TALENT MANAGEMENT

(Term-IV)

Mid- Report
COMPENSATION & BENEFITS

SUBMITTED BY:
(GROUP 1)
ARUSHI MAKHIJA
DAKSH ANEJA
KIRTI SIROHI
POOJA KHANDELWAL
SAMBHAV JAIN

SUBMITTED TO:
DR. MAMTA MOHAPATRA
DR. SWATI DHIR

International Management Institute, New

Delhi (2019-2021)
We are planning to do this assignment as per the following framework:
• Introduction
1. Competency
2. How it can affect talent management
• Comparison across industries
We are planning to take 2 companies in each industry and compare their
compensation and benefit strategy.
• Conclusion – impact of such strategies on the talent management
• Our recommendations
 INTRODUCTION

Compensation is invariably, in the top list of awkward yet important topics that employers
and employees discuss. For employees, compensation is personal and affects their lives in a
big way.
Compensation is particularly relevant to any organization’s strategy for managing their talent
because it affects an employee’s decision to join an organization, how they are rewarded for
performance, their development, and their decision to leave. As a result, organizations must
intentionally use compensation to promote the right employee experience and employer
brand.
In its simplest form, compensation comprises base pay, incentive pay, and perks and benefits,
creating a total rewards package.

When designing employee compensation, it’s critical to think about the total rewards package
and its effect on the employee experience. A total compensation or rewards package is a big
part of the promise employers make in their employee value proposition (EVP), even if the
EVP is not formally articulated.

People are complicated and attempting to keep them motivated through creative
compensation strategies is far more than challenging. Effective total rewards strategies must
appeal to most employees, make sense for their jobs, and encourage the behaviour and
business results that the organization wants. Thus, calibrating an effective total rewards
program requires an understanding of how all the program’s components affect various
employee perceptions, behaviours and outcomes.
Effective total rewards strategies must appeal to most employees, make sense for their jobs,
and encourage the behaviour and business results that the organization aims to achieve.
 COMPENSATION & BENEFITS ACROSS EMPLOYEE LIFE CYCLE

A total rewards/compensation package encompasses all forms of compensation that

employees receive, including perks and benefits. Base and incentive pay are the foundation
of most total rewards packages. Determining the perfect balance between base and incentive
pay isn’t an exact science and depends on many factors, from the nature of job expectations
and constraints to how accurately performance can be measured for a job.
The key to properly motivating employees through pay is to create a system that is:
• understandable
• consistent
• fair
• accurate
• within the employee’s control
 LINKING COMPENSATION AND BENEFITS TO MASLOW THEORY

When we discuss the Maslow pyramid to analyze the level of employee involvement, we can
identify what factors will improve engagement and find that the most basic needs are physical
and safety, followed by love/ownership, respect, and level of pyramid level, self-awareness.

1. Protect the most basic needs: For their employees, companies must represent the
institutions that care for them and take care of their basic needs. They must provide
services such as working health care with family members, or life insurance. This first
point discusses the basic and physical needs associated with the first level of the
Maslow pyramid.
2. Prepare for day-to-day work: In addition to basic services, the day-to-day
employee benefits have a significant impact on how employees evaluate an
organization; this often raises their level of commitment. Agreements with other
companies (telephone, transportation, consumer goods, etc.) or institutions
(education, health, recreation, retail) provide employees with access to the
maximum benefits that enhance their day-to-day operations. This second point
involves satisfying the economic and security needs, as Maslow explains in the
second section of his pyramid.
3. Remuneration performance: Linking high performance with compensation or
benefit indicator is another way to strengthen employee involvement in the
organization. In times of tight budgets, linking pay to operating procedures may be
a good idea It also helps the employee to develop his or her skills and increase his
or her value in the organization. HR teams need to set clear and achievable goals
to prevent staff reductions if the standards are too high. Benefiting the workforce,
without covering economic needs, fosters self-confidence and, third, according to
the Maslow pyramid.
4. Increase emotional compensation: The compensation budget has been
significantly reduced and wage reviews are regulated in new ways. The
organization must allocate a significant portion of its salary review budget to
identify priorities for maintenance. That is why “emotional pay checks” are now
needed, with a huge impact on workers. Companies should consider this amount
 when designing their compensation policies. This concept creates a sense of public
recognition and a sense of significance, similar to the methods Maslow describes
at the fourth level of pyramid.
5. Be prepared for the future: At high level, setting pointers that influence the future
of an employee is an attractive strategy and one of the most effective measures to
increase employee satisfaction and inclusion. In this last point, the idea of human
development and long-term involvement emerges, which is Maslow's parallel to
the need to see himself at the top of his pyramid.

Using data from respondents across a wide range of industries, geographical and
organizational sizes, we provide compensation information on basic payments, flexible
payments, benefits, strategy, distances and scope, and links between compensation,
culture, performance, and engagement.

Highlights:

• Agencies and Consultancies The priority of consultancies, agencies is customer value-

creating value that matters, communicating it to their target audience, and delivering
it to the fullest. Considering the aggressiveness of the sector, having competitive jobs
is a more probable situation. These jobs are mostly in high demand, but they lack the
money factor. Agencies are less likely to pay more than standards for them. Prime
focus of Customer Service and Retail businesses is selling consumer goods or services.
• Customer Service and Retail Customer service is not a one-time, or monetary service.
It follows the approach of providing expertise before, during and after a purchase. This
industry comprises a larger genre of roles, job descriptions, levels and bands. This is
also the reason that it becomes quite challenging to determine suitable pay and ranges
for individual positions.
• Education Educational institutions are based on the supremacy of transfer of
knowledge from educator to student. The role of an educational institution is to
provide a territory that engenders intellectual activity, piques curiosity and stimulates
discovery. In present times, where every aspect is tech-driven, times are changing in
more than a swift manner, the competing factor for educational institutions is also
changing. Now, they have to focus on attracting attention and loyalty of students and
educators simultaneously. Almost 40% of educational institutions have started to
work on upgrading their pay strategy, after contemplating the results of employee
engagement feedback.
• Energy and Utility In the energy and utility sector, there is enormous demand for
skilled people. Subsequently, more than 75 percent of Energy and Utility companies
offer variable pay. PayScale has the world’s largest database of salary information for
workers in the energy and utilities sectors, including mechanical engineers, petroleum
engineers and project engineers, as well as geologists and more.
• Engineering and Science These companies are in a race of for talented engineers.
Engineering and Science organizations often fill positions in various domains such as
chemical engineering, civil engineering, electrical engineering, mechanical
engineering and more. Companies in this sector voluntarily provide higher bonuses
than other organizations.
 • Healthcare Among the wide portfolio of services that healthcare organizations
provide, PayScale imparts the data information of pay scale nurses, physician
assistants, nutritionists, and a whole range of roles common in the health sector.
Organizations in this field are more likely to perform annual performance reviews
compared to other sectors.
• Manufacturing: The Manufacturing sector, more than any other, sees market
fluctuations for both permanent, contractual, hourly and salaried employees. The
most common job role and titles in the manufacturing are:

▪ Plant managers
▪ Manufacturing engineers
▪ Production supervisors
▪ Quality assurance supervisors
▪ Manufacturing workers,

among other related positions. What is riveting here is that almost 50% of the
companies of manufacturing sector use location-based pay ranges.

• Non-profit organizations: These are the institutions that are committed to promoting
a particular social cause or a mission. They often work with limited budgets, because
most part of it is based on contributions and donations. Therefore, in such
organizations, the most challenging role of HR is to ideate, decide and execute the
plan for what compensation they offer to new employees, and at the same time
maintain the compensation width of existing employees. It is thus, self-explanatory
that retention is the main reason that non-profit organizations work frequently to
change their compensation strategy.
• Tech for tech companies, it is the most challenging to always keep up with
compensation changes undergoing on daily basis in the market, more importantly for
high performers and skilled employees. The competitive race, especially in Indian tech
industry for talent is very vigorous. Hence, to recruit and retain the talented
workforce, it becomes imperative for organizations to offer competitive pay,
sometimes more than the market standards. This is also the rationale for the fact that
organizations in the tech industry emphasize on compensating top performers with
higher base pay increases and benefits.

INDUSTRIES

E-commerce Amazon Flipkart

Tech companies
Social media Facebook

We are planning to use both primary and secondary resources for our research.