https://www.mindtools.com/pages/article/newTMC_05.htm 1995, and listed on the Bahrain Bourse

https://www.mindtools.com/pages/article/newTMC_05.htm (9/12/2017)http://www.compensationcafe.com/2012/03/reward-planning-and-swot-analysis.html (10/12/2017)https://www.helioshr.com/2013/11/what-makes-up-a-great-total-rewards-package/ (25/12/2017)https://www.cipd.co.uk/knowledge/strategy/reward/strategic-total-factsheet# (25/12/2017)Introduction to SICO Investment Bank B.S.C.SICO Investment Bank was established in 1995, and listed on the Bahrain Bourse in 2003 as a closed company; SICO operates under a conventional wholesale banking license from the Central Bank of Bahrain. The Bank has two wholly-owned operating subsidiaries: SICO Fund Services Company (SFS) – a specialized regional custody house; and SICO UAE – an Abu Dhabi-based brokerage firm licensed by the Emirates Securities & Commodities Agency.The Bank’s strong shareholder base includes some investment and commercial banks in Bahrain together with the Bank’s employee through the SICO Employee Stock Ownership Plan.The bank’s mission is to be one of the leading GCC securities firms offering a range of investment banking services, including brokerage, equities, fixed asset management and corporate finance. SICO offers innovative products and services that meet the changing investment needs of customers while adhering to the highest ethical and professional standards of conduct. Thus, the Bank is committed to maximizing shareholder value.Internal and External Factors:The reward system is designed to stimulate employee performance that positively impacts the Bank’s performance and success; there are several internal and external factors that affect the reward system in the Bank either positively or negatively, so we will use SWOT analysis tool to identify these factors.Strengths:In 2004, the Employee Stock Ownership Plan (ESOP) was implemented in order to motivate and reward employees by granting them a share of the benefits in SICO. The employee is not obligated to pay any amount in respect of any grant granted to him/her under this scheme (ESOP), where the Bank pay the shares value with a value equivalent to 5% of each employee’s 12-month salary. Selected employee will be entitled to receive an award of Shares with a value equivalent to 20% of such employee’s cash bonus. In addition, employees with high performance and on the recommendation of the CEO will be entitled to receive a discretionary award over a number of free Shares.ESOP is a retirement program for the employee where he/she can sell back the shares to the Bank when the employee leaves or retires.SICO recognizes that the expertise of its employees is essential to its strategy and that employees can develop their abilities to meet their own aspirations in line with the Bank’s objectives and the succession plan. It is decided to encourage and support employees financially and morally to obtain higher academic and professional qualification certificates by paying tuition fees, as well as the granting of paid leave not deducted from the annual leave to study before the exam. The bank is in an expansion phase and needs qualified and experienced employees. This has driven the bank to encourage employees to obtain professional certificates by encouraging them to obtain these certificates as a requirement from the Central Bank of Bahrain, as any promotion to senior positions must be approved by the Central Bank of BahrainThe Bank relies on the experience and value of employees and does not depend on minimum national wages. The bank pays employees 20% to 30% higher and increases the employee’s salary annually by 5% – 15%.Good working relationships between management and employees through open door policy to receive complaints and suggestions from employees, as well as the establishment of many events and activities inside and outside the Bank to build good relations between employees and managers outside work.Weakness:Discriminate between expatriate and local employees in allowances compared to other organizations in the same field, where these organizations equal the expatriates and the local by giving the locals equal allowances in value with expatriate allowances.Although the bank pays strong salaries to employees, we find that there is a difference in the gross income between the local employee and expatriate and this is due to the allowances granted by the expatriate employee compared to the local employee who does not receive any kind of allowances such as housing and annual airfare. OpportunitiesThe bank is in great expansion, success, and reputation, giving it the opportunity to attract the workforce with practical experience. The new mechanism of incentives, allowances, and entitlements help attract the workforce needed by the bank while retaining competent employees.ThreatsWith the opening of the investment market, the government allowed foreign investors to invest in the country, so there are many banks and investment companies and this leads to an increase in supply and demand for employees in the investment sector, which increases their wages and threatens the bank to loss of qualified employees and producersExamples of different ways of gathering and presenting reward intelligence:-    Holding a meeting with the resigning employee and considering the benefits offered to him by the new employer may help to know the new benefits offered by other institutionsPrinciples of Total RewardsRewards can be defined as all types of payments received by employees for their work. These include:Direct financial rewards: consists of all the employee gets in the form of wages, salaries, bonuses, and commissions, which are submitted at specified times.Indirect financial rewards: Unpaid financial rewards include direct benefits and can be understood as part of the contract between the company and the employee such as paid leave, training, and end of service benefits, transfer, and other services.Non-financial rewards: such as career development and opportunities for advancement, as well as a favorable working environment and conditions for good performance.A good reward strategy involves balancing the company’s financial ability and competitiveness with other companies. Benefits and rewards affect employees productivity and satisfaction, as well as the company’s ability to achieve its goals effectively. It is the responsibility of the company to ensure that the rewards make the employees creative and motivated to perform their work and to know the benefits provided and will be provided to them.Equity and Fairness:To create a successful rewards system equity and fairness must be the main component of the reward system, the absence of equity and fairness in the employees’ rewards policy is the main reason for the employee to leave the organizations. The idea of equity and fairness also determines whether the employee will make an additional effort to reach the organization’s goals or even their own objectives. For these reasons, it is important that the organization ensure that the reward policy of their employees is rooted in the principles of equity and fairness.Employee’s sense of inequality or injustice, both externally and internally, leads to low morale and loss of organizational effectiveness. For example, if employees see that they are receiving unfair rewards, they will then limit their efforts or leave the company, thereby damaging the overall performance of the company.Total Reward is a term that includes monetary and non-monetary rewards that the organization provides to employees includes compensation and benefit with motivation and personal growth; in return, the organization attracts and retains competent employees through these rewards.The total rewards system depends on the type of goals the company is trying to achieve. For example, if the organization trying to attract professional and talented employees the organization should look at the total compensation for such type of employees get or look for it through the recruitment agencies (or any type of gathering reward intelligence we mentioned above). Total rewards are the comprehensive monetary and non-monetary return employers provide employees in exchange for their time, talents, efforts, and results. These returns include health care services such as medical, prescription, dental and vision coverage, wellness offerings such as assessment and screenings, retirement benefits such as pensions, 401(k)s, retiree medical and life insurance, work-life programs such as paid and unpaid time off, dependent care, short-term and long-term disability, and flexible work schedules (Kwon and Hein, 2013). They also include base salary, bonus, stock options, variable pay, executive salary, and perks like company cars.Offering employees career opportunities are also part of a total rewards strategy, a practice an increasing number of employers are adopting. Career opportunities include learning in the form of tuition assistance, corporate universities, attending seminars and conferences, self-development, challenge assignments, and even sabbaticals. Coaching and mentoring also fall into this category, along with advanced opportunities like overseas assignments, career ladders and pathways, and providing employees on and off ramps throughout their careers.Good total rewards packages attract, retain, and motivate employees to do their best work, and they should be modified on a regular basis to keep employees engaged and to meet employees’ changing personal and professional needs during their career cycles.Have you thought about what it is that specifically keeps your employees loyal to your organization? Do you believe there are steps you, as the decision maker of an organization, can take to offer your team members incentives that will excite and retain them over the years? If you are a progressive leader, you may have worked to implement a robust total rewards package intentionally.Employees want to join an organization not only for the great experiences they will receive in their work, but they are also interested in the perks that will help them grow outside of the workplace. Total Reward is a concept that describes all the tools available to an employer that may be used to attract, motivate and retain employees. To an employee or candidate for employment, the notion of total rewards includes perceived value as a result of the employment relationship.It is a continuing trend that clients ask us to help them come up with creative ways to attract and retain high performers and valued team members. The strategy of offering total rewards has advanced considerably and is leveraged as a way to attract, motivate and retain talent.Elements Of A Reward System Business Strategy The starting point of the reward system is the business strategy of the organization. This identifies the business drivers and sets out the business goals. The drivers are unique to any organization but will often include items such as high performance, profitability, productivity, innovation, customer service, quality, price/cost leadership and the need to satisfy stakeholders – investors, shareholders, employees and, in local authorities, elected representatives. Reward Strategy and Policy The reward strategy flows from an analysis of the business drivers. The question is: ‘How can these be supported by reward in order to achieve the goals of the business?’

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