Challenges for a good comp and ben in current indian scenario
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Transcript of Challenges for a good comp and ben in current indian scenario
COMPENSATION AND BENEFITTOPIC - CHALLENGES TO
HAVING A GOOD COMPENSATION AND
BENEFITS IN THE COMPANIES IN THE PRESENT INDIAN
CONTEXT
PRESENTED BY- MANISHA KUNWAR, DEEPA MAKHIJARAHUL CHAUDHARY, JUANITA KASBE
ANKITA , BARKATUNNISAHR BATCH, ITM SION
Summary
Brief about C&B Evolution of India’s benefits System Importance of Compensation Challenges for C&B in Indian
Scenario Current Trends in C&B Compensation Survey Report by
Deloitte
Brief – Compensation and Benefits Compensation - Direct or Indirect monetary
and non monetary rewards given to employees on the basis of the value of the job, their personal contribution, and their performance. While making these payments one should be alive to the governing legal regulations.
Million people go to work - Drive to acquire money, prestige, powers......The Motivation factor
Compensation/ Money - Primary Motivator Fastest changing field in HR to find new ways
of rewarding employees performances
Phase I (1950s-1970s). This was when policy was based on two principles, namely that employer–employee participation for long-term funding is
important and that it is the State’s responsibility to provide health care and other benefits for the people
(especially government employees and the rural population).
Phase II (1980s-2000). This was when the first National Health Policy was introduced to encourage private
initiatives in health-care service delivery, while at the same time widening access to publicly funded primary
health care. This mainly benefited the urban employee.
Phase III (post 2000). The liberalization of the insurance sector in order to provide new avenues for health financing and a redefinition of the role of the
State from being only a provider to being a financier of health services as well (to cover the entire urban
population).
Evolution of India’s Benefits System
Why does Compensation become Important?
A Sound Compensation Strategy
Define your compensation philosophy. Link compensation to your overall
business strategy. Change the culture and reinforce it with
compensation. Reward the behaviours that drive the
results. Think total compensation. Measure your return on invested
payroll.
Challenges.....for Good C&B Strategy
Limited Talent, especially in emerging economies or for “Hot Skills”
Managing workforce diversity Aligning C&B to employee needs Increased flexibility in C&B programs
e.g. Expatriateswith “Split pay requirements, flexible
benefits programs, etc How to distribute scarce
compensation & benefits
Continued....
Having a “Credible” performance management system that support “Performance Based Pay” concept
Balancing the issue of:
Linking Rewards to Performance vs. Building a Team Culture
Not getting on the bandwagon of what is the latest C&B scheme / idea / strategy / tool....
But about identifying what is right for the organization, its
strategy, competitive position & the contribution required from
the workforce.
What Should Company be Aware of for a good C&B?
Link with Objectives and culture Establishing pay for performance
standard Motivate employee
Current Trends in C& B
Compensation is now viewed as the total “cost to company,” (CTC) rather than an employee’s net pay alone as it helps to understand the costs and the operating margins.
Variable pay based on individual performance is the norm, and a larger percentage of the Indian salary is based on performance.
Organization performance also is factored in while structuring salary increases.
Basic, guaranteed pay has seen a gradual reduction.
Continued….
Benchmarking against organizations, both nationally and internationally, has become common.
Employee stock options (ESOPs) that were, a few years back, considered as valuable compensation components have ceased to be so given the erratic nature of the stock market and the lock-in periods.
Non-taxable benefits, which increased the net “take-home” of an employee, are now subject to the Fringe Benefits Tax (FBT), and so organizations are forced to take second looks at these components.
Retirement benefits are left to what is mandated by the government.
Pension benefits and other similar social security benefits are not on the radar screen of compensation experts in India today, but this component could be under significant discussion and speculation in the coming years.
SURVEY REPORT – DELOITTECOMPENSATION REPORT
.......Thank You!!!!!!!