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Apple Inc. is one of the largest companies with high brand value and is also regarded as the largest company in the technology sector. It was incorporated by Steve Jobs and his associates in 1976 as Apple Computer Company (LOC, 2022). The company is traded in public and has reported a revenue of $394 billion in 2022 with a Net Income of $99.80 billion (Apple, 2022). It has a large number of subsidiaries in the technology sector such as Apple Studios, Brean capital, Beats Electronics and etcetera (Investor Relations, 2022).
The company is headquartered in the United States and has operations at the global level with nearly 522 retail stores (Dazeninfo, 2023). The company has an extensive distribution system that provides electronic gadgets such as mobile phones, laptops, and other product line in the technological sector. The company is ranked to have the world's most valuable brand and was estimated at $1 trillion in 2018 and consequently 2$ trillion in August 2020 (CNBC, 2022).
Reward and remuneration is a comprehensive term to understand the employee-related policy in a corporate considering the pay/salary and other related benefits. Although researchers have miss understood compensation as the part of reward and remuneration policy. Rewards is a wider term to understand all those obligations that a company provides to its employee which includes financial and non-financial benefits as well as planning for the development of the employee pool (Martono et al., 2018). The latter part also includes long-term planning to enhance the skills and experience of the employee. This part of remuneration which is directly associated with performance is also known as salary and falls under the head of compensation. Reward and remuneration start with establishing the pay structure of the employee (Bussin and Christos, 2020).
Apple Inc., being a global company has designed a comprehensive plan for its employee remuneration policy which reduces discrimination and also adopts domestic laws and jurisdictions. There is a strong influence on the political and legal structure of the country in designing the employee compensation policies and therefore Apple Inc. has taken utmost care to develop the remuneration policies and reward system that not only benefits the employee but also enhances long-term benefits to the company (Lewis et al., 2016).
The remuneration policy is a vital guideline that an organization plans to compensate its employee for their performance. There are various methodologies to define the remuneration of an employee either based on the time spend on the job or tasks defined by the management. The compensation policy includes the basic salary or the pay along with benefits. These benefits can include incentives, health insurance, annual bonus, and other additional perks of the job (Milkovich et al., 2014).
Apple Inc. being a technological company has a large number of technical employees that include software engineers, data analysts, and allied domain workers. There are also administrative and other jobs such as sales of the product, logistics, production etcetera. It has been reported that the average salary ranges from $10 per hour to $68 per hour for various posts and positions within the company at the global level (Macrumors, 2022).
The salaries and compensation or the base pay are decided based on the reward and remuneration policy of the company. Considering the operations of Apple Inc. at the global level, there are numerous models of cash compensation adopted by the company. There are base salaries that are adopted by the company to compensate the employees and there are performance-based cash bonuses that have been established by the compensation committee at Apple Inc. to increase the effectiveness of employee performance. Motivation which is an intrinsic factor under the purview of behavioural-Human Resource Management is also recognized by the management of Apple Inc. when in 2015 free equity shares or Restricted Stock Units were granted to its employee besides the success of the organizational performance (SVBJ 2015). At the global level the company has more than 132,000 employees and a uniform policy provides guidance to draft remuneration and reward policies in each of the countries where Apple Inc. has its operations (Macrumors, 2018).
Apple Inc. believes that the best way to attract the best talent across the globe as well as to undertake the development of these talents and retain these professionals' performance-based compensation is the primary tool of the reward and remuneration policy. The company tracks and monitors individual performance including a strategic business unit performance at the country level to understand the effectiveness of the employees. There are periodic incentive policies followed by Apple Inc. to compensate the individual performance. Short-term incentive compensation and annual promotions along with annual merit are three dimensions of performance-based compensation followed at Apple Inc. There is also a provision of long-term incentive composition which include annual bonus, annual trips as well an employee development program.
Employee development is a part of succession planning which is primarily Strategic Human Resource Management (SHRM) or at large HRD. The latter concept is an organizational approach towards leveraging its workforce to meet the future planning of the organization. Apple Inc. takes utmost care to attract and retain the best talent while hiring. The process of focusing on the expertise and competence of the employee is not restricted at the stage of hiring but future planning of engaging the employee for better management and developing a pool of skills within the organization is continuously developed.
Apple Inc. conducts workshops and employee training for in-house as well as cross-management expertise. The company considers future managers require knowledge of all the domains of the business and therefore lateral transfers and promotional transferred are planned at the executive as well as the lower level.
The company has recently dedicated Supplier Employed Development Fund which is estimated at around $50 million and is aimed to provide new learning opportunities for its workforce. These include certification of technical expertise as well as leadership training (Apple, 2022).
Comparably (2022) reports a "C” rating that was conducted by an in-house survey within Apple Inc. to understand the work-life balance. The employees had rated that 50% of its workforce work less than 8 hours while only 10% or working longer than 12 hours. Burnout feeling and work-life balance as positive in this survey. Although a new rating was conducted which does not have Apple Inc. in the top 10 companies considered the best working place which includes reward and remuneration as well as focus on work-life balance.
One of the key expenses that an employee has to undertake is commuting to his or her office. Apple Inc. tries to benefit its employee by providing commuting benefits that not only are concerned with the employee but also with the environment. Cycle to work scheme is a complementary service by the company for its employee by providing free cycles and stands within the campus as well as to his/her home. There are also discounts on public transport charges allotted to the employees. Commuting loans are devised to provide public transport or parking fees to support the employees to focus on less polluting transport as well as become a part of the remuneration policy (Caboodle, 2019).
There are special incentives for those who dedicate their weekends or are working at night shift. Apple Inc. in the USA has tried to provide free food or meal through its developed cafeteria which is available onsite. The concern is that an employee who goes the extra mile should be essentially rewarded (Insider, 2018).
In-house discounts on Apple Inc.’s products for their use and their families are one of the key features that are part of the reward and remuneration policy. Apple Inc. focuses on providing discounted rates on mobile phones and laptops as well as other technology products that are sold and manufactured by Apple Inc. (Trivia, 2022).
One of the key benefits that an Apple Inc. employee gets is stock purchase options at discounted rates. ESOP or employee stock options are easily part of compensation against salaries (Forbes, 2019). Parenting leaves as well as maternal leaves are among the legally provided benefits to the employee in the majority of the countries where Apple Inc. is working. However, Apple Inc. focuses on providing easy options to avail these leaves to all its employee. A new mother receives a total of 18 weeks of maternity leave which includes 14 weeks of leaves and four weeks before giving birth. There is also a provision of additional 6 weeks to the mother which can be unpaid leave (Fastcompany, 2019).
One of the sections of the reward policy is the retirement plan and Apple Inc. offers a cumulative of 50% to match up to 6% of the salary. This benefits employees to plan for their future post-retirement. Recreational benefits include parties and weekend events planned within the company. Apple Inc.'s famous beer bash is a regularly planned event where the workers enjoy free food and drinks often with celebrity cameos.
Apple Inc. has been considerate of the health and well-being of its employees. There are provisions in the reward and remuneration policy to consider various individual works that are dedicated to health and well-being. Insurance is mandatory in many of the countries where Apple Inc. has been operating. However, the company follows complementary insurance for all employees by third-party agencies to cover the life and health insurance benefits which includes the basic OPD and other health-related expenses.
The employee assistance program is another segment in health and well-being focus along with insurance that is being offered to the employees. Comprehensive group insurance or individual insurance is attached to the salary package to not only attract the employee's compensation policy but also consider the concern of health and well-being. Employee assistance program has been popular among employers and Apple Inc. has been Pioneer in designing and implementing such policies at the global level. Mental health conditions are one of the focus areas of the health and well-being focus committee and then there is confidential support to such employees. There has been a report on gym fees discount for Apple Inc.’s employees (Apple, n.d.).
Apart from generous medical and dental insurance package, health and well-being is the third dimension that is probably taken care of by the company. Apple Inc. has set up centers allied with the organization to offer health and wellness benefits such as personal trainers, physiotherapists, dietitians, and gym trainers.
Diversity and inclusion have been popularly adopted by multinational companies across the world. Apple Inc. has a comprehensive diversity and inclusion policy that is not only considered for its marketing and sales but also the internal employee workforce. More than 150,000 employees at the global level are hired and maintained. To understand the effectiveness of its reward and remuneration policy, representation provides a clear picture (Apple, n.d.).
The current workforce in the United States has been strictly following the Inclusion and Diversity policy. The company reports 50% of its workforce comprises under-represented communities. The company also reports that almost half of its employees are women considering open leadership roles at the global level (Apple, n.d.).
On the other hand, Open-research and development leadership roles have a share of 34% considering women's employment. The under-represented community at Apple Inc. within the USA has a share of 60% considering Open leadership roles. All the estimates depict inclusive leadership planning by Apple Inc (Apple, n.d.).
Global female representation at Apple Inc. was around 30% in 2014 and has increased to 35% in 2021. Gender discrimination has been a severe issue faced by the corporate segment and reported to degrade society's status. However, Apple Inc. has not only planned at the departmental level but also to engage the global workforce towards women empowerment.
Similarly, the under-represented community ratio has increased from 44% of the employees in 2014 to 50% in 2021 (Apple, n.d.).
Retail leadership roles are usually a distinct and tough task but 58% of the positions at Apple Inc. are held by women as reported in January 2021 (Apple, n.d.).
Human resource strategy is a key component that predicts or influences organizational performance. Technology and other capital resources are essential for running the business, but human resource experts are vital to leverage the effectiveness or enhance the outcomes. Therefore, corporations like Apple Inc. usually develop a comprehensive HR strategy to focus on delivering outcomes from an employee to the department unit and eventually increase organizational performance (Hailey et al., 2015).
The business environment is dynamic that has intense competition and the influence of external factors that are beyond our control. Therefore, organizational expertise that is driven by employees not only provides benefits to the organization but also cope with the severe effect of environmental issues (Hamukwaya and Yazdanifard, 2014). HR has emphasized investing in human capital at Apple inc. with creativity and innovation are key concepts that impact organizational performance.
The companies reported having 40% more productive employees than any average company at the global level. The company has also reported that its 600 engineers are equivalent to 10,000 Microsoft engineers for a considerable number of software-related jobs (Fastcompany, 2017). Apple Inc. aims to recruit the best-minded and skilled employees to attain success at the task or the job. There are not only cumbersome recruitment criteria but also 360-degree evaluations are periodically planned to enhance the skills and innovation of the employees.
The hiring policy aims to attract diversity in talents, expertise, innovation, skills, and an inclusive approach. Self-awareness programs are also part of employee development plans that eventually develops their workforce experts and skill pool. Studies have reported the agility of human resource management is one of the key factors that has enhanced organizational performance to build a global brand like Apple Inc.
The company focuses to provide a conducive and proper environment within the organization which includes code and conduct guidelines as well as healthy relationships within the hierarchy. The culture at Apple Inc. also focuses on Inclusive and Diversity to provide ample opportunity to all its employees. The environment within the company is monitored by the human resource department to leverage employee performance. Degrading competition and discrimination are strictly monitored to develop a proper culture within the organization (Grove, n.d.).
The company not only follows finding the right and talented candidate but also skills like proper verbal communication, managerial skills, technical skills, and creativity are specifically considered when hiring a new employee at Apple Inc. The company provides ample opportunity at a global scale to attract a large number of employees to apply for the job.
There are career options within the organization that strictly monitors innovation and creative thinking Apple Inc. Out-of-box thinking and conducting brainstorming sessions and workshops are continuously conducted to understand the employee’s thinking ability (WDN, n.d.).
All the financial reports are annually maintained and disseminated throughout the organization. Apple Inc. also follows quarterly and monthly MIS reports of the respective department based on their performance. Organizational performances are rooted in employee performance and cumulatively considered as a unit or departmental performance.
Apple Inc. follows performance management at a comprehensive level to understand its employee’s performance (Carneiro-da-Cunha et al., 2016). Financial numbers such as Net Sales and Net Profit along with revenues and operating expenses are some of the key outcomes but performance management is an inside-out approach to understanding the organization’s status.
Performance management at Apple Inc. includes various methodologies such as 360-annual performance reviews, feedback from managers, and cascading goals.
Apple Inc. has extensively designed its HR policy however being a large organization there exist several issues that are not covered. I have recognized some of the issues that can be considered by the company to increase its employee engagement and performance.
Reports have accused Apple Inc. of inappropriate handling of misconduct issues regarding gender discrimination and similar incidents. There have been 6 instances where the women raised their voices and complaints as bad team members resulting in their departures. Apple Inc. should devise a root-level strategy to understand such issues happening within the team and rectify this issue as a priority. This report is a clear indication of hostile human resource management which is a threat to better employees’ policy (HRD, 2022).
The human resource management-based policies are although generalized for Apple Inc. and are considered a guideline principle for department-wise or country-wise HR policies. I have noticed that the Apple Inc. headquarters in the USA has designed specifically some of the benefits and rewards that are not part of policies in other countries like India and China. There is no issue of uniformity, but comparative dissonance may have dissatisfaction among employees at the global level.
The principal reward and remuneration policy should be the same throughout its global operation. This should be ensured by drafting a detailed plan of implementation considering the legal and jurisdiction of each country.
Recently introduced flexible work-from-home option which is part of human resource policy was deliberately revoked for the employees to come back and work. There will be instances where Apple Inc. was accused of reducing wages or compensation, but the employee did not return to the office. Forbes (2022) has enlisted legal clauses and provisions where Apple Inc. cannot force it is an employee to not considered flexible work-from-home options.
The recent change in the work-from-home module has also realized that effectiveness cannot be attributed to the employees who were only working from the office. Productivity has increased for the employees who were working from home, but less recognition has often demotivated them.
I would suggest the company should conduct an organization-wide survey considering the productivity and effectiveness and can re-consider decisions regarding work-from-home employees.
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