Executive Summary

This report provides an in-depth overview of Engro Corporation, one of Pakistan’s largest and
most diversified conglomerates operating across fertilizers, energy, petrochemicals, food,
logistics, and telecommunication infrastructure. Established in 1957 as Esso Fertilizers, Engro
has evolved through several restructuring phases becoming Engro Company in 2003 and Engro
Corporation in 2010 reflecting its expansion into multiple industries. The recent restructuring
under Engro Holdings Limited further optimizes capital efficiency and strategic alignment.
Engro’s major shareholders include associated companies and foreign entities, with Engro
Holdings now serving as the primary parent company. The corporation’s strategies emphasize
diversification, sustainability, ESG principles, and innovation in agriculture and energy.
Competitively, Engro faces strong rivals across sectors, including FFC, FFBL, Fatima Fertilizer,
HUBCO, KAPCO, and various chemical manufacturers. HR practices at Engro closely align
with the company’s mission by focusing on merit-based hiring, continuous learning, and
employee development. Recruitment follows a rigorous process involving resume screening,
written testing, interviews by a managerial panel, and medical evaluation. Training is continuous
and includes orientation, technical programs, leadership development, and on-the-job learning.
Performance management is competitive, with bonuses awarded to the top 50% of employees,
supported by feedback systems and developmental opportunities. Compensation is market-
leading, offering high salaries, gain-sharing bonuses, insurance, retirement benefits, and flexible
leave. The report identifies certain HR challenges such as strict recruitment criteria and a
competitive bonus structure that may demotivate employees. Recommended improvements
include more flexible evaluation methods and a more inclusive reward system to enhance
motivation and retention.

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Contents
Executive Summary.........................................................................................................................1
INTRODUCTION...........................................................................................................................3
MAJOR SHARE HOLDERS:.....................................................................................................3
POLICIES AND STRATEGIES:................................................................................................3
MAJOR COMPETITORS OF STATE LIFE PAKISTAN:........................................................4
COMPANY HISTORY...................................................................................................................5
HISTORY OF ENGRO CORPORATION -1957 TO 2025:.......................................................5
PRODUCT AND SERVICESE THAT ENGRO CORPORATION OFFER:................................8
RECRUITMENT PROCESS:.........................................................................................................9
TRAINING TECHNIQUES:.........................................................................................................15
PERFORMANCE MANAGEMENT AND APPRAISAL PROCESS:........................................18
COMPENSATION TECHNIQUES:.............................................................................................20
ISSUES OR CONCERNS RELATED TO HR FUNCTIONS......................................................22
RECOMMENDATIONS...............................................................................................................24
REFERNCES.................................................................................................................................25
APPENDENCIES..........................................................................................................................26
Interview photo:.........................................................................................................................26
Questionnaire:............................................................................................................................27

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INTRODUCTION
Engro Corporation is one of Pakistan’s largest and most diversified conglomerates. Its business
spans multiple verticals: energy & infrastructure, food & agriculture, petrochemicals, and
telecommunication infrastructure. Engro has subsidiaries like Engro Fertilizers, Engro Energy,
Engro Polymer & Chemicals, Engro Elengy (LNG terminal), Engro Eximp (agriproducts), and
Engro Connect. The company was originally incorporated as Esso Pakistan Fertilizer Company
in 1965. It is deeply rooted in Pakistan’s economic development, with a mission to “unlock
Pakistan’s potential through globally competitive, inclusive solutions.

MAJOR SHARE HOLDERS:

Engro Corporation was restructured recently: Dawood Hercules Corporation (DH Corp)
rebranded as Engro Holdings Limited. As per restructuring terms, Engro Corporation became a
wholly owned subsidiary of Engro Holdings. Historically, the Dawood Group (via Dawood
Hercules) held a large portion: PACRA reports ~46–47% via DH Corp and related entities.
According to Engro’s own shareholder data (pre-restructuring), ~42.8% of shares were held by
“associated companies’ undertakings and related parties,” and ~39.97% by a single shareholder
category (5%+). After restructuring, Engro Holdings’ shareholding pattern shows: associated
companies ~30%, foreign companies ~48.1%, general public ~4.69%, etc.

POLICIES AND STRATEGIES:

Engro Corporation’s strategic direction is shaped by several key policies and approaches:

Diversification: Engro deliberately invests in multiple sectors (agriculture, energy, chemicals,

telecom) to spread risk and leverage synergies.

Sustainable Growth / ESG: In its FY 2023 results, Engro emphasized sustainability and ESG
principles, including environmental stewardship and governance.

Capital Efficiency: The recent restructuring (merging with DH Corp and renaming to Engro
Holdings) is aimed at more efficient capital allocation and value creation across its businesses.

Agricultural Innovation: Through Engro Fertilizers, the company supports farmers, focusing on
high-yield and specialty fertilizers.

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MAJOR COMPETITORS OF STATE LIFE PAKISTAN:
Fertilizer Segment

Fauji Fertilizer Company (FFC) — One of the largest urea producers.

Fauji Fertilizer bin Qasim (FFBL) — Another major fertilizer competitor.

Fatima Fertilizer — Also a key player in the fertilizer industry.

Energy / Power Segment

The Hub Power Company (HUBCO) — A major independent power producer in Pakistan.

Kot Addu Power Company (KAPCO) — Another big energy company in power generation.

Also, other IPPs (Independent Power Producers) compete in this space, especially in thermal,
coal, gas, and renewables.

Chemicals / Petrochemicals Segment

Ittehad Chemicals Limited — Competes in caustic soda, chlorine, and other basic chemicals.

Lucky Core Industries (formerly ICI Pakistan) — Produces soda ash, agrochemicals, etc.

Because Engro is a conglomerate, its competitors vary by segment.

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COMPANY HISTORY
Q: could you provide brief overview of company history and its founding?

Engro Corporation began in 1957 when it was first established in Pakistan as Esso Fertilizers,
focusing on fertilizer production. Over time, the company expanded and in 2003 it was
restructured and officially became Engro Company, marking the start of its diversification. In
2005, Engro entered the food industry by launching Engro Foods Limited, further broadening its
business portfolio. Another major development occurred in 2007, when Engro Asahi Polymer
ended its partnership with Mitsubishi, leading to the formation of Engro Polymer and Chemicals
Limited. As Engro continued expanding into multiple sectors fertilizers, foods, chemicals,
energy, and more it underwent a major transformation in 2010, officially becoming Engro
Corporation, a large holding company overseeing all its diverse subsidiaries.

HISTORY OF ENGRO CORPORATION -1957 TO 2025:

Engro Corporation traces its origins back to 1957, when it was first established in Pakistan under
the name Esso Fertilizers. This initial founding marked the beginning of a major industrial
presence in the country, as Esso set up operations to manufacture fertilizers to support Pakistan’s
growing agricultural needs. Over the years, as the company expanded its operations and
strengthened its role in the industrial sector, its ownership and corporate identity evolved. A
major turning point came in 2003, when the organization was formally restructured and
established as Engro Company. This shift signaled a new era of growth, giving the company a
distinct corporate identity and paving the way for further diversification. Building on this
momentum, Engro made a significant expansion in 2005 by entering the food and dairy industry.
It launched Engro Foods Limited, which soon became one of Pakistan’s major producers of dairy
products, beverages, and frozen desserts, including well-known brands such as OMORÉ.

In 2007, another major development took place when Engro Asahi Polymer ended its joint
venture with Mitsubishi by selling its share. This led to the company being renamed Engro
Polymer and Chemicals Limited, reflecting its strengthened position in the chemical and polymer
manufacturing sector. As Engro continued to expand into multiple industries including
fertilizers, foods, chemicals, energy, and petrochemicals the structure of the corporation grew
increasingly diverse. Recognizing this broad diversification, the company underwent one of its

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most important transformations in 2010, when Engro Chemical Pakistan Limited was renamed
Engro Corporation. This new identity formally established Engro as a holding company,
responsible for managing and overseeing several major subsidiaries operating across a wide
range of industries. Today, the history of Engro represents continuous growth, diversification,
and transformation from a single fertilizer manufacturer in 1957 to one of Pakistan’s leading
multinational conglomerates with involvement in foods, energy, chemicals, mining, and other
industrial sectors.

Q: What are the vision and mission statement of the company?

Engro Corporation’s Vision is:

“Aim at transforming the company within five years into first a national food industry giant, then
a regional force, and finally a global player.”

Engro Corporation’s mission is:

“Build branded food business to improve quality of life by offering tasty, affordable and high
nutritional products to our consumers while maximizing stakeholder’s value.”

 To provide unsegregated material solutions that are value-adding, sustainable, and cost-
effective.
 To be a leader in promoting green initiatives, continuous learning, and innovation.
 To create industry adoption of environmentally friendly products.
 To operate with core values of Harmony, Trust, Excellence, and Win-Win, which guide how
Engro works with partners and customers.
Q: How does your HR practice aligns with company’s mission statement?

Engro’s HR practices strongly align with the company’s mission by ensuring that only highly
skilled and competent individuals are hired through a structured recruitment and selection
process, supporting the mission of excellence and value creation.

The HR department promotes a continuous learning culture through regular training,

development programs, and on-the-job learning, which reflects Engro’s commitment to
innovation, improvement, and quality of life. Performance appraisals, competitive salaries, and
strong employee benefits motivate staff to work efficiently and maintain high standards, aligning
with Engro’s mission of delivering superior, value-adding products and ensuring stakeholder

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satisfaction. Additionally, HR fosters teamwork, trust, and harmony through orientation,
feedback, and employee development—values that are central to Engro’s mission and long-term
vision.

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PRODUCT AND SERVICESE THAT ENGRO CORPORATION OFFER:
Q: Could you briefly describe the primary insurance products and services the company offers?

Engro Corporation offers a wide and diverse range of products and services across multiple
industries, making it one of Pakistan’s most diversified conglomerates. In the fertilizer sector,
Engro Fertilizers produces high-quality urea, DAP, NPK blends, and specialty fertilizers, serving
millions of farmers nationwide to improve agricultural productivity. In the foods and dairy
sector, Engro Foods manufactures and markets branded dairy products, fruit drinks, and frozen
desserts, including well-known consumer brands such as OLFRUTE fruit drinks and OMORÉ
ice creams. Through Engro Polymer & Chemicals, the company is involved in the production of
PVC resin, caustic soda, and other petrochemical products that are widely used in construction,
packaging, and industrial applications.

In the energy sector, Engro Powergen develops and operates power plants, including thermal and
renewable energy projects, ensuring sustainable and reliable electricity supply for Pakistan. The
Sindh Engro Coal Mining Company (SECMC) is engaged in coal mining under the Thar Coal
Project, providing indigenous energy resources to reduce Pakistan’s dependence on imported
fuels. Engro also offers logistics and terminal services, including storage, shipping, and handling
of chemicals, LNG, and other industrial materials through Engro Vopak. In addition, the
company focuses on innovation and sustainability through green initiatives, technological
development, and strategic partnerships. Overall, Engro’s products and services span fertilizers,
dairy and food items, petrochemicals, energy generation, mining, and logistics, demonstrating its
commitment to providing high-quality, value-adding solutions for consumers, industries, and
communities across Pakistan.

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RECRUITMENT PROCESS:
Q: How do you advertise job openings? Which platforms or channels are most effective for the
company?

Engro advertises job openings through its official website, LinkedIn, leading job portals (like
Rozee.pk), campus recruitment drives, and internal postings. These channels help the company
attract qualified, diverse, and skilled candidates efficiently, with the official careers portal and
LinkedIn being the most effective for professional hiring.

Advertisement through HR Department

These advertisements include:

Job description

Job specifications

Required experience

Skills and capabilities

This ensures only relevant and qualified candidates apply.

Most Effective Platforms Engro Uses

Engro’s Official Website (Careers Portal)

Engro posts most openings on its official careers page.

Highly effective because:

 Serious and qualified applicants visit the site

 Allows complete applicant tracking
 Maintains a large talent database

LinkedIn

Engro is very active on LinkedIn for job postings.

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It is effective because:

 It reaches professionals with specific skills

 Helps in finding experienced talent
 Supports employer branding and professional networking

Job Portals (Rozee.pk, Mustakbil, Indeed Pakistan)

Engro also uses professional job portals when they need a large applicant pool.
These portals help attract:

 Fresh graduates
 Mid-career professionals
 Technicians and non-management staff

University Career Fairs & Campus Recruitment

For management trainees, interns, and fresh graduates, Engro uses:

 University career fairs

 On-campus recruitment drives
 Internship programs

This channel is effective for finding young talent with growth potential.

Internal Job Postings (Within the Company)

For promotions, transfers, or internal movements, Engro posts jobs internally so existing
employees can apply.

This supports:

 Succession planning
 Internal growth
 Employee motivation

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Q: What methods Engro corporation use to evaluate applications?
Engro Corporation follows a highly structured and systematic evaluation process to ensure that
only the most suitable and capable individuals are selected. The company uses multiple methods
each designed to assess different aspects of a candidate’s qualifications, skills, and overall fit for
the job.

The evaluation process begins as soon as an application arrives. The first method is resuming
screening, where the HR department carefully examines each applicant’s educational
background, previous experience, and skill set. The team checks whether the information in the
resume aligns with the job description (duties and required qualifications) and job specification
(skills, abilities, characteristics needed for the role). This stage allows Engro to filter out
applicants who do not meet the minimum criteria and focus on candidates who show potential.

After this, HR conducts shortlisting. Only those candidates who fulfill the essential requirements
such as experience, technical skills, teamwork, leadership qualities, or communication abilities
are moved to the next stage. This ensures consistency and fairness in the selection process.

The shortlisted candidates are then evaluated through a written test, which is a compulsory part
of Engro’s assessment system. This test is designed to measure three important aspects:

 IQ level,

 English composition

 Logical reasoning

The test lasts for one hour and is checked manually by the HR team. Through this method, Engro
assesses the mental sharpness, analytical skills, and written communication ability of every
applicant quality considered essential for success in the company.

Candidates who perform well in the test move forward to the interview stage, which is conducted
by a panel of four interviewers usually one executive and three managers. The interview focuses
on evaluating traits that cannot be measured through a written test. These include:

 Attitude and confidence,

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  Communication skills,

 Personality,

 Ability to handle pressure, and

 Alignment with Engro’s culture and work environment.

Each interviewer scores the candidate individually, and the combined score determines whether
the person moves ahead in the process. This panel-based assessment increases fairness and
minimizes personal bias. Once a candidate successfully clears the interview, they must undergo a
medical examination. This medical test ensures that the applicant is physically fit for the job and
can handle the responsibilities assigned to them.

Only candidates who pass the medical stage proceed to the final hiring step. In the final step, the
HR department sends the candidate’s complete evaluation including test results, interview
scores, and medical report to the relevant department. If the department approves the candidate,
an official job offer and contract are issued, and the candidate is formally hired.

Q: What role do hiring managers play in the interview process in Engro corporation?

In Engro Corporation, hiring managers play a central and highly active role in the interview and
evaluation process. According to the document, the interview is conducted by a panel of four
people, which includes one executive and three managers. These managers act as the primary
evaluators of the candidate’s suitability for the job.

Their role includes:

Participating as Key Interviewers

Hiring managers sit on the interview panel and directly interact with the candidates. They are
responsible for assessing the candidate’s overall behavior, communication style, confidence,
personality, and fit with the department.

Evaluating Qualities That Can't Be Measured Through a Written Test

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Managers assess subjective attributes, which Engro considers equally important as academic or
technical knowledge. They evaluate aspects like:

 attitude

 communication skills

 confidence

 personality

 professionalism

Independent Scoring of Candidates

Each manager on the panel gives individual marks to the candidate based on their personal
evaluation. These scores are later combined to form the final evaluation score. This reduces
personal bias and ensures fairness, because no single manager decides the outcome alone.

Helping Make the Final Hiring Decision

The combined scores and the opinions of the managers play a major role in determining whether
a candidate should be hired. Their insights are especially important because they understand the
department’s day-to-day needs and can judge whether the candidate will perform well in the
specific role.

Q. How Engro corporation ensure diversity and inclusion during recruitment?

The provided document does not state any formal “diversity and inclusion” policies. However,
Engro ensures fairness and equal opportunity through the following practices described in the
recruitment section:

Capability-Based Recruitment (Merit-Focused)

Engro’s recruitment method is based on examining capabilities, meaning candidates are assessed
on their skills, behavior, and knowledge rather than personal background or bias.

This approach promotes an inclusive environment where every applicant is evaluated on merit.

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Use of Clear Job Descriptions and Specifications

The HR department uses detailed job descriptions and job specifications, which outline the
required skills, abilities, and qualifications. This structured approach reduces bias and ensures all
candidates are judged using the same criteria.

Multi-Stage, Objective Screening

Applicants go through resume evaluation, shortlisting, testing, and interviews—each step using
standardized criteria. These layers create a fair and systematic process that reduces
discrimination.

Panel Interviews for Balanced Judgement

Interviews are conducted by a panel of four people (one executive + three managers). Multiple
interviewers minimize personal bias and ensure decisions are jointly made. This supports equal
treatment of all candidates.

Focus on Behavioral and Professional Qualities

The interview panel evaluates candidates on communication skills, confidence, personality, and
attitude qualities unrelated to race, gender, religion, or background. This helps ensure a more
inclusive selection process.

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TRAINING TECHNIQUES:
Q: What kind of training programs are provided to employees, both initially and throughout their
tenure in ENGRO CORPORATION?

Engro Corporation offers a continuous and structured training system designed to develop
employees from the moment they join and throughout their entire career. The document
highlights several forms of training aimed at improving skills, knowledge, and professional
growth.

Initial Training for New Employees

Orientation and Understanding the Company

New employees are given orientation to help them understand Engro’s environment, culture, and
expectations.

Internships to Build Skills Quickly

Internships are provided to help new individuals quickly reach the required skill and knowledge
level for their roles.

Ongoing Training Throughout Employment

Engro strongly believes that employees grow most effectively through experience, so it provides
numerous learning opportunities.

Management Training Programs

Designed to build leadership, decision-making, communication, and managerial capabilities.

• Technical Training Programs

Offered regularly to enhance technical knowledge needed for specialized departments.

• On-the-Job Training (OTJ)

Employees learn directly through practical work tasks and real job experiences.

Specialized Training Methods Used by Engro

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The document lists multiple training methods implemented to improve employee skills and
support long-term development:

• Continuous Learning

Employees are encouraged to keep upgrading their knowledge.

• Cross Training

Employees learn different roles or tasks, improving flexibility and teamwork.

• Distance Learning

Employees receive training remotely through digital or online channels.

• Multimedia Training

Training that uses videos, presentations, and interactive digital tools.

• Near Transfer Training

Training that focuses on skills directly applicable to the employee’s current job.

• Team Leader Training

Programs designed to improve leadership and supervisory capabilities.

Employee Participation in Identifying Training Needs

Engro allows employees to assess their own training needs and propose programs that can help
them perform better. This encourages personal development and aligns training with individual
goals.

Q: How do you assess training needs across departments?

Engro Corporation assesses training needs across departments by relying on a structured and
continuous evaluation approach led by the HR department. The HR team regularly reviews
employees’ performance, skills, and job requirements to determine where additional training is
needed. They analyze the competencies required for each department and compare them with the

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current abilities of employees to identify gaps. Engro believes that development happens most
effectively through experience, so supervisors and managers play a key role by observing
employees’ day-to-day performance and identifying areas where more guidance or skill
enhancement is required. The organization also encourages employee participation in identifying
their own training needs, allowing individuals to suggest programs they believe would improve
their efficiency and help them contribute better to departmental goals. By combining HR
evaluations, managerial observations, job-skill gap analysis, and employee feedback, Engro
ensures that training needs across all departments are accurately identified and addressed in a
timely and effective manner.

Q: How do you measure the effectiveness of training programs?

Engro Corporation measures the effectiveness of its training programs by regularly assessing
how well these programs contribute to overall employee development and organizational
performance. The document explains that Engro conducts evaluations of its training initiatives to
understand the impact they have on employees’ skills, knowledge, and job performance. This
assessment helps the company determine whether the training programs are meeting their
intended goals and whether employees are applying what they learned to their day-to-day
responsibilities. Managers and supervisors also monitor employees after training to observe
improvements in their abilities, behavior, and productivity, since Engro strongly believes in
learning through experience and practical work. By continuously reviewing training outcomes,
gathering observations from supervisors, and considering employee input, Engro ensures that its
training programs remain effective, relevant, and aligned with the organization’s long-term
goals.

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PERFORMANCE MANAGEMENT AND APPRAISAL PROCESS:
Q. How often do performance appraisals take place, and what methods do you use to evaluate
employee performance?

Engro Corporation conducts performance appraisals; however, it clearly explains the methods
the company uses to evaluate employee performance. Engro follows a performance appraisal
system that focuses on both compensation and evaluation of an employee’s contribution to the
organization. The company uses a performance-based approach in which only the top 50% of
performers qualify for bonuses, showing that employees are evaluated relative to one another
rather than only against preset targets. This indicates a comparative or rank-based appraisal
method. The organization places strong emphasis on recognizing high achievers by offering
higher salaries, gain-sharing benefits, medical and financial perks, and other incentives. The
appraisal system is designed to reward exceptional performance and keep employees motivated
by maintaining competitive compensation packages. Through this combination of relative
performance ranking, evaluation of achievements, and reward-linked outcomes, Engro assesses
how well employees are performing and ensures that the highest contributors receive recognition
and benefits.

Q: How do you set performance goals, and how are they communicated to employees?

Engro sets performance goals through its performance appraisal system, which focuses on
identifying top performers and evaluating employees based on their overall contribution rather
than only assigned targets. Their performance goals are linked with rewards like gain sharing,
where only the top 50% performers qualify for bonuses.

Performance-related expectations and benefits are communicated to employees through multiple

HR practices. As stated in the document, Engro maintains a People Development System, where
employees receive feedback from their first year, helping them understand how their
performance is evaluated and what goals they must meet. They also use orientation programs,
training sessions, and continuous interaction to communicate expectations and required
performance levels clearly.

Q: How Engro corporation handle underperformance or performance improvement?

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The document does not directly mention a formal “underperformance policy,” but it clearly
describes how Engro deals with performance issues through its performance appraisal and
development system.

Employees receive constant feedback and development support. Engro’s HR introduces

employees to the People Development System, where they get performance feedback from the
first year. This helps identify areas where employees are not meeting expectations and guides
them toward improvement. Training and skill-building are used to improve performance.
When employees lack skills or performance is below expectations, Engro focuses on training,
continuous learning, cross-training, on-the-job training, distance learning, multimedia training,
etc., to improve their capabilities.

Performance appraisals highlight top performers indirectly signaling who needs improvement.
Engro’s appraisal system gives bonuses only to the top 50% performers, meaning the remaining
employees are clearly identified as needing improvement. This acts as a performance
management mechanism. Focus on employee development over punishment. The document
emphasizes Engro’s belief that employees “grow, learn and develop through experience,”
showing that the company handles underperformance through supportive development, not
penalties.

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COMPENSATION TECHNIQUES:
Q: How does Engro corporation determine employee compensation and benefits?

Engro Corporation determines employee compensation and benefits through a competitive,

performance-linked, and market-based approach. The document states that Engro’s Total
Payment Package is competitively ranged to be the best in the industry, ensuring employees
receive higher-than-average salaries compared to the market.

Key elements include:

Market-Based Compensation

Engro’s philosophy is to keep employees above their market value, meaning salaries are
intentionally set higher than the industry average to attract and retain top talent.

Performance-Based Rewards (Gain Sharing)

Compensation is partly determined by performance. Only the top 50% performers qualify for
bonuses, linking pay directly to employee contribution.

Comprehensive Benefits Package

Engro offers a wide range of benefits, reflecting how compensation is determined not just by
salary but by overall value provided to employees:

Medical and permanent health insurance from Day 1, Retirement and pension schemes, Travel
and subsistence expenses, Car allowance (based on position), Flexible holidays (15–30 days, up
to 40 days), Life insurance for all employees, these benefits show Engro’s emphasis on valuing
and retaining quality human resources, Role and Position Based Compensation, Allowances such
as car allowance and variations in benefits depend on the employee’s position and role within the
company.

Q: How does Engro corporation ensure competitive compensation packages?

Engro Corporation ensures competitive compensation packages by intentionally positioning its

Total Payment Package at the top of the industry. According to the document, Engro’s
compensation philosophy is to always keep employees above their market value, which means

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offering salaries that are higher than the industry average. To maintain this competitiveness,
Engro provides a combination of high base salaries and performance-based rewards, such as
gain-sharing bonuses given to the top 50% of performers. In addition to strong monetary
compensation, Engro further enhances its competitiveness by offering exceptional benefits,
including medical and permanent health insurance from the first day of employment, retirement
and pension schemes, life insurance, car allowances based on position, travel and subsistence
coverage, and a flexible holiday structure. These extensive benefits make Engro’s compensation
package one of the most attractive in the market and help the company retain high-quality talent.

Q: Does Engro corporation offer performance-based incentives or bonuses?

Yes, Engro Corporation offer performance-based incentives, and this is mainly provided through
its gain-sharing system. According to the document, Engro rewards employees not only with
high salaries but also with bonuses that are directly linked to performance. The company
evaluates employees based on their overall ranking rather than just target achievement. Only the
top 50% of performers qualify for these bonuses, making the incentive system competitive and
encouraging employees to deliver their best.

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ISSUES OR CONCERNS RELATED TO HR FUNCTIONS

Q: What are some common challenges or issues that the HR department faces in the fertilizer
industry?

The HR department in the fertilizer industry, as seen in Engro’s case, commonly faces challenges
such as a very strict recruitment process, which can make it difficult for many capable candidates
to demonstrate their full potential. Another issue is the performance-based bonus system, where
only the top 50% of employees receive bonuses, which may create demotivation among the
remaining employees. These concerns highlight the challenges of fair evaluation, employee
motivation, and maintaining an inclusive reward system in the industry.

Q: Have there been any specific HR challenges in terms of recruitment or retention?

One major recruitment challenge is that the company follows a very strict and demanding hiring
process, which includes detailed evaluations, multiple interviews, and strict criteria for skills,
behavior, and experience. While this helps the company hire highly capable people, it can also
make it difficult for many potentially talented candidates to succeed, especially those who may
have the required skills but struggle with confidence or interview pressure. This creates a
limitation in attracting and selecting a wider talent pool.

In terms of retention, the document highlights that Engro’s performance-based bonus system,
where only the top 50% of employees qualify for bonuses, can unintentionally create
dissatisfaction among the remaining employees. Those who fall outside the top tier may feel
undervalued or demotivated, even if they are performing adequately. This competitive reward
structure can affect morale and long-term commitment. Additionally, because Engro sets very
high standards for performance, some employees may feel pressured, which can further
contribute to retention difficulties.

Q: How do you address employee concerns related to work-life balance or workplace culture?

The Engro HRM document shows that the company addresses employee concerns related to
work-life balance and workplace culture through several supportive practices. Engro focuses
strongly on employee development, open communication, and a positive environment, which

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helps create a healthier workplace culture. The organization provides flexibility in annual leave,
allowing employees to choose between 15 to 30 days, increasing up to 40 days after two years.
This flexibility helps employees manage personal and professional responsibilities more
comfortably. Engro also offers exceptional medical, financial, and recreational benefits, ensuring
that employees feel secure and supported beyond work. Their emphasis on orientation,
continuous feedback, and employee interaction helps create a collaborative culture where
employees feel valued and heard. The company’s core values Harmony, Excellence, Trust, and
Win-Win also guide a culture that encourages respect, teamwork, and mutual growth. Together,
these policies and values help the HR department address concerns related to work-life balance
and ensure a positive, supportive workplace culture.

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RECOMMENDATIONS
Q: What improvements or changes would you recommend for the company’s HR processes?

Firstly, though Engro Corporation is one of the largest local multinational companies of
Pakistan, the recruitment criteria should be a little easy. The judging criteria of the candidates
should be designed in a way that each one is able to show off their capabilities in the best
possible manner; because sometimes there is some candidate who is not confident enough to
show off his potential however, he might have lots of potential beneficial for the company.
Secondly, the criteria of giving bonuses to its employees: in the organization each employee is
being judged, noticed and being kept a track of. Therefore, the methodology of only giving
bonuses to the top 50% of the best performers is a bit unfair with the rest of the employees.
There might be employees who due to some personal issue wasn’t able to perform to his full
caliber or if he isn’t one of the top performers he needs the bonus to fulfil his personal needs.
The idea of giving bonuses to a certain percentage of the top performers can be demotivating for
the other employees.

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REFERNCES
https://en.wikipedia.org/wiki/Engro_Corporation

https://www.engro.com/our-company/

https://www.slideshare.net/Elijan877/engro-foods

https://engro-global.com/vision-mission-and-core-values/

https://www.slideshare.net/Alishah28/human-resources-management-of-engro-foods

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APPENDENCIES
Interview photo:

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Questionnaire:
Q: could you provide brief overview of company history and its founding?
Q: What are the vision and mission statement of the company?
Q: how does your HR practice aligns with company’s mission statement?
Q: Could you briefly describe the primary fertilizer products and services the company offers?
Q: How do you advertise job openings? Which platforms or channels are most effective for the
company?
Q: What methods Engro Corporation use to evaluate applications?
Q: What role do hiring managers play in the interview process in Engro Corporation?
Q: How Engro Corporation ensure diversity and inclusion during recruitment?
Q: What kind of training programs are provided to employees, both initially and throughout their
tenure in Engro Corporation?
Q: How do you assess training needs across departments?
Q: How do you measure the effectiveness of training programs?
Q: How often do performance appraisals take place, and what methods do you use to evaluate
employee performance?
Q: How do you set performance goals, and how are they communicated to employees?
Q: How Engro Corporation handle underperformance or performance improvement?
Q: How does Engro Corporation determine employee compensation and benefits?
Q: How does Engro Corporation ensure competitive compensation packages?
Q: Does Engro Corporation offer performance-based incentives or bonuses?
Q: What are some common challenges or issues that the HR department faces in the insurance
industry?
Q: Have there been any specific HR challenges in terms of recruitment or retention?
Q: How do you address employee concerns related to work-life balance or workplace culture?
Q: What improvements or changes would you recommend for the company’s HR processes?

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