Dear Amit/Colleagues,
It should be noted from the onset that there have been a few postings on this issue - Compensation. However, I could just recap for the purpose of refreshing our memory or add something new.
Fair and Just Compensation
Firstly, compensation has to be fair and just—that is, in a case of category/status within the same company, no discriminatory packages based on nepotism, gender issues, or favoritism.
Industry Benchmarking
Secondly, it has to be on the average industry benchmark to avoid massive labor/employee turnover in the private company.
Component-Oriented Compensation
Thirdly, the compensation administration itself has to be industry or professionally component-oriented. For example, dressing allowance for the marketing team or TV presenter.
In addition to being fair to management, it has to be payable apart from the issue of industry benchmarking. Individual private companies should be able to sustain whatever they put forward as compensation—monthly and promptly too.
Summary of Compensation Subheads
Above all, in summary, there exist different subheads that compensation falls under:
- Basic Salary
- Housing Allowance
- Medical Allowance
- Lunch Allowance
- Welfare Allowance
- Transport Allowance
- Drivers' Allowance
- Telephone Allowance
- Dressing Allowance
- Entertainment Allowance
- Accident-Free Allowance
- Leave/Holiday Allowance
- Exhibition Allowance, etc.
The list can go on and on, but we should note that some are industry-related while some are career and status-based compensation.
Thanks