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Almarai’s Compensation Plan

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Almarai’s Compensation Plan

Almarai Company is a food company, and among the largest enterprise in the Middle

East, that deals with dairy products. It was started in 1977 to reduce the gap in the dairy

product that existed in the KSA market and achieve a quality product. The company deals

with different products such as bakery, beverages like juices and yogurts, and poultry

particularly; it is known for marketing its products under the Almarai brand (Almeria, 2022).

This enables the company to gain a larger market share and customer trust. Additionally, it

has an arable farm in Argentina and distributes its products to the Gulf Cooperation Council

(GCC). Specifically, product diversification aided in the transformation of Almarai into a

food company.

A compensation structure is a systematically developed plan that reveals an

organization's reimbursement philosophy. A compensation plan usually takes into

consideration of employees' wages and salaries and the benefits they should receive upon

completion of a particular task or job (Singh, & Hagahmoodi, 2017). Depending on the size

of the organization, a compensation plan can include bonuses and incentives to motivate

employees to work within or beyond their limits. Almarai's compensation plan includes

bonuses and incentives, wages, a competitive package, retirement benefits, and health

insurance.

Salary and wages are among the single largest compensation package that the

company offers. However, it varies depending on individual experience and skills and

whether the individual is a potential or current employee. Bonuses are essential in the

company compensation plan since it is one of the ways management can provide

performance incentives. Mainly, bonuses and incentives are usually offered annually through

profit-sharing plans since they are associated with success (Singh, & Hagahmoodi, 2017).
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Additionally, Almarai also offers a competitive package such as a stock grant to its

employees to attract and retain them. In most cases, competitive packages act as long-term

incentives. Health insurance and retirement benefits motivate employees as they offer a great

value to them since they save employees money and provide them with peace of mind.
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References

Almeria. (2022). Almería: Agriculture and Agribusiness in progress Articles ISAM

Education. ISAM International School of Agri Management. Retrieved 27 April
2022, from https://isam.education/en/almeria-agriculture-and-agribusiness-in-
progress/.
 https://www.almarai.com/en/)),
Singh, A., & Hagahmoodi, S. O. (2017). Performance Measurement of Almarai Products and
Customer Satisfaction. International Journal of Management Science, 4(1), 1-12.