Dear Experts,
I am working in an It company, as a HR Executive, my boss is asking me to create a KRA with Incentive basis for Purchase Executive.
means his work should be based on incentives.
we follow the policy for 50% fixed and 50% variable for sales depart.
Now for Purchase Executive/ how should i Set the KRA with target and incentive.
ex: I selected a candidate for Purchase Executive at Salary package of Rs. 30,000 PM(Which includes Rs.15000 fixed and Rs. 15000 Variable).
On what ground/ parameter…I can frame his variable part of Rs. 15000/-
Please share your input....boss is continuously asking...when i am implementing this in system.
Your response will be greatly appreciated.
Regards
Dimple
From India, New Delhi
5I am working in an It company, as a HR Executive, my boss is asking me to create a KRA with Incentive basis for Purchase Executive.
means his work should be based on incentives.
we follow the policy for 50% fixed and 50% variable for sales depart.
Now for Purchase Executive/ how should i Set the KRA with target and incentive.
ex: I selected a candidate for Purchase Executive at Salary package of Rs. 30,000 PM(Which includes Rs.15000 fixed and Rs. 15000 Variable).
On what ground/ parameter…I can frame his variable part of Rs. 15000/-
Please share your input....boss is continuously asking...when i am implementing this in system.
Your response will be greatly appreciated.
Regards
Dimple
From India, New Delhi
Hi,
Don't fix variable 50%, according to me you do one thing
1. Calculate total CTC
2. On CTC take fixed 70% and Variable 30%.
3. As you told Purchase Executive salary is 30000 so you may consider in Top Level Managers and on gross you give him 25% to 35%( Variable Pay).
or
Follow the option no. 2
From India, Mumbai
Don't fix variable 50%, according to me you do one thing
1. Calculate total CTC
2. On CTC take fixed 70% and Variable 30%.
3. As you told Purchase Executive salary is 30000 so you may consider in Top Level Managers and on gross you give him 25% to 35%( Variable Pay).
or
Follow the option no. 2
From India, Mumbai
hi,
thanks for your prompt response...
can you please suggest me on what parameter i can set him for variable..30%.
if he will get 70% salary fixed..so how i structure his KRA for 30% variable basis.
Please help me out.
Regards
Dimple
From India, New Delhi
thanks for your prompt response...
can you please suggest me on what parameter i can set him for variable..30%.
if he will get 70% salary fixed..so how i structure his KRA for 30% variable basis.
Please help me out.
Regards
Dimple
From India, New Delhi
experts.., Please help me out... Please suggest ..Fixed and Variable salary formula for Purchase Executive profile.
From India, New Delhi
From India, New Delhi
Hi,
Its Very Simple
assume that employee CTC is 500000 and in that Fixed CTC is 4,00,000 and Remaining 1,00,000 is Variable Pay
CTC Break Up
Gross-33333
Basic-16666
HRA- 6666
Coveyence-1000
Spl.Allowance=9001
Variable Pay Is=8333
EE PTDed =200
EE PF share=780
ER PF Share=780
Net salary=32353( Employee is not applicable for Under ESI Act)
CTC=34113
Hope It may help you......
From India, Mumbai
Its Very Simple
assume that employee CTC is 500000 and in that Fixed CTC is 4,00,000 and Remaining 1,00,000 is Variable Pay
CTC Break Up
Gross-33333
Basic-16666
HRA- 6666
Coveyence-1000
Spl.Allowance=9001
Variable Pay Is=8333
EE PTDed =200
EE PF share=780
ER PF Share=780
Net salary=32353( Employee is not applicable for Under ESI Act)
CTC=34113
Hope It may help you......
From India, Mumbai
hi,
thanks for your input..
my question is quite different...we can better understand it thru an example:
Designation: Sales Manager
Salary: 40,000PM
Target: 40,000*7 = 2,80,000 PM
Payout-
Slabs % of Target Incentives
10% 5 1-76% Rs.7000 on completion of upper limit of target
20% 76.1-101% Rs.14000 on completion of upper limit of target
30% 101.1%-above Depends on the figure achieved
101.1% Achievement pay will Rs.40,000.
Net Payout – Rs.40,000 (fixed)+Rs.40,000 (Variable)=Rs.80,000pm.
this calculation is for sales guy in our company.
Now my boss is looking for same calculation for "PURCHASE MANAGER"
So ...my question is on what basis..i can set his/her KRA (Fixed & Variable)
Regards
Dimple
From India, New Delhi
thanks for your input..
my question is quite different...we can better understand it thru an example:
Designation: Sales Manager
Salary: 40,000PM
Target: 40,000*7 = 2,80,000 PM
Payout-
Slabs % of Target Incentives
10% 5 1-76% Rs.7000 on completion of upper limit of target
20% 76.1-101% Rs.14000 on completion of upper limit of target
30% 101.1%-above Depends on the figure achieved
101.1% Achievement pay will Rs.40,000.
Net Payout – Rs.40,000 (fixed)+Rs.40,000 (Variable)=Rs.80,000pm.
this calculation is for sales guy in our company.
Now my boss is looking for same calculation for "PURCHASE MANAGER"
So ...my question is on what basis..i can set his/her KRA (Fixed & Variable)
Regards
Dimple
From India, New Delhi
On what basis we can set his kra , his job is not target based like a sales profile, we want to create a profile like sales profile where we can set his salary in the form of Fixed+Variable. but yes for that i need to set his kra like sales profile, the information i am looking for is what i can include in his KRA which can be target based so that i can accordingly provide him salary in the form of Fixed+Variable.
Your prompt response would be highly appreciable.
Thanks,
Dimple
From India, New Delhi
Your prompt response would be highly appreciable.
Thanks,
Dimple
From India, New Delhi
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