LIMITATION

1.    Based on budget

Any decision regarding to improvement of compensation & benefits must get approval from Board Of Directors at Boustead and will be consult by Human Resources Department based on financial capacity.

2.    Bonus

In Boustead, bonus based on company performance on the profit, employee bonus paid out based on their KPI and KPI quota based on “Curved Bell”

3.    Perks / Claim / Allowances

Different position & different ranking will get the different perks. The higher position get better benefits eventhough they do less work rather than production worker.

4.    Medical benefits

Boustead applies minimum medical benefits to the staff such as Out Patient claim RM2000.00 per year. This will incurred some difficulties to the families that have a large family members. Same goes to single employees, they can’t cover their parents for the medical benefits, so it sort of unfairness practices. But this practices has been implemented for most of companies in Malaysia.

5.    Overtime

At Boustead, only non-executive level are qualified to claim overtime work due to nature of work. Engineers are consider executive & professional level, so the overtime did not paid due to their high salary given rather than non-exec.

6.    Salary based on qualification / working experience

The basic cash amount Boustead agreed to pay an employee is that worker's base or guaranteed pay. In most companies, base pay is determined by an employee’s job description and position. The company sets a minimum and maximum range that an employee for a specific position may earn for the year. This amount can increase, decrease or stay the same, depending on the employee’s performance.

7.    Training & Development

Training usually for all employees, but for the development, only selected talents will undergo this programmes because it is costly & for long term engagement for their career path.

8.    Security & work safe environment

Depends on the higher management approval & BHIC working culture. For the safety requirement they will apply the minimum requirement of OSH Act due to financial budget.

9.    Product-Cost Factor

All the aviation heavy duty equipment is very high cost for price and maintenance. So Boustead spent sum of cost on buying, servicing & maintenance & it will indrectly lesser down the profit

10. Non-financial

BHIC develops mentorship program for their talents. For example, Board of Engineers IR mentorship program and Project Management Professional Certificate program. However, its limited only for the sum of talent pool. Non executive rarely to join this programme.

11. Promotion

At Boustead, the top performers will be rewarded for a band range position. However, for the position promotion, it depends on the vacancy of the position and if the company opening the new section or department or enlarging their business such as opening new branches/ factory.

12. Permanent Position

Permanent position will be awarded to a contract worker if they performed well and by recommendation of their superior depends on vancancy of manpower requirement.. But it applies only for worker under term of “Contract of Employment” not for “Contract of Services”

13. Psychological and Social Factors

Sociologically and ethically, people feel that equal work should carry ‘equal wages’, that wages should be commensurate with their efforts, that they are not exploited and that no distinction is made on the basis of caste, colour, sex or religion. To satisfy the conditions of equity, fairness and justice, a management should take these factors into considerations.