Remuneration Model for Manager
Base salary is decided based on job responsibilities, scope of work, and duties. Managers in the company are paid an average base salary of AU$82,000 annually.
The bonuses are designed considering both non-financial and financial factors, such as organisational development, strategic initiatives, financial performance, market development, etc. For managerial position, the bonuses are provided based on target basis, individual performance rating, subordinate rating, and job function handling. Managers also get non-cash bonus, and milestone bonuses on achieving a set target.
Managers are entitled to receive organisation’s share under Share Award Scheme of the company for giving exceptional performances over the years.
Remuneration Model for Entry Level Employee
Base salary for the entry level employee cannot be more than AU$64000 per annum.
Bonuses are provided only for achieving the target bracket or exceeding the expectations of the manager. This is only provided at the end of the quarter. Bonuses cannot be more than 8% of the base salary in any case.
The Share Reward Scheme is not applicable for entry level positions. A minimum of five years of working with the company is required to become eligible for this scheme.
Provident funds under Occupational Retirement Schemes Ordinance (ORSO). For 5% contribution from employee, organisation pays 12.5% of the base salary.
Dental insurance, free monthly check up, 20% off on all products for employees, business travel insurance, House Rent Allowance for non-native employee, medical insurance, life and personal accident insurance, and employee compensation.
For Full-time (Entry Level) Employee
Sec 80C Investment
Leave Travel Allowance
For Part-time Employees
1500 (In AUD)
The company follows the legislations, such as Employment and Labour Act, 2019 and
Remuneration and Allowances Act 1990, and Corporation Act
In this part, an incentive plans for both permanent and part time employee are discussed.
Incentive Plan for Full-Time Employee
Priceline Pharmacy is an Australian beauty and health care retailer founded in the year 1982. The company works under the parent company of Australian Pharmaceutical Industries. The company is announcing a new remuneration policy for the employees. The remuneration policy will described the outline and objectives of the policy. The different types of remuneration will also be enumerated in the policy.
The company has acknowledged the need to revise the remuneration policy so as to attract and retain the employees in the organization. Priceline pharmacy is announcing a new remuneration policy that is competitive and will comply with all the standards and regulations of the government (Vogler, et. al., 2015). The company has taken this decision to comply the remuneration policy with the objectives and aims of the company. Financial and non-financial criteria are included in the new remuneration policy.
Forms of remuneration
The company has included two types of remuneration in this remuneration policy. Given below are the two forms of remuneration:
There are some set conditions for both the types of remuneration. The conditions for fixed remuneration are that the employees have to work for exact 8 hours in the company and the foxed targets for the months have to be achieved by them (Schulman &Dabora, 2018).
The milestones for the variables remuneration are different as the employees will get extra and variable salaries when they exceed the monthly targets and the work for extra hours in the company. The proportion of extra salaries will depend upon the working hours.
Priceline Pharmacy has taken a decision to review the remuneration rates as per the relevant market scenario and the salaries paid in the market (Dooley, 2016). For the successful implementation of the remuneration policy, the company is developing a remuneration strategy that will help the employees to know about the new rules and regulations related with the policy.
Aims and Objectives
The main aim of the remuneration strategy is to make the employees aware about all the new compliances and regulations associated with the policy (Vogler, et. al., 2015). The new remuneration strategy has an objective to motivate the employees and retain them in the business for a longer duration.
Current remuneration trends
The current market trends in the industry says that salaries of the employees are higher at Amcal and the average pay is AUD 38. The company Chemist warehouse pays the lowest salaries as AUD 30. Priceline Pharmacy has moderate range of remuneration and the company will review its remuneration structure as it will now pay higher wages.
Legislative parameters and context
The salaries in the country are regulated by The Australian and New Zealand Standard Classification of Occupations Codes and all the salary structures are complied with the codes.
The motive of the business is to have highly skilled and competent employees in the company so the new remuneration strategy is set to attract more employees and also to retain the older employees.
Internal Consultation, stakeholders and approval process
The remuneration plan is made by the consultation of all the important stakeholders of the business. The key stakeholders who are consulted internally are existing employees, Investors and Higher management
The given process is followed for the approval of the policy
The company has developed a new remuneration strategy to provide the best competitive salaries to the employees and motivate them. This will also help to retain them in the company.
After the thorough survey of the market, it has been analyzed that Amcal is the highest paying company and the salary rates of Priceline Pharmacy are moderate.
Performance expectation and link between incentives and performance
The employees will be provided incentives when they work exceeding the monthly targets (Duckett&Romanes, 2016). The employees have to sell as much as medicines they can and the proportion of their extra salary will be added in their fixed salary.
The salary structure will be improved when the market trends will change further and the employees will always get a better remuneration.
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