NOKIA

Nokia is the world leader in mobility, driving the transformation and growth of the converging internet
and communication industry. Nokia started its operations in India in 1995 and since then has played
a pioneering role in the growth of cellular technology in India. Today it is the leading brand in the
mobile devices market in India with one of the largest distribution networks.
NOKIA’S COMPENSATION STUDY
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Nokia’s Total Compensation Package is tailored for each country.

It typically consists of elements such as annual base salary, incentives, bonuses, possible stock
options or performance shares, flexible Work-Life balance solutions, and other local benefits.
•

Nokia rewards employees for good performance, competence development, and for
overall company success.
•

This creates a positive and encouraging environment with opportunities for employees
to
optimize their potential and be rewarded fairly.
•

Higher performance and contribution leads to higher rewards. The Nokia global market competitive
rewards structure addresses the need for flexibility, personalization, empowerment and commitment.
The basic salary is set to meet market conditions, the demands of the job and individual competence
and performance. The variable part may consist of incentives or bonuses and other compensation,
such as overtime pay and call-out pay.
Nokia provides compensation on competitive basis it provides employees with market competitive
rewards through a flexible global structure. The Compensation package consists the following
•

Basic pay, equity bonuses and incentives

Health and welfare benefits

Vacation and time off

Insurance (healthcare and life)

Transportation (free buses)

gifts on special occasions (e.g. birthday, marriage)

Relocation support (need based)

Work related mobile phone

Education assistance
•

Crèche support

Bonus System
Short-term incentive programs such as individual, team, project/program incentives and
the
Nokia Connecting People Bonus allow Nokia to offer immediate rewards for employee and
team achievements. Eligibility for an incentive, bonus or stock option plans is defined by
the
content and nature of each individual's job.
Local Benefits
Additional local rewards and benefits are also developed to complement the global
programs
and to ensure that the local market conditions are met.
Annual Reviews
Nokia has implemented a global process, where the change in the pay level for each
employee is based on the results of the annual performance review.
Health
Nokia's Work-Life balance solutions provide health benefits and local retirement benefits are tailored
to individual needs according to factors such as tenure, contribution, performance, roles and
responsibilities.
Nokia offers services, programs and guidelines to support employees´ possibilities to maintain work-
life balance according to their changing needs and life situations. Typically they include teleworking,
mobile working, flexible working hours, sabbaticals, study leaves, health care services as well as
recreational activities and other activity clubs.
Flexible Working
Depending on the situation and needs, flexible working solutions can provide alternative modes of
working such as teleworking at home or at other locations (e.g. working at remote sites).Nokia
provide employees with innovative solutions aiming at having positive effects on the overall quality of
life, job satisfaction and job performance.
Flexi Time:
Depending on the local market conditions, employees may take advantage of flexi time
including flexible working hours and part-time working.
Time Off:
Nokia´s flexible working solutions include unpaid time off and sabbaticals. These solutions support
Nokia´s philosophy of Employee Personal Growth and Self-management and enable employees to
take extended leave from work.

Health-care Services
Nokia aims to maintain and improve the working environment and well-being of its employees by
offering medical check-ups, counselling and insurance programs to the employees.
Volunteering
Nokia's global volunteer program Nokia Helping Hands gives employees a chance to contribute their
time and effort to worthy causes in their communities. Nokia employees can use 1-2 working days
per year for Nokia Helping Hands volunteering.
Other Services
Sporting, social and cultural activities and workplace relationships are promoted within the company.
These well-being services can also include laundry service, cafeteria, take-away food, day care and
on-site concierge services etc.
Source: www.nokia.co.in

Analysis
Each company is pioneer in their own way of producing their products and equally
compensating the employees.
TATA Motors, L&T and most companies have evolved from the traditional fixed pay and more and
more variable pay is introduced in every company. Nowadays we find that the variable component is
quite large as compared to the fixed one. There are huge advantages due to a variable pay
compensation which are as follows:
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Employee accountability
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Motivation to perform more

Performance leading to rewards and recognition

High self motivation to perform

Increased stress levels due to heavy expectations

Performance anxiety
•

Employee worn-out
Thus the five manufacturing companies are equally good in compensating the employees but a
heavy variable pay at M&M is a cause of concern. M&M should therefore motivate the employees by
giving other benefits which may include a tour holiday fully sponsored etc. Such practices would not
only give the employee a much needed break and also motivate everyone to work. It should be
noted that by giving only monetary benefits would not suffice the needs of the employees as not
everyone is motivated only by money. Nokia and Caterpillar have this ideology of overall growth of
an individual which is the best way to compensate an employee
Thus the company should look after the overall growth of the individual, match his
career
aims with the goals of the company.