Dear Team, I am seeking your valuable insights on the following:
Consolidated Pay for Re-engaged Retired Employees
When finalizing the consolidated pay for a retired employee who is re-engaged on a contractual basis, what percentage of the last drawn salary is typically considered? This is particularly pertinent to the construction industry.
Standard Benchmarks and Practices
Are there any standard benchmarks or practices that your organizations follow (for example, 40%, 50%, etc.)?
Key Factors to Consider
I am also interested in understanding what key factors are usually taken into account. Would these include aspects such as the criticality of the role, previous experience, or the duration of engagement?
I look forward to your insights and suggestions.
From India, Bengaluru
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Consolidated Pay for Re-engaged Retired Employees
When finalizing the consolidated pay for a retired employee who is re-engaged on a contractual basis, what percentage of the last drawn salary is typically considered? This is particularly pertinent to the construction industry.
Standard Benchmarks and Practices
Are there any standard benchmarks or practices that your organizations follow (for example, 40%, 50%, etc.)?
Key Factors to Consider
I am also interested in understanding what key factors are usually taken into account. Would these include aspects such as the criticality of the role, previous experience, or the duration of engagement?
I look forward to your insights and suggestions.
From India, Bengaluru
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There is no such benchmark or percentage-based fixation practice available for re-employed persons. You can decide the amount of remuneration based on the skills each person has. Moreover, if you fix a benchmark for such cases, it will become a policy of the company, and then you may not be able to deviate from it when a very deserving case comes.
For example, for a highly efficient manager/supervisor who is good at man management besides being excellent in his usual functions relating to construction, you may have to offer a good salary, failing which he may get an opening very easily in other construction companies. Sometimes, it would be equal to the last salary drawn by him. If you have norms for rehiring and fixing salary for such rehired persons, you may lose good persons.
From India, Kannur
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4526For example, for a highly efficient manager/supervisor who is good at man management besides being excellent in his usual functions relating to construction, you may have to offer a good salary, failing which he may get an opening very easily in other construction companies. Sometimes, it would be equal to the last salary drawn by him. If you have norms for rehiring and fixing salary for such rehired persons, you may lose good persons.
From India, Kannur
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In determining the consolidated pay for re-engaged retirees in the construction industry, it is crucial to consider various factors to ensure fair compensation. Here are some key points to keep in mind:
1. Percentage of Last Drawn Salary:
- Typically, the percentage of the last drawn salary considered for re-engaged retirees varies based on company policies and industry standards. It can range from 40% to 60% of the previous salary. However, it is essential to assess individual circumstances and market conditions to determine the appropriate percentage.
2. Standard Benchmarks:
- While there may not be universal benchmarks, organizations often consider factors such as the retiree's skill set, experience, and the prevailing market rates when deciding on the consolidated pay. Some companies may use a percentage of the last drawn salary as a reference point.
3. Key Factors to Consider:
- Criticality of the Role: The importance of the role the retiree will be fulfilling in the organization.
- Previous Experience: The relevant experience and expertise the retiree brings to the role.
- Duration of Engagement: The expected length of the contract and the scope of work involved.
4. Customization and Flexibility:
- It is advisable to tailor the consolidated pay based on a combination of these factors to ensure a fair and competitive compensation package for re-engaged retirees.
5. Legal Compliance:
- Ensure that the compensation package complies with labor laws, especially regarding the rights of re-engaged retirees and any specific regulations in the construction industry.
By considering these factors and industry best practices, organizations can establish a transparent and equitable approach to determining consolidated pay for re-engaged retirees in the construction sector.
From India, Gurugram
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1. Percentage of Last Drawn Salary:
- Typically, the percentage of the last drawn salary considered for re-engaged retirees varies based on company policies and industry standards. It can range from 40% to 60% of the previous salary. However, it is essential to assess individual circumstances and market conditions to determine the appropriate percentage.
2. Standard Benchmarks:
- While there may not be universal benchmarks, organizations often consider factors such as the retiree's skill set, experience, and the prevailing market rates when deciding on the consolidated pay. Some companies may use a percentage of the last drawn salary as a reference point.
3. Key Factors to Consider:
- Criticality of the Role: The importance of the role the retiree will be fulfilling in the organization.
- Previous Experience: The relevant experience and expertise the retiree brings to the role.
- Duration of Engagement: The expected length of the contract and the scope of work involved.
4. Customization and Flexibility:
- It is advisable to tailor the consolidated pay based on a combination of these factors to ensure a fair and competitive compensation package for re-engaged retirees.
5. Legal Compliance:
- Ensure that the compensation package complies with labor laws, especially regarding the rights of re-engaged retirees and any specific regulations in the construction industry.
By considering these factors and industry best practices, organizations can establish a transparent and equitable approach to determining consolidated pay for re-engaged retirees in the construction sector.
From India, Gurugram
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There is no such standard benchmark or practices for re-employing retired employees.
Key Questions to Consider
1. Why do you need the employee after retirement?
2. Are you unable to find a replacement?
3. Is the person indispensable?
The above questions help you find your answer. In the case of a senior position, HR has no role because the owner makes the decision. The cost-benefit analysis is crucial to decide the rate of payment. Business promotion and client management are key features. Therefore, consider business development and revenue generation. Based on my experience, consider offering between 70% to 80% of the previous salary, or in rare cases, the same amount as prior to retirement.
From India, Mumbai
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Key Questions to Consider
1. Why do you need the employee after retirement?
2. Are you unable to find a replacement?
3. Is the person indispensable?
The above questions help you find your answer. In the case of a senior position, HR has no role because the owner makes the decision. The cost-benefit analysis is crucial to decide the rate of payment. Business promotion and client management are key features. Therefore, consider business development and revenue generation. Based on my experience, consider offering between 70% to 80% of the previous salary, or in rare cases, the same amount as prior to retirement.
From India, Mumbai
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thank you sir
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CiteHR.AI
(Fact Checked)-Your input is correct. There's no standard benchmark for re-employing retired employees. It largely depends on the role's criticality, the individual's experience, and the company's needs. (1 Acknowledge point)
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Sharavanakumara
THANK YOU FOR YOUR QUICK RESPONSCiteHR.AI
(Fact Checked)-Your response is accurate. Flexibility in pay for rehired retirees can indeed attract valuable talent. It's important to balance between policy and individual assessment. (1 Acknowledge point)CiteHR.AI
(Fact Checked)-Your response is accurate. Flexibility in remuneration for rehired retirees allows for consideration of individual skills and market conditions. (1 Acknowledge point)