1. Take Off Program
Dr. Guido Gianasso
Vice President, Human Capital
Take Off Program April 2012

2. Rewards
Compensation:
Is it important to motivate and
retain employees?
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3. Factors affecting job attitudes as reported in 12
investigations
Factors characterizing 1,844 events on
the job led to extreme dissatisfactions
Factors characterizing 1,753 events on the
job that led to extreme satisfaction
growth
Advancement
Responsibility
Work itself
Recognition
Achievement
Security
Status
Relationship with Subordinates
Personal life
Relationship with peers
Salary
Work conditions
Relationship with supervisor
Supervision
Company policy and
administration
-10-20-30-40 0 10 20 30 40 50

4. Motivation versus hygiene factors
Motivation factors
Factors related to the unique
human characteristic to
achieved and, through
achievement, to experience
psychological growth
Hygiene factors
Factors related to the built – in
drives conditioned to the basic
biological needs (hunger-
>money->drive)
Stimuli for the growth needs
are the job content
Stimuli inducing pain –
avoidance behavior are
in the job environment
Extrinsic to the job
Company
administration, supervision,
remuneration, work / life
balance
Intrinsic to the job
Achievement, work
itself, responsibility, growth
Needs
Stimuli

5. Factors which motivate and retain
employees
Work itself
Recognition and promotion
opportunities
Personal growth and learning
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6. Compensation and Administration
 “Hygiene” factors
If not properly managed – strong
demotivational factors
They do not in themselves ensure
motivation and commitment
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7. Remuneration – a hygiene factor
Herzberg, Schein
 If the employee is paid below market
average, he/she will be demotivated
But
 A good remuneration is not in itself sufficient
to motivate the employee
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8. If you were the CEO,
what factors would you
consider in designing a
compensation system?
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9. Five Objectives Of A
Remuneration System
Strengthening corporate
culture and supporting
strategic objectives
Competitiveness
on local labor
market
Cost control
(income / cost ratio)
Internal equity Employee motivation

10. Evolution of
Compensation
Systems
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11. Evolution in Compensation Systems
 Salary scales to broad bands
 Salary increases based on seniority to merit-
based increases
 Pay for performance - incentive
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12. http://icsc.un.org

13. WORLD BANK GROUP NET SALARY STRUCTURE
Effective May 1, 1996
Grade Minimum Midpoint Maximum
29 146,520 161,190 175,860
28 127,950 143,920 159,890
27 115,280 129,670 144,060
26 96,190 117,880 139,570
25 84,190 105,240 126,290
24 72,360 93,970 115,580
23 64,600 83,890 103,180
22 59,920 74,900 89,680
21 53,510 66,890 80,270
20 47,780 59,720 71,660
19 42,650 53,310 63,970
18 38,090 47,610 57,130
17 32,730 42,500 52,270
16 29,210 37,930 46,650
15 26,100 33,900 41,700
14 23,290 30,250 37,210
13 20,790 27,000 33,210
12 19,290 24,110 28,930
11 17,220 21,530 25,840

14. 2000 Salary Scale
Canada
Effective from January 1, 2000
Annual Salaries in CAD
Grade Minimum Midpoint Maximum
1 21,800 25,640 30,770
2 24,880 29,260 35,120
3 28,380 33,380 40,060
4 32,400 38,110 45,740
5 36,980 43,500 52,200
6 43,160 50,770 60,930
7 54,560 64,180 77,020
8 63,720 74,960 89,960
9 70,050 87,560 109,450
10 81,810 102,260 127,830
11 95,560 119,440 149,300
12 111,610 139,510 174,390
13 130,360 162,950 203,690

15. IATA Salary Bands
A Support Staff
Entry to Advance
B Support supervisors
Highly Skilled Tech support
C Managers
Specialists – Level 1
D Assistant Directors
Specialists – Level 2
E Directors
F ExCom Members

16. IATA Compensation
Strategy
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17. Drivers: IATA Compensation Strategy
Based on Merit/Performance
Geared to
Market conditions
Favors
Lower-paid Employees

18. Applying the Compensation Strategy
Based on Merit/Performance
Rating on Performance Assessment
Geared to
Market conditions
Classification of
Country Category
Favors
Lower-paid Employees
Position on
Salary Band

19. IATA offices in 60 Countries
 Category A – high inflation/currency
devaluation
 Category B – salary structure not in line with
local market
 Category C – salary structure adequate
 Category D – salary structure
adequate, legal/contractual cost of living
adjustments
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20. 2012 “A” countries
 Across-the-board increase
 Effective 1 Jan 2012
 Based on a combination:
Actual inflation rate from IMF
Forecast inflation rate from IMF
Forecast market salary increases from
specialist international compensation
consulting firm
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21. Applying the Compensation Strategy
Based on Merit/Performance
Rating on Performance Assessment
Geared to
Market conditions
Classification of
Country Category
Favours
Lower-paid Employees
Position on
Salary Band

22. 22
Performance-based salary increases
 Line supervisors will be able to grant salary increases within the
following ranges and pre-determined budget at regional and
divisional level:
Country
Category
A B+ B C
A 3%-9% 0%-6% 0%-4% 0%
B 3%-9% 0%-6% 0%-4% 0%
C 3%-9% 0%-6% 0%-4% 0%
D 1%-7% 0%-4% 0%-3% 0%
Performance Appraisal Rating

23. 23
Extraordinary Performance Bonuses
Recognizing individuals with unique contributions
5% to 10% of annual base salary within pre-determined
budget
Applicable only for individuals not covered by other programs
Sales Incentive program for field sales
Variable Compensation program for Country Managers

24. Other Bonus Programs
Variable Compensation Program
Directors
Country Managers
Sales Incentive Plan
Sales Team
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25. 25
 For promotions
 Confirmed throughout the year
 Salary changes will be effective at date of promotion
 For other adjustments (such as rebanding of positions,
salary realignments)
 Confirmed once per year (1 April)
 Salary changes will be effective on that date
Promotions and adjustments

26. Employee Recognition Programs
 Individual and team awards for special
achievement
 Four levels
 Platinum
 Gold
 Silver
 Bronze
 More information and nomination forms on
Intranet
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27. Rewards
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