hi all, can u plz share some thoughts on compensation package? How do design and what are the factors need to be in consideration while designing it? regards rooma
From India, Lucknow
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1From India, Lucknow
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Hi Rooma,
Can you be more specific as to what you want to know about compensation?
I will just give you a brief overview.
1. The first thing that you need to do is job evaluation to determine the worth of the individual to the company.
2. Secondly, see the external job market and evaluate what a person in a similar position would be getting in other companies.
3. See the internal constraints - whether your company can match the salary levels of other companies or not. If not, do an internal survey thoroughly and ensure that each job is paid as per the returns expected from the job.
4. All legal matters should be considered, e.g., EPF, Gratuity, Minimum wages (in the case of laborers), taxes, and the impact of all on the company and in the take-home salary of individuals. Every employee is more interested in the take-home salary unless the company is providing housing and other facilities.
5. Make sure to take into account every expense being incurred by the company - from housing expenses to mobile expenses, and other fringe benefits given to employees. It all adds to the CTC and is taxable to the company under FBT.
I hope the above is of help to you.
Thanks & Regards,
Puja
From India, Guwahati
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Can you be more specific as to what you want to know about compensation?
I will just give you a brief overview.
1. The first thing that you need to do is job evaluation to determine the worth of the individual to the company.
2. Secondly, see the external job market and evaluate what a person in a similar position would be getting in other companies.
3. See the internal constraints - whether your company can match the salary levels of other companies or not. If not, do an internal survey thoroughly and ensure that each job is paid as per the returns expected from the job.
4. All legal matters should be considered, e.g., EPF, Gratuity, Minimum wages (in the case of laborers), taxes, and the impact of all on the company and in the take-home salary of individuals. Every employee is more interested in the take-home salary unless the company is providing housing and other facilities.
5. Make sure to take into account every expense being incurred by the company - from housing expenses to mobile expenses, and other fringe benefits given to employees. It all adds to the CTC and is taxable to the company under FBT.
I hope the above is of help to you.
Thanks & Regards,
Puja
From India, Guwahati
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