Employer Expectations: How Much Profit Should You Generate from Your Salary?

bluesky12
Can someone help me with this? I am looking to find out the expectations of an employer from an employee in terms of profits based on the fixed salary given. For example, if an employee has a fixed salary of 2 LPA, is the expectation that he/she should give back 5 times 2 LPA to the organization?

Regards
vivaek
To my knowledge, there are no hard and fast rules regarding the return on investment for each employee. It purely depends on the nature of the business and the organization's business model. I think predicting it is tough, and making generalizations may only be possible to a certain extent.

Thank you.
bluesky12
As far as my knowledge goes, I think it is generalized as I had heard it from an HR professional long back. However, I'm not too sure if the factor of 5 remains the same or if it has increased in the current scenario.

Regards,
Vivek
saiconsult
A candidate can gauge the expectations of the employer from the profile of responsibilities given to him by the employer. For example, a candidate selected for a marketing position may be given targets, an area of operation, and the percentage of business to be generated, which gives him a fair idea of the employer's expectations. The expectations depend upon the position, grade, and nature of the business, etc. You may go through the job profile or discuss with your colleagues who are in a similar post as yours.

Regards,
B. Saikumar HR & IR Advisor
rkn61
Appropriate Factor for Employee Contribution

Factor 10 is more appropriate. If a person is drawing a salary of Rs. 25,000/- per month, he should give back a benefit to the company worth Rs. 2.5 lacs per month.

Thanks,
R K Nair
srivastavacmlal
Neither factor 5 nor factor 10 can be a fixed parameter to gauge the delivery of an employee to the organization. It will mainly depend upon the area of work assigned to an employee deputed only in sales/marketing. You cannot apply any factor to the salary paid to a Security Guard, an Accountant, an office clerk or Receptionist, a purchase officer, a Store Keeper, a Timekeeper, an HR Executive, a maintenance engineer, etc. In view of this, it is only a misleading concept to attach any factor to the salary of an employee as supposed by you.

I hope this clears your query.

Regards,
Srivastava C.M. Lal
gopinath varahamurthi
It is one of the best questions—what an employer seeks or expects from the employee for the fixed salary or the salary received from them. Perhaps, a salary is not a fixed amount of money an employee can receive without reasons or causes; it is payment for work done or services rendered over a fixed period. It is the compensation an employee receives from the employer for the time spent in the office as an asset for the employee's work or services. There is certainly a benefit that exists in the service or work done or being done by the employee.

The service or work is certainly defined, either hidden or in plain sight. In either case, the benefits are mutually agreed upon by the employer and employee to fulfill tasks to the satisfaction of the employer or reporting officer. Even a timekeeper's work is fully defined; they closely monitor the clock-ins and clock-outs of other employees and the duration of their stay in the factory, workplace, office, etc. This is ultimately considered for the calculation of a fixed or floating salary based on the kind of benefits provided. Furthermore, salaries are fixed in accordance with the work each employee carries out—merit, customer care, sales, marketing, supervision, accounting, production, purchasing, office maintenance, cleaning, socio-cultural benefits of the organization and the employee, employer commitments. Some employees are assets who work beyond the actual money they receive, while some need to have their contributions calculated, some need guidance, and some need motivation. These categories work together for the advancement of the organization in the market, country, or operational area.

Thus, every aspect is considered when determining a fixed or floating salary with benefits in society. It is a wide-open, contradictory, and conflicting scenario; however, organizations must survive amidst these facts and grow with zeal.

Regards
vivaek
After going through all the replies, I feel that if a position contributes to the growth of the organization with full effort, that is the real ROI for that position.

Role of an Office Assistant

For instance, the role of an office assistant is to support the designated persons to the maximum. In a project-based company, the extra time the person invests in supporting the team can be viewed as the ROI. If my view appears vague, I request my seniors to correct me in this regard.
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