Muscat, Oman Investment Authority (OIA) has announced the completion of its project to rationalise compensation and benefits for employees of State-Owned companies, as part of OIA’s approach to promote profitability, efficiency, and productivity of these companies in various aspects.
The project aims to rationalise salaries, allowances, and benefits in a realistic approach in accordance with the dynamics that the Omani economy is facing. In addition, the project aims to enhance financial sustainability through the projected savings from this scheme, taking into account compensation and benefits competitiveness in some sectors. The new scheme will be effective from 1 April of this year.
Planning of the project started in last July, when OIA commissioned Takatuf, one of its subsidiaries, to conduct a comprehensive study of these companies within three main aspects; Human Resources Policies, Compensation and Benefits, and Organisation Structures. Takatuf also studied the best practices of governance of those aspects globally for the State-Owned companies, which covered a number of member states of the Organisation for Economic Co-operation and Development.
In light of these studies, a regulatory framework has been devised that takes into account introducing an Omani standard of reference that fits within the national economy and puts in consideration the competitiveness of the business environment in the Sultanate. In addition, the new framework links compensation and benefits to the company’s performance and the mandate, while guarantees fairness both at the level of the State-Owned companies and economic sectors.
The framework was designed to reduce the side effects that may result from this project. The new regulatory framework complies the related legal and administrative requirements.
A number of workshops targeting Chairpersons of Boards of Directors, CEOs, and Heads of Human Resources will accompany the launch of the project in order to familiarise them with the new framework and its implementation mechanisms.
Oman Investment Authority continues to adopt practices and measures to ensure the existence of a comprehensive governance framework for the State-Owned companies in order to improve their performance, especially through ‘Rawabet’ program. The authority continues to review the organizational and operational structures of holding companies by restructuring, merging and dissolving subsidiary companies in order to maximize their economic and financial returns, and further empower the private sector in its contribution to the development of Oman.
Source: Oman News Agency