Compensation Structure

Compensation Structure should be designed after doing a proper Job Evaluation and taking into
consideration the A’ction’ values as well as the ‘Moral’ values.

Salary Breakup can be done in the following manner:

 A specific amount of fixed pay as basic salary

 A certain amount of Variable pay which may be based on:

Individual Performance

Company Performance

Responsibility Held

PA based compensation

 Besides this, Indirect benefits can also be provided in the face of:

Health Benefits

Travel Allowance

Accommodation

Roadmap
 Individual Goals must be aligned with organizational goals
 Compensation must be decided keeping the Job Evaluation in mind
 Different Weightage must be assigned for different activities bases on their importance for
the organization
 Redesigning compensation structure with both fixed and variable pay embedded into it

Key Aspects of PA based on Consultant’s recommendation and Class

discussion
 Developing a strong overall performance lifestyle comparing and compensating employees
based totally on their performance as well as of the organization
 Emphasizing more on ‘Action Value’ rather than ‘Moral Value’.
 Fixed pay linked solely to an character employees' fulfillment over previous years
 A 360 degree feedback of the employee prior to the compensation decision
 Making the compensation package, a basket of fixed, variable as well as indirect payables.
 Variable pay of as high as 70% of the total compensation