Employee satisfaction on Aarong's compensation
AuthorDrong, Monjori Monica
MetadataShow full item record
Aarong has established in 1978 with the visionary goal to change the lives of deprived artisans and underprivileged rural women by enlivening and encouraging their arts and crafts. Aarong represents the global village even the name „Aarong‟ means „a village fair or market‟ in Bengali. The products of Aarong have the essence of Bangladeshi culture and beauty into each and every piece. So the organization has named „Aarong‟. Aarong was established to help the marginalized people of Bangladesh. The reason is most of the people in Bangladesh live in the rural areas. They are the most disadvantageous and marginalized people and Aarong has developed a ground for these people. According to this organization, lack of working capital, marketing support and opportunity for skills development are the three main obstacles for gainful employment in the rural areas. As it is a social enterprise, it provides some services to the low income and marginalized people in the rural areas to overcome the three main obstacles. Besides Aarong is protecting and promoting Bangladeshi product and designs which contain the essence of Bangladeshi culture and beauty into every piece and pioneer in promoting the fashion industry of Bangladesh. At the beginning their target buyers were a few merchants of Dhaka. Soon enough, Aarong started to grow and spread throughout the whole country, from one single shop to the biggest retail chains of Bangladesh. Now Aarong has more than 100 product lines. Aarong provides the local and international public opportunity of owning a Bangladeshi handcrafted product. At present Aarong have 12 domestic outlets in Dhaka, Chittagong, Sylhet, Moulvibazar, and Khulna and 1 franchise outlet in London. Since 1984 this organization is exporting their products in Italy, U.K., Spain, Canada, Japan and other countries. The target customers of Aarong are middle and higher socio-economic classes, expatriates, foreign visitors (tourists and business travelers) and Bangladeshis living abroad. Though they have more than 100 product lines, maximum profit is earned form women‟s wear, men‟s wear, children‟s wear, jewellery, leather, household (textile, non-textile) and others. Others includes food, herbal products, stationary, toys and furniture. Day-by-day this organization‟s sales are increasing as well as profit. As Aarong is the leading fashion house of Bangladesh, for conducting their business operations perfectly they need qualified staffs. This organization has a Human Resource Department which ensures inflow of qualified human resources in the organization. The core activities of HR department are recruitment and selection of staffs, transfer of staffs, maintaining attendance of staffs, leave management, performance appraisal, confirmation of jobs, job separation, grievance management, approve loan, arranging travel authorization, providing allowances, arranging temporary staffs salary, preparing visiting card and maintaining procedures of Aarong health care service etc. I did my internship in the HR department of Aarong. My duties & responsibilities as an internee was screening CV‟s, short listing, inviting candidates to attend interview session, checking out documents of selected candidates, checking out performance appraisal forms, preparing appointment letters for newly joined staffs, preparing personal employee files, preparing confirmation letters, preparing transfer letters, preparing promotion letters and preparing experience letters etc. Aarong provides a wide range of staff benefits to their employees. So I became interested to know about „Employee Satisfaction on Aarong’s Compensation’. While going to study about employee satisfaction on Aarong‟s compensation it was found that only 55% staffs of Aarong are satisfied with their salary. 45% staffs are dissatisfied. They think that they should be paid more. In addition 45% of staffs said that compensation benefit of Aarong is higher than any other same category organization. 30% of staffs said that it is almost similar and 20% said that it is lower than other. Rest 5% staffs confessed that they have no idea whether it is less, higher or similar to other same category organization. 85% staffs of Aarong are satisfied with leave procedure. 15% are dissatisfied with leave benefit. Moreover, 55% staffs of Aarong think that overall compensation benefit of Aarong is good. 15% think that it is excellent. 5% staffs think that it is bad. 30% of staffs said that Aarong should increase salary. 20% thinks that it should provide lunch for staffs. 20% of staffs think that it should provide bonus on performance. 15% thinks that Aarong should increase incentive. 5% staffs of Aarong said that Aarong should share some portion of profit with staffs. 5% said that they need more food allowance while they are visiting outside for official purpose. 5% of staffs said that they need more night haltage while they stay outside for official purpose. The HR department of Aarong ensures attract, attain and retain of talent staffs within the organization and helps in placing right people, at the right place, at the right time doing the right job. Talent and qualified staffs are loyal to the Aarong for its best compensation package. Majority of staffs of Aarong are satisfied with their overall compensation benefits. However competitors can attract talents of Aarong through offering more attractive compensation benefits. For this reason Aarong should be more concern about it and should increase compensation benefits of staffs.