Revamping BPO Pay: How to Design a Balanced Incentive Package with Rs. 10,000 Budget?

Hi,

I am thinking of revamping the pay structure of our BPO employees and I am looking for suggestions on that. I am considering introducing attendance allowance, loyalty bonus, and performance-linked incentives for this purpose. How would I go about designing the pay package if, for example, I want to design it for Rs. 10,000 per month? Besides the basic salary, House Rent Allowance (HRA), and conveyance allowance, which part would remain fixed, and which part would be variable?

It would be great if you could assist me with this.

Thanks and regards,
Ayona

Hi, Ayona,

Well, I would tell you what kind of bonus plan we follow in our company. I don't know whether it would work for you or not.

1. We deduct 8.33% of their gross salary every month as a bonus and pay it back to them on Diwali. You can do this by also adding your share of contribution along with their accumulated bonus.

2. Along with this, what we generally do is if an employee has completed 1.5 years in the company, he is given 8.33% of his annual CTC as a Loyal Bonus, and this is repeated every year (8.33% of the current CTC). You need not do it every year. You can keep a limit for 3 years or so.

3. Every month, we plan for an outing in the city itself. In this outing, the company pays 50% of the expenses for tickets or anything. Food is on the employee. In case you want, you can even include food. This is generally for employees who are from out of state and don't know places around.

Hope I have helped you out.

Chitra

Hi Ayona,

I also work in a BPO. We introduced a DIP (Deferred Income Plan). DIP is a plan wherein you pay employees an incentive based on a few criteria like performance, attendance, and attrition. There are certain individual and team targets that the team needs to achieve for a given period of time. The intent for a DIP was:

- To curb attrition/planned and unplanned absenteeism.
- To enhance performance.
- To build team performance.

We were quite successful in all of the above. Let me know if you need more info on the same.

Warm Regards,
Carol S

Hello,

We have close to around 60 (sixty) employees in our BPO division. I am revamping the pay structure and will be designing the incentives package for them. Can anybody please shed light on DIP (Deferred Incentive Plan) and how I can introduce it in my own organization? I have designed the pay package; please see the attached and let me know if I am on the right track. At this point, we would not be able to provide any insurance scheme to our employees. I am, however, very keen on implementing the DIP in our organization.

Waiting for your suggestions!

Ayona

Sorry, I missed out the attachment.

Hi Dear,

I am new to this community. I have a question: Where is the Incentive part of the CTC, and how was it arrived upon?

Hello guys!

I am still waiting for your suggestions. I have designed the pay package of our call center division. All I want to know is, how would I go about if I want to design the incentives part? I am keen to know about DIP (Deferred Incentive Plan) and how to go about it if I want to implement it in my org. Can nobody shed any light on this? I am still waiting.

Thanks and regards, Ayona

Hi,

I have attached the same.

Hi,

I am looking for designing an organizational structure for a BPO. Please advise me on the best structure for a BPO organization along with designations and bands. I am also interested in various plans like DIPS used by BPOs for successful operation. The BPO I am building is for around 80 employees. Please reply on an urgent basis.

In our company, we have introduced the performance-linked incentive (PLI) where there is a fixed monthly component and a variable component linked to productivity. This PLI is payable after every quarter and will be calculated based on the individual employee's Key Result Areas (KRA). I would like to have suggestions on how the PLI amount can be reflected in the monthly payslip.