Hello everyone,
I believe CTC is the total money that you spend on the employee... I would include the following factors in the CTC of an employee...
* Cost of Hiring - Entire recruitment & Selection costs
* Opportunity Cost when Hiring (Im not sure of this but i've heard that there is an opportunity cost when you select ONE person from a group which has 2 or more people who are equally eligible for the job after the selection process is over - i.e. you interviewed all and you found all of them suitable for the current job - but you could pick only one of them as you had only one opening. So just because you selected this person, you could not select any of the others - this is again an opportunity cost)
* Basic Pay / Salary
* Incentives / Bonus / Performance based pay
* PF, Insurance, etc,
* All the allowances - (details have been given in so many replies)
* Managerial time - (time you manager spend in teaching you the work - its an opportunity cost bcos he is not doing his work in the time that he spends with you - so it has to be credited to your account. )
* Training cost - training other than actual job (soft-skill training) or if you get an external trainer
* Cost of mistakes that you make
* Cost of Irrecoverable Mistakes that a company cannot do anything about (they obviously cant deduct this from your salary)
* Infrastructure Cost [Electricity, Computer, Internet (to use cite HR ;-)), furniture & Basic Amenities
* Cost of Re-Hiring - If this person whom they hire leaves the company before delivering results (uses our company as a door-mat Grrrrrr!!!! :evil: ) ---- *A part of this also goes as a cost of hiring for the next person on the same place* -- too confusing.. eh? :roll:
This is all what i could put from my understanding. Please add / give feedback on this...
Regards,
Manish Modani
I believe CTC is the total money that you spend on the employee... I would include the following factors in the CTC of an employee...
* Cost of Hiring - Entire recruitment & Selection costs
* Opportunity Cost when Hiring (Im not sure of this but i've heard that there is an opportunity cost when you select ONE person from a group which has 2 or more people who are equally eligible for the job after the selection process is over - i.e. you interviewed all and you found all of them suitable for the current job - but you could pick only one of them as you had only one opening. So just because you selected this person, you could not select any of the others - this is again an opportunity cost)
* Basic Pay / Salary
* Incentives / Bonus / Performance based pay
* PF, Insurance, etc,
* All the allowances - (details have been given in so many replies)
* Managerial time - (time you manager spend in teaching you the work - its an opportunity cost bcos he is not doing his work in the time that he spends with you - so it has to be credited to your account. )
* Training cost - training other than actual job (soft-skill training) or if you get an external trainer
* Cost of mistakes that you make
* Cost of Irrecoverable Mistakes that a company cannot do anything about (they obviously cant deduct this from your salary)
* Infrastructure Cost [Electricity, Computer, Internet (to use cite HR ;-)), furniture & Basic Amenities
* Cost of Re-Hiring - If this person whom they hire leaves the company before delivering results (uses our company as a door-mat Grrrrrr!!!! :evil: ) ---- *A part of this also goes as a cost of hiring for the next person on the same place* -- too confusing.. eh? :roll:
This is all what i could put from my understanding. Please add / give feedback on this...
Regards,
Manish Modani