I am looking out for any suggestions for a Compensation Plan/Model to understand the focus of today's Gen-Y. Kindly guide or direct me to any source of such information.
Need to understand whether Gen Y puts more emphasis on Cash In Hand or Retirals/Long-Term Benefits? (YES / NO - WHY)
Adding to the above, what options does today's industry (any vertical) find attractive to attract the same, in terms of compensation, or say, salary structure for Gen Y, which is a major part/pillar of any organization today?
From India, Mumbai
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1Need to understand whether Gen Y puts more emphasis on Cash In Hand or Retirals/Long-Term Benefits? (YES / NO - WHY)
Adding to the above, what options does today's industry (any vertical) find attractive to attract the same, in terms of compensation, or say, salary structure for Gen Y, which is a major part/pillar of any organization today?
From India, Mumbai
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Allow me to rephrase your question: you would need to use RSI test (based on Edgar Schein's motives) for the above. There are 9 career anchors, and by administering this test, we get to know what the priority areas are for the particular individual. We decide on role fits and determine which components of the flexible benefits plan to use accordingly. Please note, trends provide information, but when it comes to designing C&B, every individual is unique. That's where flexible benefits/cafeteria system of benefits comes into place. I have attended certified Compensation and Benefits training by Carlton Advanced Management Institute.
From India, Delhi
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From India, Delhi
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Supriya,
It would be very tricky to decide on a compensation structure based on what Gen-Y values. A survey would reveal that they mostly prefer cash over kind. However, over the years, companies have realized otherwise. Hence, an industry benchmarking would show that they all offer significant non-cash benefits.
An anecdotal example - I used to work with a consulting firm called McKinsey. The average age is around 30. Most of them did not know or ever inquire about non-cash benefits such as health or life insurance. One day, out of the blue, we came to know that a colleague (~29 years old, recently married) was diagnosed with cancer. He suffered for several months before finally succumbing to the illness. The firm paid for all his medical costs and 2 times his annual salary to his nominee.
You can imagine the extent to which the family valued the firm's gesture - so did the rest of us. A company is able to offer such benefits by virtue of constant provisioning over the years through term and health insurance.
You should definitely weigh them while designing your compensation structure.
Regards,
Abhishek Bondia
From India, Ghaziabad
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It would be very tricky to decide on a compensation structure based on what Gen-Y values. A survey would reveal that they mostly prefer cash over kind. However, over the years, companies have realized otherwise. Hence, an industry benchmarking would show that they all offer significant non-cash benefits.
An anecdotal example - I used to work with a consulting firm called McKinsey. The average age is around 30. Most of them did not know or ever inquire about non-cash benefits such as health or life insurance. One day, out of the blue, we came to know that a colleague (~29 years old, recently married) was diagnosed with cancer. He suffered for several months before finally succumbing to the illness. The firm paid for all his medical costs and 2 times his annual salary to his nominee.
You can imagine the extent to which the family valued the firm's gesture - so did the rest of us. A company is able to offer such benefits by virtue of constant provisioning over the years through term and health insurance.
You should definitely weigh them while designing your compensation structure.
Regards,
Abhishek Bondia
From India, Ghaziabad
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Flexi Benefits Plan.doc