The fixed component should be adequate for decent living, while the Variable component may be three to four times of the fixed salary. These two combined will provide an attractive CTC which can lure the high performers to your company.
From India, Delhi
From India, Ahmadabad
Going by your input I guess ur co. wanted to treat the recruits as "Trainees" or "Probationers' . Watever the co' want to give as remuneration put them in black & white as "Offer of Appointment" and issue with such conditions including the period of Training/Probation and indicate briefly the wat the successful candidate going to get "without any commitment on either side. It should solve your problem. Also consider the implications under PF/ESI acts.
From India, Bangalore
your company wants to folllow a policy 'if it is heads, I win, if it is tails, you loose'. It wants to gain and gain only. In this process, it may create more confusion in defining the relationship with the employee and may risk in fact being at the recieving end with the host of labour laws and the law of contracts governing the field, not to speak of large volume of case law on interpretation of terms of employment.Therefore it is better to be clear and keep things simple so that both parties know where they stand in relation to each other.
HR & Labour Law Advsior
From India, Mumbai
All companies are required to hand over appointment letters to any new joinees of the company. It is always good, if you can mention in the appointment letter about the fixed and variable percentages of the salary. Like fixed is 60%(payable monthly) and variable is 40%( paid only if the target is achieved) and the employees must be given a chance to get used to the job rather than deducting from their first month salary. After 3 months or 6 months, if the employee don't perform, the management can deduct the variable amount from their salary.
If your company only gives mobile and travel expenses, you will not find good marketing executives as they are the ones highly paid in the industry. Gaining business for the company depends upon their performance, which you can analyze after they start working with your firm. Its always better to inform them about the salary details and then take them to the firm.
From India, Kochi