Vodafone offers competitive and fair rates of pay and benefits to attract and retain the best employees. Competitive rates of pay and benefits vary in each local market where we operate. We want to ensure that our people feel their efforts are recognised and their rewards are connected with their performance.
We monitor employee views of the compensation packages we offer through our annual Vodafone People Survey (see performance 2007/08).
Rewarding performance
We are implementing a range of initiatives that reward our employees based on their contribution to the success of the business. The annual bonus plan for all our global managers, which covers approximately 4,500 employees, includes an individual performance element measured over the year and assessed through our global performance dialogue process. Most of our local operating companies offer employees not covered by the global bonus plan the opportunity to participate in local plans that reward their performance.
Our Global Long Term Incentive (GLTI) Plan awards shares based on an assessment of an individual’s potential, future performance and their business criticality in supporting the delivery of Vodafone’s strategy.
Share plans
We offer a variety of share plans as an incentive for our employees to stay at Vodafone. Our global AllShares Plan is designed to ensure everyone in the Company has a stake in our success. All permanent employees are made an award of shares on the condition that they remain at Vodafone for a further two years.
Our communications with employees about share plans have been recognised externally. Vodafone received the ifs ProShare award for most effective communication of an employee share plan in 2007, and awards from the Global Equity Organisation for best share plan communications in 2006 and 2007.
Benefits
Each of our local operating companies offers a competitive range of benefits for employees. The benefits packages offered are determined by local legislative and tax requirements and industry benchmarks. Depending on the location, we offer benefits such as life assurance, accident insurance, private medical insurance, subsidised mobile phones, and service and retirement benefits.
Retirement benefits are provided through a variety of arrangements, including defined benefit and defined contribution schemes. These vary depending on the conditions and practices in the countries concerned such as local market practice, taxation, legislation and the quality of the state’s pension.
For more information on our pension plans, see our Annual Report.