Dear Sunil,
It is always not possible to match the competitors in all respects. Either we design our package to compete or try to market it differently.
First, let us take designing the package. Your suggestion is really a good one, you are not reducing any money to employees nor increasing the pay bill of the company. If your concern is about the competition paying more basic, then divide your contractual bonus over Basic, Housing and other allowances (proportionately to their ratio...if housing and other allowances are given as a % of Basic), so that the total direct package does not increase. Mind you, however, it increases the indirects to the company, by way of PF contribution, Gratuity etc which are basic dependents.
My suggestion, you market it correctly. You can have it as an allowance and market it as a package or take home. You can highlight, performance bonus is extra which is paid based on the profit etc. If you have a trend say, it varies between 2-4 months etc. you can still highlight that.
Don't just concentrate on the package alone. You can concentrate on non cash benefits like two-day weekends, office environment, career advancements, good training and work life balance which generally make a big difference for new entrants.
Good Luck
Raghu
From India, Madras
1It is always not possible to match the competitors in all respects. Either we design our package to compete or try to market it differently.
First, let us take designing the package. Your suggestion is really a good one, you are not reducing any money to employees nor increasing the pay bill of the company. If your concern is about the competition paying more basic, then divide your contractual bonus over Basic, Housing and other allowances (proportionately to their ratio...if housing and other allowances are given as a % of Basic), so that the total direct package does not increase. Mind you, however, it increases the indirects to the company, by way of PF contribution, Gratuity etc which are basic dependents.
My suggestion, you market it correctly. You can have it as an allowance and market it as a package or take home. You can highlight, performance bonus is extra which is paid based on the profit etc. If you have a trend say, it varies between 2-4 months etc. you can still highlight that.
Don't just concentrate on the package alone. You can concentrate on non cash benefits like two-day weekends, office environment, career advancements, good training and work life balance which generally make a big difference for new entrants.
Good Luck
Raghu
From India, Madras
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