocation benefits, etc

FACTORS AFFECTING THE WAGE MIX
Internal factors BPO’s compensation policy Worth of a job – job evaluation Employee’s relative worth in meeting job requirements BPO’s ability to pay

FACTORS AFFECTING THE WAGE MIX
External Factors Labor market condition Area wage rates Collective bargaining cost of living legal requirements

COMPENSATION STRUCTURE
Determining Salary Rate Use point system to determine a job’s relative value by calculating the total points assigned to it. Points given to compensable factors like skill, effort, responsibility & working conditions. Wage & Salary Survey Survey of wages paid by employers in an organization’s relevant market. Job evaluation & wage-survey data used jointly to to link the likelihood of both internal and external equity.

POINT SYSTEM

PAY GRADES Grade 1: Assistant Facility Managers
Grade 2: Facility Managers Grade 3: Regional Managers Grade 4: Country and Functional Managers Grade 5: CEO

SALARY RANGES monthly, Euros
Finland Russia Baltics Grade 1 2,500 800 1,200 2 4,500 1,100 1,800 3 6,500 2,100 2,800 4 9,500 3,400 4,900 5 12,000

Monthly Salaries in Finland

RECOMMENDED COMPENSATION MODEL

BENEFITS Core benefits are provided in all countries.
Flexible benefits plans (cafeteria plans) Benefit plans that enable individual employees to choose the benefits that are best suited to their paricular needs. Additional benefits vary among the countries.

CORE BENEFITS Health care Day care Cellular phone Food services
Housing and moving expenses

ADDITIOANAL BENEFITS IN FINLAND
Company car Free time activities Discounts on goods and services purchased at the company’s store

Additional Benefits in Russia and the Baltics
Education for children Additional health care services Free time activities Discounts on goods and services purchased at the company’s store

BRIEF SUMMARY A strategic compensation plan for employees that enhance motivation & growth, as well as aligning their efforts with BPO’s objectives, philosophies and culture. BPO must balance each of these concerns while still remaining competitive. Consider the internal & external forces that influence directly, or indirectly, the rate at which employees are paid. Create a value-added compensation program in which the components of the compensation package ( benefits, base pay, incentives, etc.), both separately and in combination, create value for BPO and its employees.

BP - CENTRO CONCLUSION

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”BP-CENTRO” – FINLAND CASE

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