Hello, Can anybody guide me how to design compensation philosophy for an organization?? Thanks
From India, Jaipur
From India, Jaipur
hi puja,
to know the actual answer, it will take full time work over several months...
let me share a brief snapshot:
1. Standard position description (refered to as JD in normal language): one of the finest resources is "O net"
2. job evaluation: read minimum two different systems, good examples are Hay point factor, job grading...
for job grading, check any of the govt depts for definitions/ salary levels etc...
for hay point factor, am afraid i cannot share copyright info...
its an exhaustive version of how we compare jobs in real life eg education/ experience levels/ information complexity/ span of control/ budgets and so on...(to give a brief indication there are 24 compensable factors & 4-10 levels on each factor)
3. salary survey: this helps us in taking care of "external equity".. ie in layman terms what others are paying for
4. Wage arbitrage on a global level: hiring stats/ industry studies reveal patterns in global equity eg nurses are reqd in a particular country abroad, the home country will feel the shortage and salaries will rise.. on the contrary, in the place of posting with coming of expat staff locals will face competition...
5. technology: ITES is a good example and spans across almost every known function...
6. Income tax regulations
7. social complainces eg pf/e si/ bonus etc
8. individual motives: there are 9 career anchors. we know the priorities by a scientific test "RSI"
9. business needs of the company: every company is unique (refer to swot analysis)
and so on....
we have a cutting edge methodology which takes care of all the variables mentioned above..
its known as "cafetaria or flexible benefits" plan
am a certified compensation and benefits manager (CAMI) with exposure in EMEA/ APAC regions..
feel free to raise specific queries..
From India, Delhi
41to know the actual answer, it will take full time work over several months...
let me share a brief snapshot:
1. Standard position description (refered to as JD in normal language): one of the finest resources is "O net"
2. job evaluation: read minimum two different systems, good examples are Hay point factor, job grading...
for job grading, check any of the govt depts for definitions/ salary levels etc...
for hay point factor, am afraid i cannot share copyright info...
its an exhaustive version of how we compare jobs in real life eg education/ experience levels/ information complexity/ span of control/ budgets and so on...(to give a brief indication there are 24 compensable factors & 4-10 levels on each factor)
3. salary survey: this helps us in taking care of "external equity".. ie in layman terms what others are paying for
4. Wage arbitrage on a global level: hiring stats/ industry studies reveal patterns in global equity eg nurses are reqd in a particular country abroad, the home country will feel the shortage and salaries will rise.. on the contrary, in the place of posting with coming of expat staff locals will face competition...
5. technology: ITES is a good example and spans across almost every known function...
6. Income tax regulations
7. social complainces eg pf/e si/ bonus etc
8. individual motives: there are 9 career anchors. we know the priorities by a scientific test "RSI"
9. business needs of the company: every company is unique (refer to swot analysis)
and so on....
we have a cutting edge methodology which takes care of all the variables mentioned above..
its known as "cafetaria or flexible benefits" plan
am a certified compensation and benefits manager (CAMI) with exposure in EMEA/ APAC regions..
feel free to raise specific queries..
From India, Delhi
Thanks a lot Mr. Rana.
It was indeed helpful. Can you please help me with any format for designing this philosophy...actually I have got a project on designing it from organization, to start with I can design an stadard one...but problem is that i had not clue about it.
So need a format for better understanding..
It would be a great help.
Rgds,
Puja
From India, Jaipur
It was indeed helpful. Can you please help me with any format for designing this philosophy...actually I have got a project on designing it from organization, to start with I can design an stadard one...but problem is that i had not clue about it.
So need a format for better understanding..
It would be a great help.
Rgds,
Puja
From India, Jaipur
puja,
the scope covers almost the entire Comp & Ben domain...
let me know on how important is it for you and how much time do you wish to devote.
for starters, sit with someone who is adept in payroll for half a day ....that is the basic minimum level..
you will need to supplement with self study on various labour laws/ direct taxes etc
for a slightly higher level, you can pick a course |certified compensation n benefits manager" from middle earth consultants.. they give a discount to students
for higher end: pick courses from Hay group, they were avl in UAE, they were very exp there "17k riyal" almost 2.5lacs for a course.. check with them for courses avl in india
last and best, you need exposure on real life working in transnational company...
From India, Delhi
the scope covers almost the entire Comp & Ben domain...
let me know on how important is it for you and how much time do you wish to devote.
for starters, sit with someone who is adept in payroll for half a day ....that is the basic minimum level..
you will need to supplement with self study on various labour laws/ direct taxes etc
for a slightly higher level, you can pick a course |certified compensation n benefits manager" from middle earth consultants.. they give a discount to students
for higher end: pick courses from Hay group, they were avl in UAE, they were very exp there "17k riyal" almost 2.5lacs for a course.. check with them for courses avl in india
last and best, you need exposure on real life working in transnational company...
From India, Delhi
Dear Puja,
In addition to the contribution made by Mr. Surya Vrat Rana, please find my suggestions, for your project attached below.
Determining Salary Philosophy
Compensation and salary guidelines
Kindly note, these are your point of reference , you would need to inculcate information to make it relevant to the company you are required to present it for. Please consider sharing the bottlenecks that you would face while implementing the relevant information. We look forward to hear from you.
From India, Mumbai
In addition to the contribution made by Mr. Surya Vrat Rana, please find my suggestions, for your project attached below.
Determining Salary Philosophy
Compensation and salary guidelines
Kindly note, these are your point of reference , you would need to inculcate information to make it relevant to the company you are required to present it for. Please consider sharing the bottlenecks that you would face while implementing the relevant information. We look forward to hear from you.
From India, Mumbai
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