Submitted To:

Prof. Sehar Butt

Submitted By:
Names Roll No.
Iram Anwar BC13-405
Rabia Zaheer BC13-410
Sidra Amin BC13-438
Mehrab Arif BC13-443
Zareen Hassan BC13-455
Assignment Topic:
Employees Benefits and Services

Section:
(A) Afternoon
Hailey College of Commerce

University of the Punjab

 Table of Contents
HISTORY: 4
ALLIED BANK LIMITED: 4
SILK BANK LIMITED: 4
REASONS WHY WE SELECT ONLY THESE ORGANIZTIONS: 5
EMPLOYEE BENEFITS AND SERVICES: 6
INTRODUCTION: 6
GENERAL DISCUSSION ABOUT EMPLOYEES BENEFITS AND
SERVICES: 7
SILK & ALLIED BANK EMPLOYEES BENEFITS AND SERVICES: 9
1. Monthly Salary 9
2. Annual Increments 9
3. Performance Bonus 9
4. Special Allowances 10
5. Grades 10
6. Vocations and Holidays 11
7. Insurance Benefits 11
8. Loan and Advances 12
9. Personal Services 12
10. Family Benefits 12
11. Mess Service 12
12. Job Related Benefits 13
13. Relocation Program 13
14. Terminal Benefits 13

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 CASE STUDIES: 14
1. Allied Bank (To check the employee Satisfaction) 14
2. Allied Bank (Increase Commitment) 14
3. Silk Bank (Increase Deposits) 15
4. Silk Bank (Reduce Turnover) 15
5. Silk Bank (Increase Satisfaction of Employees) 15
RECOMMENDATIONS: 16

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HISTORY:
ALLIED BANK LIMITED:
The Bank started out in Lahore by the name Australasia Bank
before independence in 1942 and became Allied Bank of Pakistan
in 1974.
In August 2004, because of capital reconstruction, the Banks
ownership was transferred to a consortium comprising Ibrahim
Group; therefore, it was renamed as Allied Bank Limited in 2005.
Today, with its existence of over 70 years, the Bank has built itself
a foundation with a strong equity, assets and deposit base. It offers
universal banking services, while placing major emphasis on retail
banking. The Bank has a large network of over 1100 online
branches and ATMs in Pakistan and offers various technology-
based products and services to its diverse clientele.

SILK BANK LIMITED:

On March 31, 2008, a Consortium comprising of IFC, Bank
Muscat, Nomura International and Sinthos Capital led by senior
bankers Mr. Shaukat Tarin and Mr. Sadiq Sayeed acquired
86.55% stake in Silkbank for around $213 million or $0.47 per
share (PKR 29.3 equivalent per share).
Silk bank prides itself in being a conscientious and responsible
corporate citizen with a commitment to the development of

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Pakistan. At Silk bank our employees are encouraged to give back
to society and we have made concerted efforts towards the
development of healthcare, education and constructive, character
building sports activities in the underdeveloped segments of our
country. Now, presently there are 90 branch network of the Silk
Bank in which 10 are Islamic which are named with Emaan
Islamic Bank.

REASONS WHY WE SELECT ONLY THESE

ORGANIZTIONS:
Because in our opinion these banks are the good examples
for providing benefits to their employees.
We select these organizations because we have some little bit
of knowledge about their employees.
Their employees are so co-operative while when we want to
research on our assignment topic.
These two organizations ae well reputed.
These two organizations are from banking sector and we all
do the internship in the banks thats why we are able to work
in the banking sector little bit.
We have strong references in these two organizations.
The attitude and the behavior of these banks are so polite
and they give information to us as we demanded.

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EMPLOYEE BENEFITS AND SERVICES:
INTRODUCTION:
Employee Benefits are compulsory for motivation, willingness
and contribution of employees to perform a particular task. It is a
process, which arise, direct and maintain human behavior to attain
some goal. The basic purpose of any organization to achieve a
goal so that it important to hold their employees motivated and
satisfied which can be become due to providing the benefits.
Employee performance is a core element of management in
human resources and which can be done by different elements in
which one element is employee benefits. Without benefits,
organization could not run long time because their employees are
not satisfied. Every single employee has skills, abilities and
knowledge, if there is not added motivation, would not open a
way of success, if there is added motivation, would open a way of
success for an organization. There are various sources of
motivation by which can motivate the staff, such as good pay,
provision of accommodation, good condition of service and
opportunity for staff training, and motivated employees can
increase their productive capacity. Employees benefits are more
important, because of these employees can be prove productive
and more profitable employees. When employees are not satisfied
they become less creative, less productive of the organization.

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GENERAL DISCUSSION ABOUT EMPLOYEES
BENEFITS AND SERVICES:
Employee Benefits provided in whole or in part to workers, by
their employers, to supplement their wages or salaries, but are not
required by law.
Some of these benefits include the following:
Life insurance; health insurance; short-term and long-term
disability insurance; sick leave; paid vacation; pensions; tuition
reimbursement; relocation expenses; housing; profit sharing; child
care benefits; and other miscellaneous perks. Different benefits are
treated differently for federal tax purposes. Some are included in
an employees gross wages, while others are excluded. Some are
even utilized as tax shelters.
Some employee benefits are offered only in part by the employer
with the condition that the employee contribute to part of the cost
as well, but the employee is not required to participate and may
opt out instead. This is common with various medical health care
coverage, retirement plans, disability programs, life insurance and
retirement programs, such as 401K plans.
Providing employee benefits is not legally required by employers.
However, the federal Employee Retirement Income Security Act
(ERISA) sets minimum standards for most private industry
pension and health plans which employers provide voluntarily.
Additionally, once health care insurance benefits have been
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offered and utilized and an employee has been terminated, the
Consolidated Omnibus Budget Reconciliation Act (COBRA)
generally makes it mandatory for insurance companies who
sponsored employers with 20 or more employees, to continue to
provide coverage for the terminated employee for a limited time
period, provided he/she can pay the full premium on his/her own
Furthermore, although an employer is not required to provide paid
time off (PTO), when one does and the employee separates from
the company, there are often rules and regulations, which vary by
state, governing the payment of any remaining PTO the employee
still has. Attorneys experienced in the employee benefits area of
law can assist employees in determining their rights to already
established benefits, especially when they are in danger of or have
been terminated. You might think of benefits as being tangible or
intangible. The benefits listed previously are tangible benefits.
Intangible benefits are less direct, for example, appreciation from
a boss, likelihood for promotion, nice office, etc. People
sometimes talk of fringe benefits, usually referring to tangible
benefits, but sometimes meaning both kinds of benefits. Benefits
are forms of value, other than payment, that are provided to the
employee in return for their contribution to the organization, that
is, for doing their job. Some benefits, such as unemployment and
worker's compensation, are federally required.

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SILK & ALLIED BANK EMPLOYEES BENEFITS
AND SERVICES:
1. Monthly Salary
The salary is paid monthly by the 26 th day of every month into
salary accounts of employees. If the 26 th is a non-working day,
then the salary must credit on the last preceding working day. HR
department is responsible to send the salary slip along all the
relevant details. (Applicable for both banks)
2. Annual Increments
Salary reviewed will be conducted for the 1 st April increments
each year.

3. Performance Bonus
The bonus pool is decided each year by the SHRC taking into
consideration various factors such as overall organization
performance, team and individual performance as well as
prevailing market practice. Accordingly, the bank rewards
exceptional performance with a performance bonus in April of
each year. The quantum to be paid is at sole direction of the
Senior Management and is awarded in accordance with the bank
performance as well as the performance of individual employee.
(Applicable for both banks)

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 4. Special Allowances
For Subordinate Staff (Applicable for both banks)
Basic Pay (54% of gross pay)
House Allowance (45% of Basic pay)
Conveyance Allowance (Rs. 300)
Medical Allowance (10% of basic pay)
Leave fare assistance (15% of basic pay)
Utility Allowance (10% of basic pay)
Cash Risk Allowance (Rs. 3000)
Shift Allowance (Rs. 1000)
For Management Staff (Applicable for both banks)
Basic Pay (56% of gross pay)
House Allowance (50% of Basic pay)
Conveyance Allowance (20% of Basic Pay)
Medical Allowance (10% of basic pay)
Branch Manager Allowance (Rs. 8000)
5. Grades
The banks as far as possible ensure that grade wise remuneration
scales will be adhered to. These pay sales will be reviewed
annually will be reviewed annually with a view to market
compatibility. (Applicable for both banks)

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 6. Vocations and Holidays
(Applicable for both banks)
30 days holidays with pay allowed in 1 calendar year.
Accumulation Leave means that leave cannot be accumulated
if any employee not availed during the year.
Leave Encashment means that encashment of un-availed
leave is not admissible under any circumstances.
Application for leave must send 10 days before the date of
leave and must be approved by Supervisor.
30 days are allowed leave without pay which must approve
by the Group Head.
12 Sick leaves are allowed with pay in a calendar year.
Maternity Leave is allowed for only females with a minimum
time period of 6 months. And it is not allowed more than 3
times in the entire life of the service.

7. Insurance Benefits
Life Insurance (Applicable for both banks)
All the permanent employees are eligible for Group Life Insurance
with different amounts of premium according to their grade scales.
Health Insurance (Applicable for both banks)
All the permanent employees are eligible for Health Insurance
with different amounts of premium according to their grade scales
with the facility of his/her spouse and 3 children.
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 8. Loan and Advances
All the permanent employees are eligible in which 0% rate of
interest in Allied Bank for Managers.
All the permanent employees are eligible in which 5% rate of
interest in Silk Bank for Managers.

9. Personal Services
(Applicable for both banks for Managers)
Counseling Services
Advisory Services
Life Event Planning
Mental Health Services

10.Family Benefits
(Applicable for both banks for Only Managers)
Child Medical Facility
Child Education Facility
Parental Medical Care

11.Mess Service
(Applicable for both banks for Only Managers)
They provide subsidized food and up to a limit a budget is granted
to them for dealing their customers.

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 12. Job Related Benefits
(Applicable for both banks for Managers)

Training Programs
Educational Programs

13. Relocation Program

(Applicable for both banks)

If the bank wants to transfer their employees outside the city the
bank arranges relocation programs which facilitate the employees
with the house service or Rs. 25000 per month.

14.Terminal Benefits
(Applicable for both banks)
Provident Fund
8.33% is deducted from employees salary from the date of joining under
Act 1925. And 8.33% is also invested by the employer in this fund.

Gratuity Fund

Gratuity accruing to employees will be equal to one basic salary for each
year of service completed.

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CASE STUDIES:
1. Allied Bank (To check the employee Satisfaction)
The study in 2008 which is done by the Allied Bank revealed that
26% of the sample officers strongly disagreed with their present
salary, 46% disagreed with their pay, 24% agreed with their pay
and 4% strongly agreed with their pay. Similarly, in case of
present promotion policy, 24% officer strongly disagreed with
their present promotion system, 62% disagreed with their
promotion and 14% agreed with their promotion system. This
shows dissatisfaction.
2. Allied Bank (Increase Commitment)
According to the discussion of the manager of Allied Bank in
2001 they found that their employees take loan from the other
competitors banks then its an alarming situation for the bank
owners, so to resolve the problem they conduct a research and
they want to show that why organization employees left their
banks, during their research they found that the other
organizations grant loan to them with low rate of interest as
compare to Allied Bank. Then they decided that to increase the
commitment of employees with the bank they grant the loan to
their employees with 0% rate of interest.

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 3. Silk Bank (Increase Deposits)
When we talk to the employee of the Silk Bank he said that in
2010 HR Department give a target to all employees increase the
deposits for earning high rate of commission on deposits and
promotion. After this there is a significant change in deposits.
Hence it means that all the above stated independent variables will
increase the employee performance.

4. Silk Bank (Reduce Turnover)

According to the discussion of the manager of Silk Bank in 2009
we found that their employees left their banks and move to the
other competitors banks then its an alarming situation for the
bank owners, so to resolve the problem they conduct a research
and they want to show that why organization employees left their
banks, during their research they found that the other
organizations pay them with high benefits and services.

5. Silk Bank (Increase Satisfaction of Employees)

According to the discussion of the manager of Silk Bank in 2010
they found that their employees take loan from the other
competitors banks then its an alarming situation for the bank
owners, so to resolve the problem they conduct a research and
they want to show that why organization employees left their
banks, during their research they found that the other
organizations grant loan to them with less security as mortgage
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and pledge as compare to Silk Bank. Then they decided that to
increase the commitment of employees with the bank they grant
the loan to their employees with demanding 0 security.

RECOMMENDATIONS:
We strongly recommend making employment benefits consistent
across employee categories. We propose providing uniform leave
benefits (except as noted in the full recommendations);
streamlining supplemental insurances; preserving key benefits,
such as the Supplemental Health Insurance Conversion Credits
(SHICC) program; introducing new benefits, including paid
parental leave and Leave Share; developing a centrally funded and
administered Tuition Assistance program to support employees
continuing education and career advancement; and expanding life
enhancers that support wellness and worklife balance, benefit
employees, and provide opportunities to contribute on and beyond
our campus. In addition to simplifying benefits system, we
recommend strengthening its foundation by developing
reliable HR metrics, enhancing benefits education and
consultation, and providing frequent, sustained opportunities
for employee engagement. Consistent, streamlined benefits will be
easier to measure and to adjust when data and voices from campus
suggest changes are needed. Participatory decisionmaking
through shared governance and other opportunities for
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collaboration and engagement will foster transparency and the
continuing vitality of our benefits system. Benefits education is
integral to an effective benefits system. Multiple options for
benefits education and consultation will help employees
understand the pros and cons of benefits choices, select benefits in
a timely way, and use benefits when they are needed.

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