Compensation Packages at Maaden

Compensation Packages at Maaden

Compensation package refers to the combination of salaries, wages, and non-monetary benefits a worker receives in exchange for employment. The payment may include incentives and bonus payments in addition to the hourly, monthly, or yearly salary. The no-monetary benefits are health care coverage, contributions to a savings account, disability insurance, overtime pay, travel allowances, life insurance, and pension plans. Others are paid holidays, unpaid leave, tuition reimbursement, equity options, and sales commissions. A total compensation package to an employee includes several components that he or she negotiates with the employer during recruitment. The benefits are vital since they offset the costs of essential services, maintain a healthy work-life balance, and prepare an employee for the future.

Saudi Arabian Mining Company (Maaden)

            Maaden is among the fastest-growing metal and mining companies in Saudi Arabia and the world. The business has achieved rapid growth other the past years to become the most prominent multi-commodity mining firm in the Middle East. Over the past decade, Maaden has commissioned new processing plants, mines, and manufacturing plants across Saudi Arabia. The expansion has enabled the company to become a global supplier of aluminum, gold, phosphate products, and industrial minerals (Maaden, n.d.). The key to the success of the company is the empowerment of its employees through competitive compensation packages. Maaden has faced numerous human resource challenges in its early years. Today, the company collaborates with other institutions in the country to develop a professional workforce. Other than salaries, Maaden provides its employees with non-monetary incentives, leadership opportunities, and professional development. The various categories of employees include mineworkers, site engineers, mine supervisors, corporate management, and administrative staff.

Maaden Compensation Strategy

The core of Maaden’s human resource management philosophy is to create and maintain a long-lasting relationship with the employees. In addition, the company aims to attract and retain the best talent from all over the world by ensuring a secure and stable working environment. Apart from being a mining business, Maaden focuses on gaining a competitive advantage by utilizing the experience and skills of the employees. Markedly, this is achieved through the provision of unparalleled job security, healthy relationships, job satisfaction, lifestyle opportunities, and attractive remuneration packages. The company follows the compensation guidelines of all Saudi organizations law in offering both financial and non-monetary benefits to the employees. However, Maaden’s executive compensation policy is linked with the business’ performance, which includes a deferred long-term incentive plan and short-term gains. The nomination and remuneration committee develops and approves the compensation package for all employees in the company.

Young Saudi Graduates

            Maaden runs a graduate program that offers exciting career opportunities to young Saudi graduates from the universities and other higher institutions. The company is continually looking for these people with the vision to join the workforce and help propel the mining business forward. The opportunities may be intellectually demanding and academically rigorous, but the rewards fully reflect the commitment by Maaden (Stadler, 2011). The human resource department at the company aims to develop a globally competitive workforce and supports the progression of all graduates at all levels. Maaden presents several graduate opportunities in all areas related to geology, engineering, human resource, accounting, information technology, and management. Recruited graduates of both masters and bachelor degrees are automatically enrolled in the qualification programs. In addition, Maaden also attracts graduates from diploma programs and secondary institutions, which are organized by Jubail Industrial College.

The graduate program involves a compensation package that aims to develop the skills of the individual. Besides, Maaden hopes to furnish the graduates with modern expertise and technical know-how on working various projects of the company across Saudi Arabia. Young graduates enjoy several non-monetary benefits while they work in the company. First, the recruits work under world-class trainers with unique expertise and technical experience while using cutting-edge technologies from the facilities. Second, the graduates are exposed to challenging projects that broaden their knowledge and expertise on the growing Maaden, enabling them to make significant contributions at the early stages. Finally, the company offers personal development programs that help the graduates to develop their leadership capabilities and interpersonal skills. In addition to non-monetary benefits, young Saudi graduates are paid a base salary of around 500 Saudi Arabia Rand (SAR) per month.

Snr. Expat Managers

            The growth of the economy and other industries in Saudi Arabia has continued to attract expatriates in the country. Other countries that are popular in attracting ex-pats are Qatar and the United Arab Emirates. Maaden offers opportunities to expatriate individuals, especially in senior roles in engineering, management, and finance roles. Several factors determine the compensation package of an ex-pat at Maaden, including qualifications, nationality, job title, and years of work experience (Forstenlechner, 2010). The base salary of senior ex-pat managers at the company ranges from 10,000 SR to 50,000 SR, which depends on the nature of the job. The pay is usually higher than in the ex-pat home countries taking care of the high cost of living in Saudi Arabia and other personal expenses.

On top of the base salary, senior ex-pat managers at Maaden have other benefits that add up to complete a lucrative compensation package. Some of the non-monetary benefits include relocation expenses that consist of all activities necessary for the employee’s initial move to Saudi Arabia. The package covers items such as visas, residence permits, flights, hotels, and work permits. Other allowances covered by the compensation are housing, automobile, and home travel costs. In addition, the benefits include a hardship allowance, which applies to employees working in difficult locations across Saudi Arabia. Maaden also adds an education allowance to its ex-pat managers since local government schools do not allow non-Saudi children in the institutions. The company covers all the expenses incurred by the ex-pats in meeting international school fees for their siblings.

Expat Laborers from Developing Nations

            Like other Saudi companies, the primary determinant of compensation packages to any ex-pat in Maaden is his or her nationality. Employees from developing countries in Asia and Africa have significantly lower salaries and benefits compared to others from wealthy nations. Maaden is committed to ensuring that all of its staff have maximum work satisfaction and maintain a healthy work-life balance. The nomination and remuneration committee at the company pays the ex-pat laborers from developing nations a competitive package above others in the industry. The base salary for these employees range from 500 SR to 5,000 SR and is heavily determined by the nature of the job and technical knowhow. The ex-pats have additional benefits such as hardship and housing allowance, allowing them to have a smooth experience in Saudi Arabia. The compensation package also depends on the length of the assignment and work permits for the employee. Maaden is a profitable company and usually offers all its employee’s performance bonuses to add to the overall compensation package.

References

Forstenlechner, I. (2010). Expats and citizens: managing diverse teams in the Middle East. Team Performance Management: An International Journal, 16(5/6), 237-241.

Maaden (n.d.). Annual reports. Maaden. Retrieved from https://www.maaden.com.sa/en/investor/report.

Stadler, K. (2011). Talent reviews: The key to effective succession management. Business Strategy Series, 12(5), 264-271.