Compensation policies and practices in any Saudi Company Essay

Compensation policies and practices in any Saudi Company - Essay Example The policy also holds that every employee should receive an employment contract specifying their levels of salary. This policy states that every employee of the company should receive a competitive salary and this is aims to ensure that the company is able to maintain a highly competitive workforce with high level of skills and expertise. Through this policy, it is able is able to establish a practice through which the appropriate salary is determined for all employees are therefore able to work competitively for the company. The second policy is the policy on range of salaries and on the method of payment. The range will be dependent on the level of qualification and the work experience that the employee has. The method of payment is monthly and will be dependent on the terms provided on the employment contract (PMU, 2013). Another policy that the company observes is the benefits policy which ensures that various benefits are offered to the employees. The benefits maintained in the benefits policy include an annual vacation for the employees, holidays for the employees provided by the company, offering insurance, savings and retirement plans for its employees, offering shipment for personal effects of the employees and assisting employees when undertaking their education. Another compensation policy that Saudi Aramco observes with regard to compensation of its employees is employee’s promotional policy which gives the well performing employees to higher levels in the company and this will entail a an increase in the amount of salary that the employee receives. The basis for promotion of the employees may also be upon the application for promotion by an employee. It may also be based on review of the academic records of the specific employee. Another compensation policy that south Aramco applies on its employees is overtime work policy. This policy ensures that the employees are compensated for the extra