Dear Anuradha
Reading your e-mail I found that your organization has already a pay structure and now you are trying to introduce variable pay. You know what introducing variable pay in an new company is much easier than a old one. Because an old company has already their salary structure and introducing VP may result in dissatiscation within the employee as it definitely will decrease monthly income if you do not conisder a raise or you may accept that people will resign for the changes. You have to keep in your mind some important thing: whether management want to keep best employees intact or they want to keep people of/from a specific position/department, or they want to reduce their overhead expense and don't bother who goes out or comes in. You also to have to keep in mind that the variable pay for every department/level or positions has to be different and also will depend on their cotribution to the company and the level of effect of dissatisfaction. Moreover, the scope of claiming the variable pay has to be more clear and specific. For example setting variable pay for marketing is much easier than to set variable pay for customer service department or for software department.
I have not highlighted on the percentage or calculation as i found that you already have them. I hope the above will be some help to you.
Regards
Sajid
From Bangladesh
Reading your e-mail I found that your organization has already a pay structure and now you are trying to introduce variable pay. You know what introducing variable pay in an new company is much easier than a old one. Because an old company has already their salary structure and introducing VP may result in dissatiscation within the employee as it definitely will decrease monthly income if you do not conisder a raise or you may accept that people will resign for the changes. You have to keep in your mind some important thing: whether management want to keep best employees intact or they want to keep people of/from a specific position/department, or they want to reduce their overhead expense and don't bother who goes out or comes in. You also to have to keep in mind that the variable pay for every department/level or positions has to be different and also will depend on their cotribution to the company and the level of effect of dissatisfaction. Moreover, the scope of claiming the variable pay has to be more clear and specific. For example setting variable pay for marketing is much easier than to set variable pay for customer service department or for software department.
I have not highlighted on the percentage or calculation as i found that you already have them. I hope the above will be some help to you.
Regards
Sajid
From Bangladesh
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Creating a Competitive Salary Structure.doc
Salary Structure.zip