Background of Royal Bank of Canada
Discuss about the Analyzing The Compensation Programs Of The Royal Bank Of Canada.
The report helps in analyzing the compensation programs of the Royal Bank of Canada along with proper determination of the rate of pay of new hires with the existing staffs in the company in order to properly ensure internal equity. The different process that is used by the company has to be analyzed as well as this will help in ensuring that the compensation is aligned with the external equity.
The main aim of the report is to understand the different benefits that are received by the employees for working with the respective organization. The report helps in understanding the effectiveness of the compensation program in the company. The main purpose of the report is to understand the different kinds of benefits that are received from the organization.
The structure will be based on the analysis of the rate of new hires in the company along with understanding the different benefits that is received by the employees or working with the respective organization. Proper analysis has to be done on the analysis of the compensation program with the help of Likert scale and proper recommendations has to be provided to the company in order to improve the compensation program.
The Royal Bank of Canada is Canadian multinational company that is related to financial services and this is the second largest bank in Canada. The respective bank is serving more than 16 million clients as well as 80,000 employees worldwide as well. The corporate headquarter of the company is situated in Quebec and the bank was founded in the year 1864 in Nova Scotia ("Personal and Business Banking Services - RBC Royal Bank", 2017).
The function of the Royal Bank of Canada is banking with the commercial and personal operations and it has serves more than sixteen million clients through the network of more than 1200 branches. There are more than 80,000 employees who are working the respective bank and it is providing cross border services to the Canadian travelers and expats. The employees who are working with Royal Bank of Canada are highly educated and they are having proper knowledge about the financial services that has to be performed by the organization. The location of the Royal Bank of Canada is situated at 700 Place d'Youville, Ville de Québec, Canada.
Salary range is the pay range that is decided by the different employers in Royal Bank of Canada with the performance of a particular function or job. The range of salary is determined with the help of pay rates of market that depends on the knowledge and skills of the employees in the organization. There are different companies wherein the compensation strategy is based on the level of experience of the employees as well as there are different differentiations in the salary that is provided to the employees who are working in the organization for many years (Baxter et al., 2014).
Salary Range and Internal Equity Factors
In Royal Bank of Canada, the evaluation of the pay rate is dependent on several internal equity factors:
- Proper fairness perception wherein the culture of the organization is an essential factor and this will help in proper development and maintenance of the fairness culture as well (Feldman, 2016). When the different employees are getting equally paid for different kinds of employees in the organization, it means that the management is fair to the employees. In Royal Bank of Canada, there is proper perception of fairness as the employees respect the higher officials as they are fair to the employees and the employees listen to the guidance as this will help in proper achievement of the tasks as well (Pepper & Gore, 2015).
- Proper reduction in exposure to discrimination is wherein the higher officials of the respective bank will provide proper emphasis on the internal equity. This will offer proper protection against the lawsuits related to discrimination (Belghitar & Clark, 2014). The higher officials of the bank has to pay equally to the different employees who are performing same kind of tasks in the company as this will reduce the risk of discrimination among the employees. With the help of proper internal equity, this will help in reducing the risk of salary discrimination among the employees (Kaspin, Gorman & Miller, 2013)
- Consistent and proper standards is properly maintained by the respective bank as proper consistent standards are met by the higher officials of the company in providing salary to the employees (Coles, Daniel & Naveen, 2013). While conducting a proper analysis of the job, proper abilities as well as responsibilities are required in understanding the different positions of the employees in the workplace. This will make the entire task much easier in nature for paying them fairly (Bodnar et al., 2016). This is helping in motivating the employees in the workplace and this helps in improving the performance.
Processes used by company in ensuring compensation is aligned to marketplace
- Royal Bank of Canada has to properly keep up with the competition in the marketplace as this will help them in motivating the employees and making them work for the respective company (Gormley, Matsa & Milbourn, 2013). This is done because the employees may resign and work for other companies where the salary is higher than the previous one and this will help them in performing well (Rahmana, 2016).
- Royal Bank of Canada has to help with the negotiation as when the employees are working for a particular time, it is essential for the company to properly understand the work performed by individuals and ask for raise in salary as well. Royal Bank of Canada has to understand the pay structure of other companies in the competitive market as this will help in retaining the employees in the workplace (Osibanjoet al., 2014).
- Royal Bank of Canada has to perform competitive pricing as this will help in keeping the salary in line with the competitors in the competitive market. The wages that are paid to the employees by the company is ultimately priced into different products as well as services. Royal Bank of Canada has to stand in competition with other companies as this will help them in competiting properly in the market (Pathak, Hoskisson & Johnson, 2014)
- Lastly, Royal Bank of Canada has to conduct proper researching as this will help them in staying on the top of the market. Proper market research has to be conducted by the company as this will help in figuring out the position of other companies. Proper conducting of the research in the market will help Royal Bank of Canada stay in the top of the list (Liao & Hsu, 2013).
There are different kinds of benefits that are received by the employees in the respective bank. The Royal Bank of Canada is providing different benefits that include:
- Elder and child care benefits is provided in the respective bank as this is one of the essential benefits that are required by the employees who are working in the organizations (Kuratko, Covin & Hornsby, 2014)
- Compensation time is available in Royal Bank of Canada as the employees who work for extra hours in the company are paid extra benefits and payments or there are other benefits such as take up to an hour off as this will motivate the employees.
- Family and friendly benefits are provided to the employees of the respective bank wherein the employees are provided with a paid leave in order to visit the family when he/she is staying away from family members and creating their own schedules for work as well (Larcker, McCall & Ormazabal, 2015).
- Flex time is available in Royal Bank of Canada as well as this will help in providing the employees flexi timing and this will provide the employees proper motivation for performing the job and delivering it on time as well (Gupta & Shaw, 2014).
- Health insurance is the standard benefit that is provided to the employees as this provides option that will act as benefit to the employees of the organization.
- Personal and parental leave is followed by Royal Bank of Canada wherein the employees are provided with three months of paid leave for family or personal issues or illness and this will help in motivating the employees to perform better in the organization as well.
- Overall effectiveness of compensation program
Completely Ineffective (1)
Absolutely perfect (5)
Overall effectiveness in compensation program
You are satisfied and happy with the compensation program
You are happy regarding the associate works
I receive the correct amount of salary for the work performed by me
I feel that the benefits provided to me is not up to the mark
I feel I require proper gain in the salary as per my performance
I feel more training programs has to be organized in order to make the employees effective in nature
Table 1: Overall effectiveness of compensation program in Royal Bank of Canada
(Source: Created by author)
From the table, it can be analyzed that proper effectiveness is required in the compensation programs that are conducted by the Royal Bank of Canada as this will help in analyzing the different kind of issues that are faced by the individuals in the workplace. The salary that is being provided to the employees in the workplace has to be revised as this will help the respective company in standing out in the crowd and this will help in being more effective in nature as well.
The other companies in the competitive market provide other benefits in the company that is not provided to the employees in the Royal Bank of Canada and proper strategies has to be implemented as this will the company to motivate the employees. The respective bank can offer more than a paycheck to the employees as this will help in improving the strategy of compensation. There should be proper activities that will help in promotion of employees as this will help in motivating employees.
Therefore, it can be recommended that Royal Bank of Canada needs to implement proper strategies relating to compensation of the employees. The respective company needs to provide promotions that are related to the performance of the employees as this will help in providing motivation to the employees and this will help in motivating the employees. Royal Bank of Canada has to properly develop proper range of salary for different employees and the employees who are performing equally has to be paid equally as well as this will help in providing motivation to the employees in the workplace. Proper performance management system has to be incorporated by Royal Bank of Canada as this will help them in providing proper competition to other companies and this will help them in performing better as well.
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