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
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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
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Hi,
Don't fix the variable at 50%. According to me, you should do the following:
1. Calculate the total CTC.
2. On the CTC, allocate 70% to fixed pay and 30% to variable pay.
3. Since you mentioned that the Purchase Executive's salary is 30000, you may consider this within the Top Level Managers' range. Offer a variable pay of 25% to 35% on the gross salary.
or
Follow option number 2.
From India, Mumbai
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Don't fix the variable at 50%. According to me, you should do the following:
1. Calculate the total CTC.
2. On the CTC, allocate 70% to fixed pay and 30% to variable pay.
3. Since you mentioned that the Purchase Executive's salary is 30000, you may consider this within the Top Level Managers' range. Offer a variable pay of 25% to 35% on the gross salary.
or
Follow option number 2.
From India, Mumbai
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Hi,
Thank you for your prompt response. Can you please suggest to me on what parameter I can set for the variable at 30%? If he will be receiving a fixed salary of 70%, how should I structure his KRA for the remaining 30% on a variable basis?
Please assist me with this.
Regards,
Dimple
From India, New Delhi
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Thank you for your prompt response. Can you please suggest to me on what parameter I can set for the variable at 30%? If he will be receiving a fixed salary of 70%, how should I structure his KRA for the remaining 30% on a variable basis?
Please assist me with this.
Regards,
Dimple
From India, New Delhi
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experts.., Please help me out... Please suggest ..Fixed and Variable salary formula for Purchase Executive profile.
From India, New Delhi
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From India, New Delhi
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Hi,
It's very simple. Assume that an employee's CTC is 500,000, with a fixed CTC of 400,000 and the remaining 100,000 as variable pay.
CTC Breakdown:
- Gross: 33,333
- Basic: 16,666
- HRA: 6,666
- Conveyance: 1,000
- Special Allowance: 9,001
- Variable Pay: 8,333
- Employee PTDed: 200
- Employee PF share: 780
- Employer PF Share: 780
Net salary is 32,353 (The employee is not applicable for coverage under the ESI Act).
Total CTC is 34,113.
Hope this information helps you.
From India, Mumbai
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It's very simple. Assume that an employee's CTC is 500,000, with a fixed CTC of 400,000 and the remaining 100,000 as variable pay.
CTC Breakdown:
- Gross: 33,333
- Basic: 16,666
- HRA: 6,666
- Conveyance: 1,000
- Special Allowance: 9,001
- Variable Pay: 8,333
- Employee PTDed: 200
- Employee PF share: 780
- Employer PF Share: 780
Net salary is 32,353 (The employee is not applicable for coverage under the ESI Act).
Total CTC is 34,113.
Hope this information helps you.
From India, Mumbai
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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
Acknowledge(0)Amend(0)
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
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On what basis can we set his KRA? His job is not target-based like a sales profile. We want to create a profile similar to a 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 a sales profile. The information I am looking for is what I can include in his KRA that can be target-based so that I can accordingly provide him with a salary in the form of Fixed+Variable.
Your prompt response would be highly appreciated.
Thanks,
Dimple
From India, New Delhi
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Your prompt response would be highly appreciated.
Thanks,
Dimple
From India, New Delhi
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