Dear Friend,
"see i think one should be paid according to his abilities and what he delivers"
That's EXACTLY what I mean; according to abilities and delivery; and how to judge is through his :
- qualification (quality of Institution quantified according to parameters, such as IIT's at top, next REC's...etc as per RANKING);
- his experience (no. of years; duration; level/post; Company RANKING);
- weightage for personal assessment.
"sometimes to retain talent or to attract the talent company has to pay more"
Yes, that is why I wrote, one should have a cushion of 15-20 % !!! (which is reasonable).
But if you are going to make the company bankrupt by enhancing the Labour and Administrative cost to an extent that it is not covered by the profit margin; then its YOUR CHOICE. (After all, being a consultant, you know better).
Moreover, if you keep giving HEFTY cash remuneration for attracting talent than you"ll make existing employees VERY UNHAPPY.
So, to RETAIN TALENT you give HEFTY INCREMENTS....
and this spiral will continue... in course of time, I don't know if the financials of your company will head north or south. (As a consultant, you are in a better position to explain).
In fact, had
SALARY been the SOLUTION to all the problems; FINANCE PEOPLE would have replaced HR PROFESSIONALS everywhere.
What is the purpose of having an HR deptt. then ??
As an HR consultant, I think you should give a satisfactory answer.
Regards.