Compensation and Benefits Management

The paper discusses the benefits and compensation provided in the Abu Dhabi Commercial Bank or ADCB, UAE. The paper analysis in details the benefits and compensation of the bank considering the pay model, internal alignment, job analysis, competitiveness, compensation benefits process and compensation to the special groups of the organization. The paper also identifies the gap in the compensation, benefits in ADCB, and recommends measures so that this gap can be mitigated.

Running head: COMPENSATION AND BENEFITS MANAGEMENT
Compensation and Benefits Management
Name of the Student:
Name of the University:
Author Note:

1COMPENSATION AND BENEFITS MANAGEMENT
Acknowledgement
My paper would not have seen the light of the day venture I had not received help from
different quarters. The first name that comes to my mind is of our professors of our
university who helped me with his knowledge and guided me whenever possible. I also
need acknowledge the various secondary sources of data from where I took help to
complete this assignment that included books and peer viewed journals .Last but not
the least I would like to thank my parents and friends who motivated me and helped me
in completing my work.

2COMPENSATION AND BENEFITS MANAGEMENT
Executive Summary
The paper discusses the benefits and compensation provided in the Abu Dhabi
Commercial Bank or ADCB, UAE .The paper analysis in details the benefits and
compensation of the bank considering the pay model, internal alignment, job analysis,
competitiveness, compensation benefits process and compensation to the special
groups of the organization. The paper also identifies the gap in the compensation,
benefits in ADCB, and recommends measures so that this gap can be mitigated.

3COMPENSATION AND BENEFITS MANAGEMENT
Table of Contents
Introduction........................................................................................................................4
Human Resource Management Department.................................................................5
Compensation and Benefits at ADCB........................................................................5
Gap Analysis and Recommendations..........................................................................10
Conclusion.......................................................................................................................11
References.......................................................................................................................13
Appendixes......................................................................................................................15
Table of figures .
Table 1: Total Assets of ADCB........................................................................................17
Table 2: Operating Income of ADCB...............................................................................18

4COMPENSATION AND BENEFITS MANAGEMENT
Introduction
Abu Dhabi Commercial Bank is also known as ADCB, it is one of the leading
banks in the banking sector of United Arab Emirates (UAE)1. ADCN is the third largest
bank in UAE and it is second largest bank in UAE in terms of assets. This bank was
founded in the year 1985.It is headquartered in Abu Dhabi, United Arab Emirates.
ADCB is a bank that performs commercial, investment, retail, merchant, brokerage and
fund management activities. This bank operates through a network of 48 branches, 4
pay offices and 294 ATMs in UAE. ADDCB also has branches in abroad countries like
India and UK. The Abu Dhabi commercial Bank has almost 4000 employees from
across 49 nations .This bank has a huge customer base with almost 460,000 retail
customers and more than 34,000 clients from corporate and SME. The report discusses
about the human resource management department of the Abu Dhabi Commercial
Bank and provides details about the compensation and benefits of the organization,
which includes the pay model, pay structures and others. An analysis is provided about
the jobs that are offered by the organization, ADCB. The report discusses about the
performance appraisal systems that are followed by the organization and identifies the
competitiveness of the organization, ADCB. The report highlights the Benefit
Determination Process and Benefit Options that are opted by the organization. The
paper also provides the gap analysis in the organization and provides proper
recommendations that should be implemented in order to address the gaps that are
present in the organization, ADCB.
1 Adcb.com. (2018). About. [online] Available at: https://www.adcb.com/about/index.aspx [Accessed 7
Oct. 2018].

5COMPENSATION AND BENEFITS MANAGEMENT
Human Resource Management Department
Compensation and Benefits at ADCB
In the pay model of any organization there are four policies, which are used for
determination of pay of the employee of the organization, it includes the internal
alignment, external competitiveness, employee contributions 2.Out of these pay model
policies or approaches, ADCB utilizes the internal alignment and external
competitiveness as they are very important. Internal alignment monitors how job and
other skills are related and how they are important in order to achieve the goals and
objectives of the organization. The external competitiveness is another important pay
model that is used in ADCB, it indicates the pay comparisons with the competitors of the
organization3. Compensation is a broad term and it is always interpreted in terms of
organizational and individual perspectives4. The strategic perspective of compensation
that are followed by Abu Dhabi Commercial Bank is divided in two categories. It
includes the perspective of organization and it also includes perspective of
employees .The perspective of organization that are followed by ADCB includes giving
reward for work, monetary and non-monetary form ,term of employment contract which
are based on job value ,contribution and performance . ADCB also emphasizes on the
2 Alagaraja, Meera, "Mobilizing Organizational Alignment Through Strategic Human Resource
Development" (2013) 16(1) Human Resource Development International
3 López-Gamero, María D. and José F. Molina-Azorín, "Environmental Management And Firm
Competitiveness: The Joint Analysis Of External And Internal Elements" (2016) 49(6) Long Range
Planning
4 Akram, Kashif and Haim Hilman, "Effect Of Knowledge Management Activities And Dynamic
Capabilities On Employee Performance In The Banking Sector: Empirical Evidence From Pakistan"
(2018) 13(2) Studies in Business and Economics

6COMPENSATION AND BENEFITS MANAGEMENT
perspective of the employees in regards to compensation of the organization. The
perspectives of the employees include livelihood, motivation and commitment towards
achievement of organizational goals. The internal alignment of an organization refers to
the relationship between the pay structure and the design of the organization and the
work5. It emphasizes on the designing of a pay structure, that aids the workflow and it is
fair to employees and their behaviour aimed to achieve the organizational objectives.
The internal alignment in an organization consists of the a group of
commitments ,strategies ,policies and behaviors ,which plays a key role in constructing
integrated customer decision making based on the commercial of the supplier and
ethical commitment and performance . The bank ADCB ‘s is very important both
vertically that is from the CEO level to the lower level and is also important horizontally
that is across silos of the department .The top level of the UAE based bank ,ADCB
consists of the Board of directors . The next level consists of the Internal Audit, Chief
Executive Officer, Legal and Board Secretariat. The lower level of ADCB consists of
various levels that includes the Government Relations, Human resources Group,
Wholesale banking group, Consumer banking group, Group Business Servicers, Risk
management, Treasury Investments. There are several components of Internal
Alignments, which includes the Executive Commitment and support, Integrated Policies,
strategy and structure, consistent internal Communication, meaningful information
metrics and reporting, lastly incentives and accountability for the desired behaviors. Job
analysis is the methodology that is used to gather data and information about the duties,
5 Schniederjans, M. and Cao, Q. (2013). Alignment of operations strategy, information strategic
orientation, and performance: an empirical study. International Journal of Production Research, 47(10),
pp.2535-2563.

7COMPENSATION AND BENEFITS MANAGEMENT
responsibilities, necessary skills, outcomes and also the environment of work for a
particular job. The extra results include the enrolling arrangements, position postings
and the commercials and it also includes the improvements in the execution within the
performance management system .The job analysis is the process or procedure of
identifying then substances of a job, it helps the examiner to comprehend the
imperative knowledge of the job and how it is executed 6. The job analysis of the bank
ADCB includes the following key factors:
 Surveying the job obligations of the present representatives
 Examining the obligations of the work ,assignments and obligations that should
be proficient by the representatives filling the position
 Looking into and offering to different organizations that have comparable jobs
Competitiveness in an organization includes the permanent capability of then
organization to deliver superior or high quality products consistently and persistently
7.This is done in order to surpass the competition in the market and also to acquire new
customer. It also involves increasing the presence of the organization in the market
8.The concept of competitiveness is getting much importance and every organization is
stressing of analysis of competitiveness by finding effective solutions for the
management to gain a competitive edge over the rivals . The Abu Dhabi Commercial
6 Algera, J. A. and M.A. Greuter, Job Analysis. In A Handbook Of Work And Organizational
Psychology (Psychology Press, 2018)
7 Maier, Andreea et al, "Innovation By Developing Human Resources, Ensuring The Competitiveness And
Success Of The Organization" (2014) 109 Procedia - Social and Behavioral Sciences
8 Kaur, Davinder and Roopali Batra, "Effectiveness Of Training And Soft Skills For Enhancing The
Performance Of Banking Employees" (2018) 11(9) Prabandhan: Indian Journal of Management

8COMPENSATION AND BENEFITS MANAGEMENT
Bank has as many as 4000 employees from across 49 nations all over the world . The
Abu Dhabi Commercial Bank has a huge customer base with almost 460,000 retail
customers, more than 34,000 clients from corporate, and SME (Small and Medium
scale Enterprises). The major competitors of ADCB in the banking sector of United Arab
Emirates or UAE includes Emirates NBD, RAK Bank (National bank of Ras Al-Khaimah
PJSC), NBAD (National bank of Abu Dhabi) and Commercial bank International (CBI).
The bank Abu Dhabi Commercial Bank follows some key aspects or factors in order to
design the pay-level for the banking organization9. This key factors or aspects includes
specifying the pay-level policy ,defines the purpose of the survey , specifies relevant
market ,design and conduct survey ,interpret and also apply the result and lastly design
grades or ranges or the bands . Translation of external pay policy into real practice
requires information on the market, which is external. The surveys provides the
necessary data for converting these data into pay levels ,pay mix and structures 10.Thus
it is well understood that the surveys are the process that involves collection of data and
also involves judging about the compensation that are paid by the other employers . In
order to design the pay levels ,mix and the pay structures following steps are followed
by Abu Dhabi Commercial Bank are :
 Pay relationships among the organization
 Set Policy
 Select the market
9 Thanassoulis, John, "Bank Pay Caps, Bank Risk, And Macroprudential Regulation" (2014) 48 Journal of
Banking & Finance
10 Engel, Pascal J., Andreas Hack and Franz W. Kellermanns, "Setting The Right Mix—Analyzing Outside
Directors’ Pay Mix In Public Family Firms" (2015) 6(2) Journal of Family Business Strategy

9COMPENSATION AND BENEFITS MANAGEMENT
 Design the survey
 Draw policy Lines
 Merge internal and external pressures
After performing the following steps, Abu Dhabi commercial Bank designs their Pay
level, Mix and Pay structures. Performance appraisal system solve the problems of
review system in organization by managing it more efficiently and an effectively for the
managers and the employees . In order to retain the top performing employees it is
necessary to recognize them and compensate them properly. With the use of
performance appraisal system ,it is ensured that all the projects are on the track and it is
aimed to achieve the organizational goals and they are aligned with goals of the
company 11. The performance appraisal system is better than a simple database for the
annual performance as by using the performance appraisal system in order to estimate
the readiness for promotion and also to find the successors in an organization 12.There
are several performance appraisal tools that are used in for designing the performance
appraisal systems. The bank Abu Dhabi Commercial bank follows the three
performance appraisal methods .The three methods includes ranking method ,Rating
scale and Checklist method .In the ranking method the rater who does the
ranking ,rank his subordinates on the overall performance . It involves ranking an
employee considering the rank of other employee. By this method, it is easier to rank
the employees judging their performance and the best and worst employee can be
11 Raso, Rosanne, "Working Together To Achieve Goals" (2013) 43(4) Nursing Management
(Springhouse)
12 Joshi, Sandeep Kumar, "Performance Appraisal System Vis---Vis Performance Management System:
An Empirical Study" [2014] SSRN Electronic Journal

10COMPENSATION AND BENEFITS MANAGEMENT
easily identified. In the method that uses the rating scale, there are numeric scales that
represent the job related performance such as the dependability, initiative output
attendance and several other factors. The numeric scales of these factors are computed
and the final obtained scores is concluded and derived. The checklist method, the
checklist statement of the trait of the employees is prepared in the form of yes or no. In
this method, the rater who rates has fewer tasks as he only reports the checking, the
department of HR evaluates from the provided checklists. The employee benefits of the
bank ,ADCB includes the part of the total compensation package that excludes the pay
for time worked that are provide to the employees in whole or in part by the payments of
the employer 13.It includes the life insurance ,pension, worker compensation and
vacation. The special groups in the bank, ADCB includes people who are strategically
important to the organization14 . The bank, ADCB provides the special group people
special treatment with add-on packages that are not received by other employees of the
bank .The compensation components provided to them are unique in respect to the
other employees of the bank. Some of the compensation that bare provide to the
corporate directors includes annual retainer, attendance fess, fees for the participation
on subcommittees.
13 McKeeby, Charles and Randall Nunley, "Employee Benefits: The Age Of Accountability" (2014)
41(5) Compensation & Benefits Review
14 Michelson, Grant, Ad van Iterson and Kathryn Waddington, "Special Issue On Gossip In/Around
Organizations" (2014) 33(4) Group & Organization Management

11COMPENSATION AND BENEFITS MANAGEMENT
Gap Analysis and Recommendations
After analyzing the compensation and benefits provided by the bank, Abu Dhabi
Commercial Bank ,some of the gaps that have been identified are as mismatches
between available needs and employee benefits and not using reliable longitudinal
metrics . It is recommended to use the reliable longitudinal metrics in order to assess
the benefits that are being provided to the employees of the bank and find out whether
the benefits that are provide to them are meting employee needs and whether they are
being administered efficiently and effectively. There are also some mismatches
identified between the available benefits and employee needs15. It is strongly
recommended that the employee benefits that are offered are consistent across the
category of the employees .It is recommended that the uniform leave benefits are
provided ,supplemental benefits are streamlined and it is also recommended to create a
single ,unified system of paid leave for the WRs-eligible employees of the ADCB bank
16.
Conclusion
The report provides a detailed study about the compensation and befits that are
provided by the bank, Abu Dhabi Commercial Bank. After analyzing the compensation
and benefits that includes the pay model, internal alignment ,job
analysis ,competitiveness ,compensation benefits process and compensation to the
15 McKeeby, Charles and Randall Nunley, "Employee Benefits: The Age Of Accountability" (2013)
41(5) Compensation & Benefits Review
16 Gable, Myron and Stephen Holoviak, "Determining The Cost Of Supplemental Benefits" (2014)
17(4) Compensation Review

12COMPENSATION AND BENEFITS MANAGEMENT
special groups of the organization ,it has been identified that the compensation
structure of the organization is well organized and structured . However, the paper
identifies some of the gaps in the compensation and benefits system of the
organization. Considering the gaps, proper recommendations have been provided in the
paper .

13COMPENSATION AND BENEFITS MANAGEMENT
References
Adcb.com. (2018). About. [online] Available at: https://www.adcb.com/about/index.aspx
[Accessed 7 Oct. 2018].
Akram, Kashif and Haim Hilman, "Effect Of Knowledge Management Activities And
Dynamic Capabilities On Employee Performance In The Banking Sector: Empirical
Evidence From Pakistan" (2018) 13(2) Studies in Business and Economics
Alagaraja, Meera, "Mobilizing Organizational Alignment Through Strategic Human
Resource Development" (2013) 16(1) Human Resource Development International
Algera, J. A. and M.A. Greuter, Job Analysis. In A Handbook Of Work And
Organizational Psychology (Psychology Press, 2018)
Engel, Pascal J., Andreas Hack and Franz W. Kellermanns, "Setting The Right Mix—
Analyzing Outside Directors’ Pay Mix In Public Family Firms" (2015) 6(2) Journal of
Family Business Strategy
Gable, Myron and Stephen Holoviak, "Determining The Cost Of Supplemental Benefits"
(2014) 17(4) Compensation Review
Joshi, Sandeep Kumar, "Performance Appraisal System Vis---Vis Performance
Management System: An Empirical Study" [2014] SSRN Electronic Journal
Kaur, Davinder and Roopali Batra, "Effectiveness Of Training And Soft Skills For
Enhancing The Performance Of Banking Employees" (2018) 11(9) Prabandhan: Indian
Journal of Management

14COMPENSATION AND BENEFITS MANAGEMENT
López-Gamero, María D. and José F. Molina-Azorín, "Environmental Management And
Firm Competitiveness: The Joint Analysis Of External And Internal Elements" (2016)
49(6) Long Range Planning
Maier, Andreea et al, "Innovation By Developing Human Resources, Ensuring The
Competitiveness And Success Of The Organization" (2014) 109 Procedia - Social and
Behavioral Sciences
McKeeby, Charles and Randall Nunley, "Employee Benefits: The Age Of Accountability"
(2014) 41(5) Compensation & Benefits Review
McKeeby, Charles and Randall Nunley, "Employee Benefits: The Age Of Accountability"
(2013) 41(5) Compensation & Benefits Review
Michelson, Grant, Ad van Iterson and Kathryn Waddington, "Special Issue On Gossip
In/Around Organizations" (2014) 33(4) Group & Organization Management
Raso, Rosanne, "Working Together To Achieve Goals" (2013) 43(4) Nursing
Management (Springhouse)
Schniederjans, M. and Cao, Q. (2013). Alignment of operations strategy, information
strategic orientation, and performance: an empirical study. International Journal of
Production Research, 47(10), pp.2535-2563.
Thanassoulis, John, "Bank Pay Caps, Bank Risk, And Macroprudential Regulation"
(2014) 48 Journal of Banking & Finance

15COMPENSATION AND BENEFITS MANAGEMENT
Appendixes
Table 1: Total Assets of ADCB
(Source : Adcb.com. 2018).

16COMPENSATION AND BENEFITS MANAGEMENT
Table 2: Operating Income of ADCB
(Source : Adcb.com. 2018).