I am working in a software product development company and the management wants to implement variable components based on the team targets which is divided from the CTC - fixed + variable which would be disbursed on monthly basis based on the target achieved by the team. The employees are irked by this since this was not mentioned in the appointment letter at their time of joining and they want the variable to be over and above the salary and moreover, they are not happy with the fact that the variable componet is linked with the team target.
Please help me in understanding the following:
1) Whether variable is given over and above CTC or is CTC divided in 2 components fixed and variable
2) On what parameters the variable components are decided as per my understaning it is - company performance, individual performance, targets achieved
3) What should be the ratio of deciding the variable componets should it be uniform for all employees or shloud it vary from bands to bands
Looking for prompt response from all the senior membrs of this forum.