Variable Pay - Employee Performance

Can Variable Pay be a part of the CTC of an employee. As far as I think Variable Pay is based on the employees performance during the entire year so how can that be decided in advance. Is it correct to include it in the Annual CTC of an employee?
Please share your views.
Rgds
Kamini

Hey Kamini,
Actually if you want to motivate your employees you can tell them in advance you are entiltied for variable pay and the amount but this will be based on your performace.
Ex: CTC : 10000
Fixed pay : 7000
Variable pay: 3000
You can tell based on your performace your 3000 will be paid else they might get less.
So depends on this you can structure it for your organization

Hi Sowmya,
In your reply it is very clear that variable pay is inculded in the CTC. Correct me if i am wrong.
Regards
Amith R.

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Regards
M. Peer Mohamed Sardhar
093831 93832

Yes it is included but its always depends on the company policies. If they are willing they can have at the begininig else at the end

Kamini:
It varies from companies 2 companies, you can add it and clearly mention about it or pay them seperate as a bonus component on their KRA's achieved
Thanks
- Mirza
Hyderabad

Hiiii Kamini,
Yes variable pay can be a part of CTC. In our company we have a salary structure wherein we call it as special pay. But variable pay is something which will be paid depending on the performance of an employee. So both can be included in CTC.

dear kAMINI,
in this current scenanrio we are not getting the proper man power with the required skill so the market is open now and the employee turn over is also large for the sake of retension of the skill and good man power we are trying to keep the existing mam power for the longer time.
in the above connection so many new HR technics and policies are their and this is the one of the HR policy for the retension
and the same is comunicated during interview