Compensation and Benefits Analysis 2022

Running Head: COMPENSATION AND BENEFITS
Compensation and Benefits
Name
Institutional Affiliation

COMPENSATION AND BENEFITS
Executive Summary
The Toronto-Dominion Bank has become a multinational Canadian banking firm
that provides financial goods and services. The firm was established in 1855 and had its
headquarters in Toronto, Canada. It operates across divisions of Canadian Retail, American
Retail, and Wholesale Banking. TD Bank has massive, close to 19 million clients assisted by
more than 2400 branches in Canada and the United States. TD Bank works with a vision of
"being the best bank" through a best managed, client-focused, an integrated financial
company with a distinctive and diverse culture of employees. The operating hours of the
Bank range between 15 hours and 30 hours. TD Bank has a structured strategy for recruiting,
maintaining, and empowering high-performing workers and a union climate for the
workforce (TD Bank, 2019). TD Bank is competent enough to rattle out some of the
key challenges that banking sectors usually have to face, such as low loan growth, the weak
Canadian economy, and drops in commodity prices (Campiglio et al., 2018). TD Bank
provides its customers unique advantages such as; personal loans and credit cards, home
equity loans, mortgage loans, investments, and deposits in one convenient spot.
Furthermore, the well existing position of TD Bank in Canada and strong brand awareness
are its leading competitive advantages throughout the banking industry (TD Bank, 2019).

COMPENSATION AND BENEFITS
Workforce Summary
Statista (2020) shows that TD Bank engaged a workforce of 89,031. In 2020, TD
Bank has been listed as among the Top 100 Employers of Canada. The mean age of TD Bank
workers is typically 25 years, and the average tenure is almost 6.3 years for all workers (TD,
2015). According to the new Talent Development Capability Model, TD professionals
require interpersonal skills, together with professional expertise to develop successful team
culture, engagement, trust, and confidence in the organization. Moreover, successful TD now
embraces employees having a business-partner and proactive approach to predict and adapt
evolving needs in order to create a competitive advantage (ATD, 2020). Strategic
management refers to defining the purpose of the company as well as the strategies and
actions for achieving that objective (Emeagwal & Ogbonmwan, 2018). Management's
strategic policy of TD Bank is to stand out with a distinct mark from its competitors and give
trust to its consumers, societies, and employees to succeed in an evolving world. Workforce
demographics such as age, expertise, and employee experience make a significant impact on
the organizational design of compensation strategies (Agyeman & Ponniah, 2017). TD Bank
has developed innovative incentive plans to recruit, retain, and reward employees while
holding its demographics in mind.
Compensation Analysis
The compensation mix is the fixed wage-to-variable wage ratio. The first reflects
the base pay, and the latter depicts the target reward. Base pay is the actual wage paid to an
employee, without bonuses, benefits, or raises. It is the pay rate which an employee earns in
return for services. Indirect compensation applies to all components of remuneration that are
made in addition to the minimum wage, like health insurance and pensions. Furthermore,
merit pay refers to the pay when an employee is awarded for his performance by making a

COMPENSATION AND BENEFITS
permanent raise in his base salary (PayScale, 2020). There are usually three levels of a
company that includes the CEO, salaried workers, and hourly staff.
In the same way, TD Bank includes three levels, while some separate work
descriptions fall under these levels. Titles like Manager, Senior Manager, IT Architect, and
Director represents salary employees. On the other hand, the Credit Analyst, Customer
service representative, Teller, Assistant Head Teller, Banking Specialist, and several other
job titles fall under hourly-worked workers. TD Bank compensates its workers for the base
salary according to their job titles. Similarly, indirect and merit compensation is often
contingent on various factors, such as their level of performance (TD Bank, 2018).
Moving into the base pay compensation mix, it is found that most TD Bank workers
are paid according to well-defined salary levels. The compensation mix of the CEO is
calculated on the basis of the attainment of defined results, i.e., efficiency of the bank. The
annual base salary of the CEO in 2019 was $1.4 million (The Canadian Press, 2020). The
highest paying staffs of TD Bank are Directors earning $200,000 per annum, and lowest-
paying employees are Developers earning $53,000. Average TD Bank hourly base pay varies
for Data Entry Clerk from around $12.26 an hour to $83.72 an hour for Senior Project
Manager (Emolument, 2017). TD does not keep a paycheck and is paid biweekly to all its
employees. Indirect compensation includes up to 16 weeks off maternity/paternity leave to
both parents.
Similarly, paid-time-off up to 6 weeks, health insurance, and several workplace
discounts on goods, events, and other attractions are offered to every employee. Moreover, on
the basis of their growing skills and productivity, merit pays given to employees in the form
of increment in their base salaries. TD Bank, without requiring employee contributions,
offers 2 to 6 percent of earnings to each employee in the form of retirement benefits (Fechter,
2019).