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By Group 6, Sectio

Kamal Joshi 140103Goutham Harikrishn

Prateek Jena 140102

Shweta Garg 140103

Shray Singhal 14010

Vedant Arora 14010

COMPENSATION TRENDS

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COMPENSATION MANAGEMENT•

Many activities combined into one• Balancing work-life relationship• A combination of monetary and non monetary benefits• For example : Bonus, profit sharing, overtime pay, Food coupons

ESOPs, HRA, stock options, etc.

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CompensationSystem

IndirectCompensation

ProtectionProgrammes Pay for time

not workedServices and

prerequisities

DirectCompensation

Base pay Merit pay Incentive Pay

Compensation Structure

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WHY COMPENSATION IS IMPORTANT?

•

Recruitment• Motivation• Retention• Compensation laws• Image building• Ensure equity• To be administratively efficient

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• India has a labour cost advantage• Pays 15-20% of US salaries at entry and

mid levels• Pays 70% of US salaries at high levels• Indian companies not ready to train

freshgraduates out of college; instead hirehigh level executives

• Inspite of a raise in pay, fixed salaryremainsat a discounted rate owing to thedepreciation of Rupee

INDU

TYPE OFCITY

Factw

Indiane

decicompe

DECIPHERCOMPENSTRENDS INCOMPARIS

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P1 : Entry levelprofessionals

E7 : Vice presidentlevel executives

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TRADITIONAL TRENDS VS. RECENT TRENDS

Traditional trends Current trends

A good amount of ‘Basic pay’ for all CTC concept to estimate the operatingmargins better

Incentives restricted only to higher levelexecutives

Variable pay dependent on the performof each employee

Guaranteed increased pay at the end of theyear

Fixed pay decreased, variable pay incr

Promotion fixed after certain number ofyears served

Promotion is performance based

Government pays are the benchmark Benchmarking at national & internationallevel

ESOP s : a common trend ESOP s have seen a reduction in its usage

Social security benefits

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LATEST TRENDS FOR NON MONETARY COMPENSA

• Corporate Credit Cards

• Cellular Phone/Laptops• Loans

• Educational benefits (Higher studies)

• Recreation, ATM, Concierge facilities

• Accommodation

• Insurance

• Flexi-time

• Wedding day/Bday gifts

• Employee referral scheme

• Maternity leave

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TRENDS FOR VARIABLE PAY PLANS• Piecework Rates• Standard Hour plans• Merit pay• Performance Bonus• Sales commision

Individual performance pay

• Gain-sharing• Team Awards & BonusesPay for team performance

• Profit Sharing• ESOPsPay for organisational

performance

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SALARY HLIKELY IN Hike in Asia Pacific

Hike in India: 10.8 %

Countries stuck on ‘and ‘ postponement’reduction.

Reasons:

1. To time compepractices alongbudget plannin

2. Rise in GDP; rrate of unempleconomic grow

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E COMMERCE SECTOR• 23-30% increase in hiring due to the recent mergers &

acquisitions; many global companies setting up back officesin India

• E-tailers are paying more than their retail counterparts

• Global players are entering Indian market and paying a fat

package to students from top notch collegesFor entry level : 8-12 lakhFor senior level : 50-75 lakhFor CEO level : 1-2 crore

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• Highest paying sector in Indian market today

• Executives leaving traditional sectors and joining e tailersdue to higher compensation provided as venture capitalistshave ploughed in money

• Hiring more at entry level by going for campus

recruitments• By Incentives and bonuses , employee retention is taken

care of

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THANK YOU.