Project Report on HR Strategy of Swisscom (Switzerland)
Subject: Business, Management

This Project Report has done by few NSU Students.  


  Swisscom is Switzerland’s leading telecoms provider. Its headquarters are located at Worblaufen near Bern. The Swiss confederation owns 56.94 percent of Swisscom. It has 6.2 million mobile customers, 791,000 Swisscom TV customers and around 1.7 million broadband connections (retail). In 2012, the company’s 19,514 employees (full time equivalents) generated revenues of CHF 11.384 billion. Some 907 young people completed an apprenticeship at Swisscom in IT, telematics, mediamatics, retail sales, commerce, and customer dialogue. Swisscom is providing Fixedline & Mobile Telephony, Fixedline & Mobile Internet, Digital Television and IT Services & Networking Solutions.   Swisscom has a presence throughout Switzerland and offers a full range of products and services for mobile, landline and IP-based voice and data communication. Massive investments in network infrastructure ensure that this will remain the case in the future. With Swisscom TV, customers too have become increasingly aware of the trend towards multimedia. Swisscom also offers services for IT infrastructure outsourcing as well as the management of communications infrastructures.   Swisscom’s business strategy is geared to the long term and takes into consideration of economic, ecological and social aspects. Sustainable management and long term responsibility are firmly enshrined in Swisscom’s corporate culture. Swisscom owes its business success to the dedication and commitment of its 19,000-strong workforce, which continually strives to develop new solutions for customers and the information society. Major investments in network infrastructure ensure that Swisscom will continue to satisfy customer needs well into the future.     The former state-owned PTT (Post, Telegraph, Telephone, founded 1852) was privatized in stages from 1988 onwards and became a public limited company with special legal status in October 1998. The Swiss Confederation currently holds 56.94% of the share capital. The Telecommunications Companies Act limits outside participation to 49.9% of the share capital. In its 5 April 2006 message, the Federal Council of Switzerland proposed to Parliament that Swisscom should be completely privatized and that the Swiss Confederation should sell its shares in stages. On 10 May 2006, the National Council declined to support the proposal. On 20 May 2006 the Advisory Committee of the Council of States advised the Council of States to endorse the proposal – but only so that it could be referred back to the Federal Council for revision. Swisscom announced its new visual identity on 14 December 2007. The previous sub-brands of Swisscom Fixnet, Swisscom Mobile and Swisscom Solutions ceased to exist on 1 January 2008. Part of the new identity includes  a redesigned logo with a moving picture element – an innovation for Switzerland and the industry.   Swisscom offers customers a full complement of telecoms products and services for fixed-line telephony, broadband, mobile communications and digital television, and is also active in IT infrastructure outsourcing and communications infrastructure management for business customers. In keeping with its mandate to provide basic service provision throughout the country, Swisscom also maintains a presence in the more sparsely populated regions of Switzerland. Swisscom’s evolution to a multimedia company is reflected in the wide range of products and services it offers through multiple sales channels. Customers can check out products and services first hand and receive comprehensive advice in Swisscom’s own shops as well as in numerous partner outlets. They can also obtain product information and order products and services at anytime online via the Swisscom website. The digital customer centre, which is also accessible online, allows customers to manage their personal details, subscriptions and bills on their own. Swisscom can also be reached 24/7 via a free hotline.   It is therefore an important principle of Swisscom, the public and customers to be treated equally. For identifying existing and future interests of groups there is a separate platform at Swisscom: Swiss community. This serves to raise awareness of Swisscom top management for the special social responsibility of the company, to promote dialogue and mutual understanding between stakeholders and Swisscom and the development of initiatives the special responsibility of Swisscom relation to the public accounting carry voltage.

Recruiting Techniques

  Managing people at work and control of human activities in employment is a function that must be performed in all societies. It is essential in every type of employment for every occupation and every type of employed manpower. Manpower management is essential in government as well as private employment under socialism or communication in small business and in large. Recruitment, as a human resource management function, is one of the activities that impact most critically on the performance of an organization. While it is understood and accepted that poor recruitment decisions continue to affect organizational performance and limit goal achievement, it is taking a long time for public service agencies in many jurisdictions to identify and implement new, effective hiring strategies.   Recruitment is a process which provides the organization with a pool of potentially qualified job candidates from which judicious selection can be made to fill vacancies. Successful recruitment begins with proper employment planning and forecasting. In this phase of the staffing process, an organization formulates plans to fill or eliminate future job openings based on an analysis of future needs, the talent available within and outside of the organization, and the current and anticipated resources that can be expended to attract and retain such talent. So, Recruitment is a set of activities designed to attract a qualified pool of job applicants to an organization.  Three steps in a typical recruitment process are:

  1. Advertisement of a job vacancy,
  2. Preliminary contact with potential job candidates, and
  3. Initial screening to create a pool of qualified applicants.

External Recruitment: The recruiting that takes place on college campuses is one example of external recruitment, in which job candidates are sought from outside the hiring organization. Websites, newspapers, employment agencies, colleges, technical training centers, personal contacts, walk-ins, employee referral, and even personals in competing organization are all sources of external recruits. External sources lie outside an organization. Here the organization can have the services of: (a) Employees working in other organizations; (b) Jobs aspirants registered with employment exchanges; (c) Students from reputed educational institutions; (d) Candidates referred by unions, friends, relatives and existing employees; (e) Candidates forwarded by search firms and contractors; (f) Candidates responding to the advertisements, issued by the organization; (g) Unsolicited applications/ walk-ins. Internal Recruitment: Internal Recruitment seeks applicants from inside the organization. Persons who are already working in an organization constitute the ‘internalsources’. Retrenched employees, retired employees, dependents of deceased employees may also constitute the internal sources. When ever any vacancy arises, someone from within the organization is upgraded, transferred, promoted or even demoted. Internal Recruitment methods are promotions and transfer, job posting, employee referral. Promotion is a method of filling vacancies from internal resources of the company to achieve optimum utilization of a staff member’s skills and talents. Transfer is the permanent lateral movement of a staff member from a position in one job class to a position in another job class of increased responsibility or complexity of duties and in a higher salary range. Job Posting is an arrangement in which a firm internally posts a list of open positions (with their descriptions and requirements) so that the existing employees who wish to move to different functional areas may apply. It is also known as job bidding. It helps the qualified employees working in the organization to scale new heights, instead of looking for better perspectives outside. It also helps organization to retain its experienced and promising employees. Employee referrals is a recruitment method in which the current employees are encouraged and rewarded for introducing suitable recruits from among the people they know. The logic behind employee referral is that “it takes one to know one”. Benefits of the method are quality candidates, cost saving, faster recruitment cycle and Incentives to current employees.   Recruitment Technique Swisscom: Swisscom offers employees a working environment that fosters their personal and professional development by setting them challenging tasks and allowing them to exercise responsibility. Swisscom follows both External and Internal Recruitment Process to recruit employee. Swisscom has a recruitment team.   In External Recruitment, it recruits new employees by offering job via website, which is also known as E-Recruitment. Candidates can apply by sign up on swisscom’s website. Swisscom offers 12 month long internship program, which is called by GET IN TOUCH trainee program.   Swisscom recruit new employees from interns. Swisscom offers job opportunity for newly graduated students. The clearly structured range of training programs not only provides you with insight into the various areas of Swisscom, it can also help you find out what would be best for employees. During a twelve-month period intern can prepare himself/herself for his/her professional future in a consistent, hands-on manner – which includes project work, workshops and the processing of real case studies together with other trainee colleagues. A mentor accompanies interns throughout the program and helps them to progress. The GET IN TOUCH trainee program lasts 12 months. The program focuses on project work, participation in workshops and handling a case study. This runs in parallel to the project work. A mentor guides you through the program.   In internal recruitment process Swisscom follows promotions, transfer and job posting methods.



Selection is choosing individuals to hire from a pool of qualified job applicants. Different types of positions require different kinds of selection techniques. Choosing the right techniques will help you to recruit the best person for the position. The selection techniques you choose will depend on the particular skills, attributes and knowledge required for the position. You must be able to match the selection method with the selection criteria that are keys to the position.   Steps in a typical selection process are: 1)      Completion of a formal application. 2)      Interview 3)      Testing 4)      Reference Checks 5)      Physical Examination 6)      Final Analysis     Formal Applications:   The application declares the individual as a job candidate and documents his or her background and qualifications. The personal resume is often included with the job application. This important document should accurately summarize a person’s special qualifications and accomplishments. A job application should exercise great care in preparing the resume for job searches; a recruiter should know how to screen resumes to make good selection decisions. Inviting applications by CV makes things easier for applicants, but the resulting tidal wave can be horrendous; trying to sort through a pile of CVs, all with different formats and with widely varying levels of presentation, can be extremely time consuming and can make it difficult to spot key information. Swisscom follow the regular procedure of Selection which starts with submitting formal application (including CV). Job seekers submit their CV on swisscom’s official website.             Interviews:   Interviews are times in the selection process when both the job applicant and the potential employer can learn a lot about one another. However, they can be difficult experiences for both parties. The skills, academic and family background, competencies and interests of the candidate are examined during preliminary interview. Preliminary interviews are less formalized and planned than the final interviews. The candidates are given a brief up about the company and the job profile; and it is also examined how much the candidate knows about the company. Preliminary interviews are also called screening interviews.   Many people dislike the interview process, both as an interviewee and an interviewer. Although the interview is the most popular form of selection, it is also the least useful in predicting the performance of candidates on the job. Much of the reason that interviews are such a bad predictor is because interviewers simply don’t like being in a face-to-face situation where people are asking them for something, or because they have a total misperception of the interview process. Interviews are none the less an important method of exchanging information, but only if they are approached in the right way. In regards to swisscom, they prefer face-to-face interview. There are some records of taking telephone interview too.       Employment Test:   Employment test is written, oral or on-the-job testing to determine whether a job applicant is suitable for a position. Employers using employment testing believe certain test scores indicate the level of job performance an individual would provide as an employee. In Swisscom, After screening the applications, eligible candidates are given tests to determine skill and abilities in terms of the requirements of the job. For instance, the job requires a minimum typing speed of 40 words per minute; a test is given to see whether the candidates applying for the job have the required speed. Passing the test by a candidate does not mean that he will be employed. It implies that all those who have passed the test are qualified for further screening, and those who have failed are not to be considered. Tests which the candidates are to take differ according to the nature of the job. To judge the speed and accuracy of typing, candidates may be given a standard paragraph to type. Similarly, an auto mechanic may be asked to replace a piston. This is known as skill or trade test. Skill or trade test is also known as performance test. Intelligence test may be given for clerical jobs. It may include test of general knowledge and general awareness, test on arithmetic problems, and test of reasoning power and vocabulary. For supervisory and managerial jobs tests are given to find out the candidate’s personality, decision making abilities, etc.   Reference Checks: Reference checking is one of the most effective methods of assessing past behavior. Talk to a range of people who know the candidate’s work, e.g. managers, peers, subordinates and clients. Candidates who are to be considered as an employee in Swisscom must have other qualitative like balanced temperament, honesty, loyalty, etc. These qualities cannot be judged on the basis of any test. Therefore, information is obtained and verified from the heads of educational institutions where the candidates have studied, or from the persons whose names are given by the candidates, or from the previous employers.   Medical Examinations:   Candidates finally selected for the job are asked to undergo medical Examination and get certificates of medical fitness. The purpose of the medical examination is to see whether the selected candidates are physically fit for job. It also points out whether employees suffer from illness which can be cured before hiring them e.g. poor eyesight. Such a step in the selection procedure is essential for certain types of jobs as in the case of police and army, where physical fitness is very important. For certain categories of jobs like the job of driver, a proper eye-sight is very essential. Swisscom take physical exam of the selected candidates.   Analysis and Final Decisions:   The best selection decisions are most likely to be those involving extensive consultation among tan applicant, future manager or team leader, and new co-workers, as well as the human resource staff. Importantly, the emphasis n selection should focus on the person’s capacity to perform well. Just as a “good fit” can produce long term advantage, a “bad fit” can be the source of many long term problems. The candidates who pass the medical & fulfill all requirements, especially reference are offered to negotiate about salaries and bonus.   After negotiating the candidates who agreed with Swisscom get the offer letter and considered as an employee.

Orientation and Socialization

Having devoted the time and resources to compete for talent, the next step that HR practitioners face is to get new hires quickly up to speed. Retaining newcomers, however, poses a challenge, as most turnovers occurs during the first few months on the job. Because organizations have little opportunity to recoup the return on investment in new employees who quit, newcomer turnover is problematic and is therefore a concern of researchers and practitioners alike. While there is an expanded interest in predicting newcomer turnover at the selection process, research on this topic has generally focused on organizational socialization and how it is used to familiarize new hires with new roles and to retain these new organizational members. Regardless of the years of work experience that new employees have, knowing the technical and social aspects specific to the job and the company is essential to function in a new environment. Figure 1 summarizes what employees should learn and develop through socialization.

 Socialization refers to:
Performance proficiencyLearning and mastering the knowledge, skills and abilities to perform the required work task.
PeopleEstablishing successful and satisfying work relationships with organizational members.
PoliticsGaining information regarding formal and informal work relationships and power structures.
LanguageUnderstanding the profession’s technical language as well as acronyms, slang and jargon unique to the organization.
Organizational goals and valuesUnderstanding the rules or principles that maintain the integrity of the organization.
HistoryLearning the organization’s traditions, customs, myths, personal background of other members.
Source: Chao, G. T., O’Leary-Kelly, A. M., Wolf, S., Klein, H. J., & Gardner, P. D. (1994). Organizational socialization: Its content and consequences. Journal of Applied Psychology, 79, 5, 730-743.

    Orientation programs are designed to reduce the stress that employees feel when beginning a new job. Some benefits are: · Improves employee retention rate · Communicates to employees what is expected · Helps satisfy employee’s need to know about where he/she works · Increases employee commitment by introducing them to the company’s mission and        philosophy · Shows how individual jobs fit into overall company mission Swisscom can only achieve its strategic objectives by deploying its staff and management in the most effective way. In the year under review, Human Resources placed its priority on the development of senior management and on instilling a consistently customer-focused approach. Having the right people in the right place is becoming increasingly key to corporate success. In 2006, essential efficiency enhancements in our traditional core business resulted in a workforce reduction of 256 full-time jobs. Overall, however, the number of full-time positions rose from 16,088 to 17,068 due to acquisitions and job creation in expanding areas.   Swisscom’s consistent focus on customers, coupled with its concentration on its three strategic pillars “Maximize”, “Enlarge” and “Expand”, was communicated to employees by management at all levels. This direct transfer of knowledge was supported by written documentation, presentations and intranet platforms. Among senior management the priority was on managing cultural change and what is referred to as “disruptive change”, i.e. change that forces companies to radically revise their business model.


Training may be described as an Endeavour aimed to improve or develop additional competency or skills in an employee on the job one currently holds in order to increase the performance or productivity. Technically training involves change in attitude, skills or knowledge of a person with the resultant improvement in the behavior. For training to be effective it has to be a planned activity conducted after a thorough need analysis and target at certain competencies, most important it is to be conducted in a learning atmosphere. Typically organizations prepare their training calendars at the beginning of the financial year where training needs are identified for the employees. This need identification called as ‘training need analysis’ is a part of the performance appraisal process. After need analysis the number of training hours, along with the training intervention are decided and the same is spread strategically over the next year.   On the job training: The most frequently used method in smaller organizations that is on the job training. This method of training uses more knowledgeable, experienced and skilled employees, such as mangers, supervisors to give training to less knowledgeable, skilled, and experienced employees. On the job training can be delivered in classrooms as well. This type of training often takes place at the work place in informal manner. Some key points on the job Training on the job Training is characterized by following points • It is done on ad-hoc manner with no formal procedure, or content • At the start of training, or during the training, no specific goals or objectives are developed • Trainers usually have no formal qualification or training experience for training • Training is not carefully planned or prepared • The trainers are selected on the basis of technical expertise or area knowledge Formal on job training programs are quite different from informal On Job Training. These programs are carried out by identifying the employees who are having superior technical knowledge and can effectively use one-to-one interaction technique.

The procedure of formal on the job training program is:

  1. The participant observes a more experienced, knowledgeable, and skilled trainer (employee)
  2. The method, process, and techniques are well discussed before, during and after trainer has explained about performing the tasks
  3. When the trainee is prepared, the trainee starts performing on the work place
  4. The trainer provides continuing direction of work and feedback
  5. The trainee is given more and more work so that he accomplishes the job flawlessly

The three techniques for on the job development are:

Coaching: Coaching is one of the training methods, which is considered as a corrective method for inadequate performance. According to a survey conducted by International Coach Federation (ICF), more than 4,000 companies are using coach for their executives. These coaches are experts most of the time outside consultants.  

A coach is the best training plan for the CEO’s because

• It is one to one interaction • It can be done at the convenience of CEO • It can be done on phone, meetings, through e-mails, chat • It provides an opportunity to receive feedback from an expert • It helps in identifying weaknesses and focus on the area that needs improvement. This method best suits for the people at the top because if we see on emotional front, when a person reaches the top, he gets lonely and it becomes difficult to find someone to talk to. It helps in finding out the executive’s specific developmental needs. The needs can be identified through 60 degree performance reviews. Mentoring:

Mentoring is an ongoing relationship that is developed between a senior and junior employee. Mentoring provides guidance and clear understanding of how the organization goes to achieve its vision and mission to the junior employee. Job Rotation: For the executive, job rotation takes on different perspectives. The executive is usually not simply going to another department. In some vertically integrated organizations, for example, where the supplier is actually part of same organization or subsidiary, job rotation might be to the supplier to see how the business operates from the supplier point of view.

Off The Job Training: In off the job training the trainee learns outside the job and involves him in full time learning. Various off the job training are explained in detail below: 1. Lecture In lecture method trainers used to communicate with spoken words which they want the trainees to learn, it is primarily one way communication of learned capabilities from trainer to audience. 2. Audio Visual Techniques Audio visual instruction includes overheads, slides and video. Video can be used for improving communication skills and customer service skills; it can also illustrate how procedures can be followed. 3. Simulations It represents real life situations regarding trainees decisions resulting in outcomes that reflects what would happen if they were on the job. 4. Case Studies This method involves studying cases from all perspectives. Trainers develop a habit of looking at problems from various perspectives and hence their decisions as managers will be more realistic and based on sound study and analysis.   5. Role Play The trainees act out a given role as they would in a stage play. Role players are informed of a situation about the respective roles that they have to play. Role playing basically covers topics such as employee-employer relationships, hiring, firing, conducting a post-appraisal interview.


Lots of time training is confused with development, both is different in certain respects yet components of the same system. Development implies opportunities created to help employees grow. It is more of long term or futuristic in nature as opposed to training, which focus on the current job. It also is not limited to the job avenues in the current organization but may focus on other development aspects also.   Training and development of Swisscom: The next generation of employees will determine Swisscom success in the future. Each year they train around 820 new employees in six vocational disciplines. Their training model is innovative and unique in Switzerland, and it promotes personal responsibility and independence in our trainees. We offer opportunities for graduates and undergraduates alike to enter the world of work as a trainee or intern, to get to know our company and gain some early experience in the industry: each year ten university graduates work as trainees in line projects and around 70 undergraduates complete a three to twelve month internship. We organize workshops and events for students and attend university job fairs. The future shape of vocational training: The new vocational training model which has been phased in since the summer of 2004 reflects the rapidly changing employment market as well as new demands placed on the apprentices. It encourages personal responsibility and individualized self-learning. Clear performance goals and hands-on project work are important pillars of the training model. One of the central elements of the new model is a new portal specially developed for vocational training. By developing such a model, Swisscom has made a pioneering contribution to vocational training in Switzerland and in 2005 was presented with the Swiss Leadership Forum “Human Award”.   In 2005, 252 apprentices successfully completed their basic training at Swisscom. Swisscom provides vocational training for around 850 apprentices in the fields of retailing, IT, telemetric, electronics, commerce.   Swisscom works as a responsible employer with a long-term vision. They are committed to vocational training, to nurturing young talent and to maintaining the employability of our employees. We support modern ways of working, such as home-office work, and we use corporate volunteering programmers to promote our employees’ commitment towards society and the environment in general. The demands of the profession have continued to change and increase significantly in recent years. It is therefore very important for us that our employee training is thorough and ongoing. Our annual Swisscom Champion Award is aimed at all employees who are looking for a challenge, who have an entrepreneurial mindset and who enjoy working in multi-disciplinary teams.

Maintaining a Quality Workforce:

Flexible work & Work–life balance Flexible work arrangements are alternate arrangements or schedules from the traditional working day and week. Employees may choose a different work schedule to meet personal or family needs. Alternatively, employers may initiate various schedules to meet their customer needs. Flex time Flex time is an arrangement where employees work a full day but they can vary their working hours. These arrangements are usually established with specific guidelines so that a “core” working day exists. Reduced hours/Part-time Employees may choose to work fewer than the standard 37.5 or 40 hours work week. These arrangements may be on a temporary or permanent basis depending on individual circumstances. It may also be considered in some cases for employees with health problems or disabilities. Work hours may be negotiated, or they may be chosen to coincide with peak workload hours depending on the type of business. Compressed work week Compressed work week occurs when an employee works for longer periods of time per day or shift in exchange for a day off. Employees may start earlier or finish later that the normal work day. Common arrangements for a 40 hours’ work week are working 10 hours per day, 4 days a week; working an extra hour a day with 1 day off every 2 weeks; or working an extra half hour a day and having one day every 3 or 4 weeks off. Tele work/Telecommuting Tele work or telecommuting occurs when people to do at least some of their regular work from home instead of going into the office. Job sharing Job sharing occurs when two or more people share one or more positions or set of duties. It should be clear before starting how these arrangements affect pay, benefits, and holidays. It is very important that those in a job sharing arrangement work effectively as a team, and communicate well. Job sharing may be an option when few part-time positions are available within the company   Work–life balance is a concept including proper prioritizing between “work” (career and ambition) and “lifestyle” (health, pleasure, leisure, family and spiritual development/meditation). Related, though broader, terms include “lifestyle calm balance” and “lifestyle choices” . In the study, Work-Family Spillover and Daily Reports of Work and Family Stress in the Adult Labor Force, researchers found that with an increased amount of negative spillover from work to family, the likelihood of reporting stress within the family increased by 74%, and with an increased amount of negative spillover from family to work the likelihood to report stress felt at work increased by 47%. .   Flexibility and Work-life balance of Swisscom:   Swisscom encourages a balance between work and private life. Swisscom creates the right conditions for striking a good work/life balance. Swisscom gives its staff opportunities for flexible working hours, five weeks’ annual leave, maternity and paternity leave and payment of pension fund contributions during unpaid leave of up to three months.   As a family-friendly employer, Swisscom pays a child allowance and education allowance of CHF 240 even to part-time employees, and grants generous leave on family-related grounds, for instance for adoptions. Not only does it provide support for external childcare facilities in the form of financial contributions, but also by facilitating access to free advisory services provided by an outside counseling agency (family service). In addition, members of the management have the opportunity to take a sabbatical depending on their actual length of employment. The working week for employees covered by the CEA is 40 hours. Five weeks’ annual leave (six weeks from age 60), 16 weeks’ maternity leave and ten days’ paternity leave are also among the progressive fringe benefits defined by the CEA. Employees also enjoy an additional week of paid leave after five years of service. Swisscom pays a child and education allowance which in most cases is above the statutory cantonal allowance, and grants leave on special family-related grounds such as adoption leave. In the case of incapacity to work due to illness or accident, Swisscom continues to pay the employee’s salary for 730 days: 100% in the first year and 80% in the second. On 1 January 2013 a new CEA entered into effect with partial adjustments to benefits and regulations aimed at strengthening the marketability of employees.   Social Counseling: Swisscom takes the social needs of its employees seriously. Employees with questions or problems can turn to Swisscom’s advisory services at any time. This is an internal specialist centre which provides support for all Swisscom employees throughout Switzerland. It offers advice on life management, family and partnerships, work, health, finances and social insurance. It is always available when employees have questions, emerging difficulties or when need has already arisen. The prevention and advisory services are designed to help staff recognise problems early on, face these constructively and improve their quality of life – both at work and in their private lives. Swisscom’s social advisory services can thus contribute to the well-being, enjoyment of life, motivation and performance of employees.  Our highly qualified employees need to be able to combine family life with their career. For this reason, we offer the men and women who work for us attractive working hours, including part-time work and the option of working from home. We offer various programmes for parents, which provide them with targeted support in their dual role as parents and employees – including financial support. This enables us to provide added value, both for our employees and for the company. Flexible Time Schedule in Swisscom: In principle there should be a sensible balance between working hours and leisure time.  Working hours at Swisscom depend on the area of activity. Employees in the Swisscom Shops or in Contact Centers work fixed hours, for example,  whereas the service and support areas need to be on call at all times. In many other roles, there is a high degree of flexibility regarding working hours. This allows you to agree your working hours with your line manager according to your individual preferences. Even your working location doesn’t necessarily always have to be the same. Alongside the well-established full-time and part-time working options, Swisscom offers you variety of possibilities to work flexibly.

  • Long-term account You build up working hours during busy periods and later use them as additional leave days or to temporarily reduce your working hours.
  • Tele-working You occasionally work from home, saving you from commuting and allowing you to divide up your time as you wish. Swisscom will supply you with a PC, together with a fast Internet connection and access to the intranet.

Annual working hours: Your working hours are calculated on an annual rather than a weekly basis. It is possible to agree variable daily, weekly or monthly working hours, particularly in areas where order volumes are subject to a high degree of fluctuation.  This allows you to work flexibly, yet still have a regular income   Compensation & Benefits Compensation (also known as Total Rewards) can be defined as all of the rewards earned by employees in return for their labor. This includes:

  • Direct financial compensation consisting of pay received in the form of wages, salaries, bonuses and commissions provided at regular and consistent intervals
  • Indirect financial compensation including all financial rewards that are not included in direct compensation and understood to form part of the social contract between the employer and employee such as benefits, leaves, retirement plans, education, and employee services
  • Non-financial compensation referring to topics such as career development and advancement opportunities, opportunities for recognition, as well as work environment and conditions

While employees tend to focus on direct financial compensation when contemplating their rewards, according to the McKinsey Journal, for individuals who are relatively satisfied with their salary, it is the non-financial rewards that tend to be more effective in contributing to long-term employee engagement. Types of compensation and benefits

  • Legal compliance
  • Wages and salaries
  • Direct benefits
  • Indirect benefits
  • Job Evaluation

1. Legal Compliance When compensating employees an organization must adhere to the existing legislation in the areas of Labor Standards, pay equity, Human Rights, Employment Insurance, pension or retirement benefits, labor relations and Occupational Health and Safety. When compensating employees the following are areas that you need to ensure comply with relevant legislation:

  • Statutory Obligations
    • Minimum Wage
  • Statutory Benefits
    • Employment Insurance
    • Pension Plans

Statutory Obligations A statutory obligation is a requirement that employers are required to provide their employees as determined by the law of the province or territory where the employer operates. The legislation also includes exceptions for certain types of employees, such as managers and professionals. Some key areas covered by legislation are:

  • Minimum Wage
  • Hours of Work
  • Public Holiday Entitlement
  • Overtime
  • Vacations Leave
  • Maternity and Paternity Leaves
  • Adoption and Parental Leaves
  • Emergency/Sick Leave/Compassionate Leave
  • Bereavement Leave
  • Leave Entitlement
  • Grievance procedures
  • Termination of Employment

Statutory Benefits Statutory is defined as something “fixed, authorized, or established by statute”, therefore the benefit packages that Canadian employers offer, are designed to enhance the well-being of their employees, and will contain both statutory and discretionary benefits. Statutory benefits are some of the benefits also referred to as “employer paid” benefits. Types of Employment Insurance benefits There are several types of benefits available. Some are: Regular Benefits These benefits are available to individuals who lose their jobs through no fault of their own (for example, due to shortage of work, seasonal layoffs, or mass layoffs) and who are available for and able to work, but can’t find a job.   Maternity and Parental Benefits These benefits provide support to individuals who are pregnant, have recently given birth, are adopting a child, or are caring for a newborn. 2. Wages and salaries Wages and salaries constitute the payment of the work agreed upon between an employee and his employer. The gross salary corresponds to the total of the sums received by the employee under his work contract prior to any deduction of compulsory contributions. Wages and salaries include the values of any social contributions, income taxes, etc., payable by the employee even if they are actually withheld by the employer for administrative convenience or other reasons and paid directly to social insurance schemes, tax authorities, etc., on behalf of the employee. Wages and salaries may be paid in various ways, including goods or services provided to employees for remuneration in kind instead of, or in addition to, remuneration in cash 3. Direct Benefits Direct benefits are optional, non-wage compensation provided to employees in addition to their normal wages or salaries. These types of benefits may include group insurance (health, dental, vision, life etc.), disability income protection, retirement benefits, daycare, tuition reimbursement, sick leave, vacation (paid and non-paid), and funding of education. Types of direct benefits:

  1. The benefits of benefits plans
  2. The basics: health & dental
  3. Life and AD&D
  4. Long-term disability
  5. Retirement benefits

Now some details of the benefits: The benefits of direct benefits plans Although expensive, there are many intrinsic benefits to providing your employees with a comprehensive benefit plan. For most, it is the ability to find and keep highly qualified staff that is the key driver. Employees are assured that:

  • They can experience a peace of mind which leads to increased productivity and satisfaction by being assured that they love their families are protected in any mishap
  • With personal life and disability insurance they can enjoy additional protection including income replacement in the event of serious illness or disability
  • Employees can feel a sense of pride in their employer if they are satisfied with the coverage they receive

The basics: health & dental Health and dental benefits are considered the foundation of any benefit program design. When considering the root issues of all absenteeism from the workplace, most employers agree that health or dental related illness is cited most as the cause. An organization’s ability to be creative, flexible and generous in providing health and dental coverage can be a key to attracting and retaining top performers as part of the total compensation package. Long-term disability Long-term disability is an income-replacement provision. This is one provision that cannot be purchased through a spousal plan. Long-term disability coverage is applied for when an employee is unable to complete a certain percentage of the essential duties of their role due to illness on an ongoing basis. Retirement benefits A retirement plan or a pension is an arrangement by an employer to provide their employees with an income when they are no longer earning a regular income from working. Retirement plans may be set up by in a variety of ways but typically will have a form of a guaranteed payment. Pension Plans Pension plans are usually classified as either defined benefit or defined contribution according to how the payments are determined.  

  1. 4.       Indirect Benefits

Indirect benefits will look different in every organization. Ultimately it is the way in which you choose to define the culture of your organization and your total compensation rewards program that will differentiate it. Of course, it is important to ensure it aligns with organizational strategic objectives. Recent studies all indicate that in today’s changing work environment it is the flexibility and creativity that draws and keeps the highly skilled employee and much of this is impacted by the organizations choice of indirect benefits The indirect benefits include: Professional Development For many people, especially the younger generations, the ability to develop both personally and professionally is highly valued and a key consideration in deciding where to work. Culture A culture that recognized the importance of connecting performance to rewards were key to employees satisfaction. Receiving effective and realistic feedback, both positive and constructive, increased a continuous learning environment and increases commitment to the organization because performance, both good and bad, is recognized. Compensation and benefits in Swisscom:   Swisscom follows a modern salary system with performance and results components. The salary system at Swisscom guarantees fair remuneration, in line with the market. It is flexible and transparent and takes into account both individual performance and the achievement of common goals.  Its basic principles are:

  • Equal salary for equal work
  • Rewarding personal commitment
  • Profit sharing in line with results

The basic salary constitutes the core element of the salary system and the main part of the salary. It is based on a progressive working contract drawn up jointly by Swisscom and the trade unions.   Your salary level is calculated on the basis of your role and your individual performance, to which is added a performance-related salary component. This variable salary component is determined on the basis of the results of Swisscom, the division and/or the performance of the team. The fringe benefits scheme also offers further benefits to you as an employee. For example, you can make phone calls at special rates and are entitled to a discount on rail travel.   Retirement: Retired but still active – Swisscom’s retirees still have an important place at Swisscom. About 9,100 retired employees are organized into regional groups which regularly hold events for former staff. Swisscom supports these groups both financially and on an organizational level.  


In the era of globalization swisscom is maintaining their position as a leading telecommunication company in Switzerland. In our whole project we have tried to focuses only on their human resources management side. By observing them, we have realized Swisscom is showing very much potentiality in maintaining their quality workforce. Furthermore, by introducing new category of training program (vocationl) they are helping to enhance employees overall improvement. In result they are getting reward from the government.    


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