Employee Compensation and Benefits Strategy Report for Telus Company

This report provides an in-depth analysis of Telus's compensation and benefits strategies, focusing on how the company motivates its employees. It begins with an executive summary that highlights the complexities of designing a reward package, emphasizing the importance of aligning company goals with employee compensation. The report then offers a company analysis of Telus, a major telecommunications provider in Canada, discussing its market position, competitive advantages, and workforce demographics, including the increasing number of millennials. It explores various factors influencing compensation, such as unionization, economic conditions, labor market dynamics, employee turnover, and competition. The report details Telus's compensation strategy, emphasizing performance-based pay, bonuses, and stock options, and it examines the application of compensation and benefit strategies to motivate employees. It also discusses contextual and structural variables influencing Telus's human resource practices, including decision-making, leadership styles, and diversity management, while acknowledging challenges such as communication and cultural barriers. The report concludes by emphasizing the importance of a comprehensive approach to compensation and benefits in fostering employee engagement and organizational success.

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Employees Compensation and Benefits
Name
Institution Affiliation

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Executive summary
Designing a reward package for a CEO is very complex requiring many variables.
However, the structure of compensating the CEO, salary staff, and hourly staff should be
directed to aligning the goals of the firm and adopting a common model for compensation. It is
very important to identify the drivers of compensation in the company. This paper seeks to
identify a reward package that includes a mix of salary, benefits, and perquisites that will
motivate employees. It will balance individual and organizational needs giving rise to an optimal
compensation structure.

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Company Analysis
Telus is a telecommunication company which offers telecom products and services. The
company is one of the largest telecommunication companies in Canada with its head office
located in Alberta. It has five branches spread across the provinces. In 2001, the company was
incorporated and registered as a trademark and its main focus was to pursue opportunities in the
operating systems in the telecommunication but in recent years it expanded its line to producing
mobile phones. There is high competition among the various brands that produce and sell
software and phones. However, Telus has invested in offering high quality products; develop
greater human asset and having a customer intimacy model in place which has allowed the
company maintains its competitive edge. Dominance in the market has seen the company scale
into greater heights regarding financial performance. The market for telecom products is very
huge because there is an unstoppable growth of the industry. The operating system technology
targets two segments, tier 2 and tier 3 telecom operators. The market for phones is estimated to
grow by 70% in the next two years. The number of employees has been increasing since the
incorporation of the company in 2001, the majority being male though there has been a need for
hiring more women in recent years. The workforce is of different age groups, but the majority
are millennials who have the skills and who the company believes are very innovative. These
employees have demand for a good compensation package that will motivate them to be
productive.
The company uses some resources to create output which contribute to its success. They
include;

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 People and skills. The software experts are trained on a regular basis for them to be
competent in their research and managing the information system.
 Storage whereby the information system provides a wide storage of data compared to those
offered by competitors.
 Access. Minimal costs are incurred in preparing ,sharing data and injecting secondary data
making it easily accessible to users.
 Network. The information system is supported by over 80% networks across the globe. This
has made it to be preffered by users boosting sales.
Change Factors
As business keeps on changing, the approach to compensation should change as well.
There is no flexibility in compensating employees based on position. Establishment of a total
reward package that focuses on rewarding skills and performance has been at the top of the
human resource department agendas which has to be attained. This will promote employee
ownership. In coming up with this package, there are some factors that determine the policy
choices in compensation. These factors include;
Unionization
Employees wanting to belong to a particular labor union will affect compensation
because the union dictates the minimum compensation package for its employees. They will be
forced to give in to the pressure of labor representatives in determining and changing the pay
scales. Labor groups lobby together their grievances and concern to address the government to
make the government respond quickly to their burning issues.

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Economy
Changes in the economic conditions also affect the reward package of employees.
Salaries are different in an economy under depression and when it is booming. In case of a
depressed economy supply of labor may increase resulting in low rates. Depression in the
economy expose the company to risk of lowering profits, and this is a major concern to the
management which requires prompt action.
Labor market
The demand and supply for human resource affect the fixation of compensation packages
for employees. When the supply exceeds the demand, a low wage may be fixed, and the vice
versa is true. The productivity of labor has risen due to improved technology making it possible
for employees to be rewarded through piece rates (Gatewood & Barrick, 2015). The proper
understanding of the labor market by the company helps in strategy designing when it comes to
exploiting new opportunities in the market. The recruitment of the right personnel acts as a boost
for the company, and this greatly helps in offering the right product and first class customer care
services by the company.
Employee turnover rate
High employee turnover hurts the company as it will have to incur more costs in finding
replacements. In order to reduce the turnover, the company will be forced to set compensation
package and benefits which will motivate the employees to continue working towards the
success of the company. (Alam & Rubel, 2014). High employee turnover means that the
company is on the verge of failure in its endeavor to exploit and meet market opportunities in the
right manner.

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Competition
This is a factor that may cause changes in the reward system of the company since the
company will also want to offer competitive compensation packages in order to maintain its
dominance in the market (Asibanjo & Heirsmac, 2014). If competitors offer high salaries to its
employees, the company has to offer best commissions, benefits, and bonuses to retain the
workforce. This factor, however, is not likely to affect the company because the reward package
offers employees a benefit and bonuses. Stiff competition from competing firms that offer
bumper salaries to their personnel forces the company to remunerate their staff well so as to
encourage talent and skills retention.
Compensation Strategy Placement
Based on the variables mentioned above, Telus Company adopted compensation strategy
based on performance pay for great performance rewards the best performance and not mediocre
work. Hence performance is to be evaluated and measured on a regular basis, and a clear
appraisal method has been developed for employees to understand the criteria clearly (Lu et al.,
2014).
Individuals are offered bonuses based on attainment of their goals. In addition, reward is
also tied to company’s profits where 20% is shared among the workforce. The company offers
stock options to employees where they are allowed to purchase company shares for a specific
price during a specified duration.
This compensation strategy has seen the company maintain its competitive advantage
leading in the telecommunications sector. This is because employees get to control their
performance and a slight difference in performance is easily identifiable.

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Compensation analysis:
Gupta & Shaw (2014) opined that the overarching term compensation is the kind of
strategy formed by business experts in order to motivate the employees for getting good
performances. Employees while providing services have to face immense challenges in
satisfying the needs and demands of the customers. Compensation and benefit is the systematic
strategy for motivating employees towards services. Controlling the performance level of
employees has major significance. Telus being one of the most recognizable telecommunication
brands of Canada has implemented several compensation strategy and policy based on which
employees tend to show their best services. Telus in order to run the business effectively has
implement performance pay, quality bonus, rewards and recognition and so on. With the rapid
progress of globalization the rage of target customers are increasing day by day. As opined by
Anitha (2014), employees have to provide services beyond going the shift hour. Therefore, Telus
business experts in order to give an effective compensation to the employees have decided to
provide performance pay. The performance pay structure implies that after meeting the allocated
target employees would get a certain amount of money. As a result, employees by anyhow
intends to fulfill the allocated target so that they can achieve performance pay.
Moreover, after crossing estimated target the people are able to get additional incentives.
In quest of delivering good production employees sometimes forget to maintain quality of
services. In order to overcome this kind of issues Telus business experts have decided to
implement quality bonus. Based on the quality of productivity the employees are able to achieve
quality bonus. Pan (2015) opined that the concept of performance pay, quality bonus is not
effective in maintaining work life balance of the employees. As a result, large number of
employees has to face immense health issues. In case of avoiding health issues organization like

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Telus has decided to follow health and safety act at the workplace. By implementing this very
specific act, business experts tend to take the responsibility of employees who face any kind of
health issue at the workplace. These kinds of compensation facilities enable the employees in
availing overtimes and maintaining flexible work hour. Samnani and Singh (2014) stated that
structural behavior is the concept with the help of which employees have to maintain specific
organizational structure while being associated with an organization. Structural behavior is
constituted with several components including organizational behavior, organizational culture
and organizational ethics. Long and Perumal (2014) stated that every business organization is
constituted with specific structure. Employees being a part of this organization have to follow
this structure in order to maintain discipline. Business experts of Telus tends to maintain
effective communication with the employees in order to motivate the employees for maintaining
structural behavior.
Contextual variables and structural variables:
Contextual variables signify a transitory factor that involved the setting in which an
interaction occurs. Contextual variable is constituted with several components including task
environment, business strategy, organizational size, organizational workforce and technology.
Telus has appointed huge number of workforce by giving a flexible work environment so that
employees tend to perform well towards the services. On the other hand, organization should
follow proper organization structure to give a feasible work environment. Structural variable
includes decision making and leadership, control system, communication and information,
reward system and job design.

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Telus tends to follow a specific management hierarchy in order to control the entire
process of business in the global market. As per the managerial policy of Telus, business
managers follow participative leadership style at the workplace. Participative leadership style
enables the employees in sharing their own views and thoughts to the managers. As a result
employees get motivation in performing well towards business services (Noe et al., 2014).
Managers of Telus on the other hand do not wish to impose their own decision on the employees.
As a result, both the managers and the employees can maintain an effective communication with
each other.
Employees do not show their reluctant attitude in maintaining this rules and regulations.
As per the management system of Telus, business experts tend to follow proper business ethics.
Employees from various geographical backgrounds and attitudes tend to get equal priority and
response (Bal and De Lange 2015). By implementing gender equality act, human resource
managers tend to recruit both male and female employees with equal respect and dignity. Large
numbers of female employees are holding higher position in Telus. People belonging to various
geographical backgrounds and attitudes get a complete comfortable environment within the
workplace of Telus due to their flexibility in managerial system.
Implementation of diversity management is one of the most effective steps that made the
entire management system Telus complicated. Human resource managers primarily focus on the
competency and skill of the employees rather than focusing on their cultural backgrounds.
Human resource managers are very much effective in recruiting employees from different
geographical as well as religious backgrounds (Hameed, Ramzan & Zubair, 2014). As a result,
the managers have faced se several issues such as communication barrier, psychological barrier
and cultural barrier. Due to language problem employees have to face immense challenges in

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sharing their thoughts and views effectively. As a result, managers have to face difficulties in
delivering the services within proper time. Being unable to meet the deadline employees have to
face dissatisfaction from customers’ feedback. However, employees from diverse cultural
backgrounds and attitudes have immense psychological barriers while making an effective
collective decision (Oladapo, 2014). Due to cultural barrier employees cannot exchange views
and thoughts regarding the success of business. However, as per the initiates taken from human
resource managers of Telus, employees from different cultural backgrounds are provided
effective training and career development program. With the help of an effective career
development program, employees have enhanced their communication skill. As a result,
managers do not have to face challenges in interacting with the customers effectively.
Management system:
Management system of Telus is constituted with several factors including quality
system, performance management system, policies and procedure, information system, talent
management system, change management system, risk management system and so on.
Controlling the performance level of employees has major significance. Telus being one of the
most recognizable telecommunication brands of Canada has implemented several compensation
strategy and policy based on which employees tend to show their best services. Telus in order to
run the business effectively has implement performance pay, quality bonus, rewards and
recognition and so on. With the rapid progress of globalization the rage of target customers are
increasing day by day.
Telus business managers do not intend to implement organization policy without
communicating with the employees. As per the opinion of Gerhart and Fang (2014), the success

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of a business organization is entirely dependent on the performance level of employees.
Therefore, implementing health and safety act, anti-discrimination act, gender equity act leaves
major significance. Therefore, business managers before making organizational strategy tend to
communicate with the employees effectively. After making a collective decision the managers
tend to implement the policy within workplace.
Compensation mix:
Compensation plan determines what the Pay Mix should be for each sales role. Pay mix
in general point of view is the ratio between base salary and pay of incentives at the stipulated
target performances. Common practices that leaves a major impact on compensation mix
includes competitive pay analysis, industry practices, compensation philosophy, culture and job
dimensions. The primary purpose of making a proper compensation mix is to evaluate basic
salary of employees, their benefits and incentives (Van De Voorde & Beijer, 2015). Employees
would like to give their additional effort only when they would get necessary benefits in the form
of increment, incentives or bonus. Telus being one of the most recognizable telecommunication
companies of Canada has decided to implement two types of compensation plan including
monitory and non-monitory. The business managers intend to provide rewards and recognition to
the employees while implementing compensation and benefits. By keeping the basic salary fixed
the employees are given equivalent rewards like gift coupons or any kind of material aspects. In
addition, in order to appreciate the performance level the employees are given a promotion for
holding the higher position (Gerhart & Fang, 2014). Telus tends to promote the employees as per
their performance level rather than showing their experience. On the other hand, monitory
benefits come in the form of increment, incentives and bonus.

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Recommendations and rewards:
However, after evaluating the overall strategies of Telus regarding compensation and
benefits some of the recommendations can be provided and the recommendations are as follows.
1. Telus should implement some social rewards and recognition policy in order to grab the
attention of employees. It has been observed that along with giving immense facilities and
benefits the business experts are maintaining rotational shifts. Employees have to follow this
particular shift in order to maintain a work balance (Anitha, 2014). Due to this rotational shift,
employees are facing immense health issues. In this kind of situation, the rate of employee
turnover in Telus is raised enormously. However, it can be recommended that Telus can follow a
particular shift for the employees based on which employees would not face challenges in
maintaining this particular shift.
2. It has been observed the human resource managers of Telus within the gradual progress of
business industry do not give their employees effective training and development session for
enhancing their skills and competency level. In this kind of situation, employees sometimes fail
to meet customers’ needs and demands (Pan, 2015). In order to render good performances the
business experts should enhance their budget for training and development purposes. As a result,
customers would not have to face challenges in receiving their services properly.

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