Compensation Benefits Planning

Contents
Compensation and Benefit Meaning ............................................................................................................................................................ 1

Terms related to Compensation .................................................................................................................................................................... 1
Factors affecting Compensation & Benefit planning ............................................................................................................................ 8
Balancing Internal Equity.............................................................................................................................................................................. 10
Balancing external equity.............................................................................................................................................................................. 11
Balancing individual equity .......................................................................................................................................................................... 11
Objectives of Compensation Planning ..................................................................................................................................................... 12
Strategies to reduce compensation turnover ....................................................................................................................................... 14
1. Outsourcing..................................................................................................................................................................................... 14
2. Offshoring ........................................................................................................................................................................................ 14
3. Increasing probation period .................................................................................................................................................... 14
4. Creating temporary position ................................................................................................................................................... 14
5. Incentivizing managers for not raising manpower requests..................................................................................... 14
6. Employee leasing .......................................................................................................................................................................... 15
7. Increasing working hours ......................................................................................................................................................... 15
8. Performance pay........................................................................................................................................................................... 15
9. Hiring interns and Paying stipends ...................................................................................................................................... 15
10. Commission-based pay ......................................................................................................................................................... 15
11. ESOPs ............................................................................................................................................................................................ 15
12. High variable, low fixed ........................................................................................................................................................ 16
Compensation and Benefit Meaning
Compensation is a systematic approach of providing monetary value to employees in exchange of work
performed. Some components of compensation are Basic, HRA, etc.
On the other hand, Benefit is the non-monetary value given to employees in exchange for work performed.
Insurance, food allowance etc form part of the benefits.
Terms related to Compensation

Given are a few terms related to Compensation and Benefits used in the industry. However, please note that
these might have some differences depending on the country and statutory requirements in those countries.
Wage vs salary
When workers are paid on the basis of hours of work it is called Wage. On the other hand, if the workers are paid
a fixed monthly amount irrespective of the number of daily hours, it is called a salary.
Gross Salary
Gross salary is the total amount of money that the employee has made while working on the job. It is calculated
without applying the deductions.
Net salary
It is the amount of money an employee gets after all forms of deductions and taxes are applied on the Gross
salary. Net salary is also known as Take-home.
CTC
Also called Cost to Company it is the total amount of money the organization spends on the employee. As the
name suggests CTC or Cost to Company can include anything that costs to company.
Basic
The most basic income of an employee before any other allowance is added or anything deducted. Other
allowances and deductions often depend on the Basic amount paid. It is usually calculated as 30% - 50% of the
Gross Salary. Industry standard is 40%.
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Ex-gratia
Ex-gratia is most often used in a legal context. When something has been done as Ex- gratia, it has been done
voluntarily, out of kindness or grace. In law, an Ex-gratia payment is a payment made without the giver
recognizing any liability or legal obligation.
Difference between Bonus Vs. Ex-gratia?

Bonus is a payment made beyond the salary and perks and usually linked to productivity or performance. In the
context of business, it literally means “Extra” which is more than regular salary or wage. It is a statutory
obligation for an employer to pay the employees “Bonus” at a fixed rate
Can Ex-gratia be included in the annual CTC?
Annual CTC means the total cost incurred on an employee in a year. In a management perspective, the employer
may consider it for arriving at a cost to employ so many employees at any given point of time. It is purely at the
discretion of the management.
When you consider the character of the payment (being Ex-gratia) it should not be a part of CTC. It may be so, in
a particular year when it is paid. If it is going to be recurred every month/year, it loses the character of being
Exgratia and can be called as some other earning head which can be included in CTC and paid regularly.
Perquisites
What are perquisites?

Perquisites are the small benefits provided by the employers in addition to the normal salary at a free of cost or
concession rates. Perquisites are taxable in the hands of employees. However, they are rules for valuation
perquisites.
What is a Perquisite and how is it taxed?
Perquisites are emoluments or benefits received from an employer, in addition to salary. For example, rent-free
accommodation, free electricity, gas and water supply. Free domestic servant provided/paid for by the employer
include:
a) Value of rent free accommodation provided to the assessor by his employer.
b) Value of concession in rent of accommodation provided to the assessed by his employer.
c) Amount payable by an employer directly or indirectly to effect an assurance on the life of the employee or to
effect a contract for an annuity, other than payment made to recognized provident fund etc.
d) Amount paid by an employer in respect of any obligation which otherwise would have been payable by the
employee, for example - payment of income-tax.
What are allowances?
An allowance is defined as a fixed amount of money given periodically in addition to the salary for the purpose
of meeting some specific requirements connected with the service rendered by the employee or by way of
compensation for some unusual conditions of employment. It is taxable on due/accrued basis whether it is paid
in addition to the salary or in lieu thereon.
OTHER MISCELLANEOUS CONCEPTS
Employee
An employee is a person hired to perform a job. Employee in the payroll perspective is said to be a person who is
hired to perform a certain job and on accomplishing the job receives remuneration from the employer.
As per the Employees Provident Fund & Miscellaneous Provisions Act, 1952 “employee” means any person who
is employed for wages in any kind of work, manual or otherwise, in or in connection with the work of an
establishment and who gets his wages directly or indirectly from the employer, and includes any person.
Payroll
Payroll is a record of all the payments made towards salary / wage / remuneration of each and every employee
in an organisation. Regardless of the number of employees, an employer should maintain the details pertaining
to all the payments made towards the business. Managing a record of salaries, wages, deductions, bonus made to
employees is called as a Payroll.
Payroll Processing
Processing a payroll is a Herculean task in the present day scenario. HR activities include selecting the
candidates, getting them interviewed, fixing the scale of salary, recruitment, processing salary, training,
appraisal etc. Amongst all the tasks mentioned above, payroll processing of salary needs more supervision as it
has to be done in time coupled with accurateness. While processing the salary of employees, many factors have
to be considered like, employee’s present days, leaves, standing instructions (if any) etc. Also, payroll processing
must be done keeping in view of present day’s statutory, MIS requirements etc., and the person who is taking
care of payroll processing must ensure the statutory compliance.
Payroll Software
Payroll software means an application used to run the payroll processing. In simple words, payroll software
automates the processing of payroll by reducing the paperwork etc., for HR personnel. Nowadays, everything is
getting computerized and so is the payroll processing. By using payroll automation software, user can have the
following benefits:
▪ Saves time.
▪ Reduces paperwork.
▪ Faster processing of details and pay cheques can be disbursed in time.
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▪ Accurateness.
▪ Going a step ahead, software companies are offering people with customized software which meets
exclusive needs & demands of the customer.
Salary Month
Usually, every month salary calculation starts in the last week of a month and salary is paid at the first week of
succeeding month. Salary month is the month for which salary is being calculated and Pay month is the month in
which payment is done.
Difference between Reimbursements and Allowance:
Allowance is an amount which is given to the employees, irrespective of the issue whether they spend it or not.
Reimbursement is the amount which the employee will get only after spending the money for hospitalisation,
traveling etc.
Salary Heads
Salary of an employee is constituted by salary heads. The salary heads can be broadly categorized into two types.
One is earning heads and the other is deduction heads. Basic, DA, HRA, Conveyance, Allowance etc., form the
earning heads. Deductions like PF, ESI, PT & TDS, EMI for a loan etc., form the deduction heads.
Salary Rate
Salary rate is a fixed rate defined for paying the salary to employees. It is a fixed amount based on which the
earned salary is derived.
Consider an example where the employee’s salary is Rs. 5,000/-. If the employee has 2 days of LOP, the salary for
2 days has to be reduced in the total salary. 2 days salary would come up to $334
5,000/30 days = $167
167 * 2 days (LOP) = 334
5,000 – 334 = 4,666
Here $ 5,000 is the salary rate and $ 4,666 is the salary earned.
Attendance Calculation
Attendance in general perspective means the act of being present. While processing the payroll of an employee,
no. of days attended by the employee is calculated. Based on the no. of days attended, the salary of the employee
can be derived.
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Overtime
Overtime can be defined as working beyond the normal working hours. It is the work done in addition to the
regular working hours (usually 8 hrs or as defined by company rules) by an employee. For working overtime, in
return, employees will get compensation by way of cash or compensatory off.
Salary Advance
Salary advance means to pay the amount (salary) before it is due. In some organisations, employees are
provided with this facility of advance for festivals etc., Salary Advance is given under different names, such as,
Festival Advance, Vehicle loan advance etc. The amount paid as advance is recovered from employee’s salary.
Payroll Loan
Loan is a temporary aid of finance provided to the employee that must be repaid in certain time along with
interest. Organisations with a tie up with other financial institutions can make arrangements for loans to its
employees. For which, an employee has to give a standing instruction to repay the loan amount with interest
from salary every month. Loans can be given for purchasing a house, car etc.
Insurance
Insurance is an agreement / contract made between two parties in which one party agrees to compensate
another party for any contingent loss or damage occurred. Insurer is a company selling an insurance policy. And
Insured is the person or entity buying the insurance.
Insured person has to pay some amount of premium for which in turn the Insurer will pay the loss amount in
case of any damage or loss occurred (if any in future).
Group Insurance
Group insurance is an insurance policy offered for a group of people (such as Employees of a company) at a
reduced rate. The premium amount to be paid can be cut from the employee's salary and paid to the insurance
company.
Salary Saving Scheme (SSS)

The Salary Saving Scheme popularly known as SSS, provides an easy and convenient way to save some amount
every month on a regular basis under a scheme. Employees can make arrangements with their employer to pay
the premium amount every month by deducting from salary.
Salary Increment
Salary Increment is the process of increasing the salary of an employee after a certain period of work in a
company. The increment process & percentage differs from one organisation to the other.
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Employee Bonus
Bonus is the amount given or paid in addition to what is usually expected or due. The objective of this act is to
provide for the payment of bonus (linked with profit or productivity) to the persons employed in certain
establishments. Any establishment employing more than 20 employees on any day during an accounting year
should pay the bonus to its employees.
Supplementary Salary
Supplementary salary is the amount paid for the employees as an adjustment or arrears other than regular
salary. It is not a regular salary but is given as an adjustment of salary. Usually, supplementary salary comes into
the picture, when an employee gets some rise in the salary and the increment amount is paid in the latter
months.
Tax Deduction at Source (TDS)
TDS means Tax Deducted at Source. In payroll perspective, deducting the employee’s income tax to be paid to
the government from salary is TDS. The employer has to deduct and remit the full tax arising out of the
employee's salary. For this, the employer has to make the estimation at the beginning of the financial year as to
what would be the probable income and income tax for each employee based on the earnings, deductions and
investments proposed to be made by such employees. This total tax is to be deducted from their salaries over
the 12 months between April and March.
Pay Slip
A slip of paper included while paying the salary is called a Pay slip. It records the employee’s earnings,
deductions, tax etc. Or in simpler words, it is a basic reference document for information and transparency on
the monthly financials between employee and employer.
Salary Sheet
Salary sheet is a record of salary details of all employees in an organisation.
Bank Statement
Bank statement is a summary of transactions that occurred over a period of time pertaining to an account.
Statement of Total Income

Statement of Total Income is a report which shows the details of income, deductions, total income, tax on total
income, surcharge details, Tax payable etc., pertaining to an employee. This statement of income is issued by
employers to their employees for reference. It bears the details pertaining to Income from salary, VI A
deductions, Gross total income, Surcharge, Tax payable etc.
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Salary Certificate
Salary certificate shows the salary details of an employee. It is issued by an employer to an employee. In most of
the cases, a salary sheet is issued to facilitate the employees in getting loans from banks or other financial
institutions.
Employee ID card
Employee ID card is a proof that states the bearer is an employee of a certain company. Employee ID card
contains the details of Employee name, DOB, Employer Logo & Contact details etc. It can be used to provide as a
photo identity proof for Mobile connections or in opening bank accounts etc.
Interest Calculation
Many companies have a practice of giving Salary advance to its employees and some organisations even offer
loans to employees on rules that they have defined. Considering the loan / advance amount given, interest is
calculated on these amounts given to employees. Various methods have been adopted in the industry for
calculating the interest.
Some levy simple interest, while some levy compound interest. Some organisations collect the interest during
the final recovery and some have very clear definitions. Loan / Advance will be divided into equal monthly
installment at the time of loan sanction process itself. It is important to note that, if the rate of interest recovery
on bigger amounts is less than State Bank of India’s rate of interest, then the difference is considered as the
perquisite to employee and the income tax is payable on such amounts.
Types of Attendance
Generally, employee’s attendance can be of 2 types.
Daily Attendance: This type of attendance is for the employees who are working on Daily basis.
Hourly Attendance: This type of attendance can be for employees who are working on an hourly basis.
Company Holidays
Considering the statutory requirement, there are certain holidays which are to be given for employees. However,
most of the companies usually would volunteer to give a holiday on Foundation day or Founder’s day. While
some companies declare it as a holiday and some companies make it as a non-working day by conducting
celebrations like, cultural activities and prize distributions etc. Again, it all depends on the company’s policy.
Weekly Holidays
Weekly holiday is the weekly off provided for employees. Organisations usually do consider Sunday is a weekly
holiday. For some corporate organisations, MNCs etc., who follow 5 days’ week method, Saturday & Sunday are
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considered as weekly off. For some companies who hire employees on a shift basis, rotating weekly holidays are
provided.
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Compensation & Benefits Planning is about forecasting the compensation requirements of an organization and
then taking measures to reduce the total compensation cost incurred towards paying the salaries of all
employees by the organisation. This can be done only after considering the various factors that can impact the
compensation of an employee.
Factors affecting Compensation & Benefit planning

As it goes with any type of planning, there are a few factors that affect the Compensation & Benefit being paid to
any employee and thus affect the planning. Few of such factors that organizations need to keep in mind when
planning for the compensation of an employee are:
➢ Qualification: How qualified the employee is has an impact on the compensation being paid to them. An
employee who is more qualified or coming from a better institute is likely to be paid better.
➢ Experience: If the job demands, a more experienced person is likely to be paid better when compared to
someone with lesser experience.
➢ Job Description: Even the role or what job they are supposed to do determines the amount of salary
being paid. For example, a person with more tasks to do will ideally have a higher salary.
➢ Skills: An employee’s salary is also determined by the skills they are bringing to the job. Somebody with
additional technical or managerial skills could expect to get better salary when compared to another
person with no such skill.
➢ Nature of work: Somebody who is supposed to work in difficult conditions should be paid more than
another person working in average or regular conditions.
➢ Designation: An employee at a higher designation is usually paid more than somebody with lower
designation.
➢ Company policy: Compensation is also determined through the policies of the organizations. A few
organizations have aggressive compensation policies and pay more than what anybody else is paying.
While, at the same time, there also are organizations with policy to pay slightly lower in comparison.
➢ Performance of organization: the organization’s performance further has an impact on how much the
organization will pay. A company performing very poorly usually would pay less when compared to the
same organization in its profitable days.
➢ Location: What location is the organization in? An organization in Bengaluru would be expected to pay
higher when compared to the same organization in a small town like Dharwad or Mysore.
➢ Cost of living [inflation]: For the same job, cities with higher inflation rates would be expected to have
higher salaries when compared to those with lesser inflation rates.
➢ Government policies: All government policies regarding the salaries of the employees must be
followed and thus affect the compensation of employees. These policies could be the statutory
compliances that all organizations must follow. There could also be state-specific policies that
organizations in that particular state should follow.
➢ Competition / market standard: Organizations must stay competitive regarding the salaries they are
paying. An IT company can’t pay 2 lac rupees when all similar IT companies are paying above 5 lac for
similar jobs.
➢ Manpower availability: Another factor affecting compensation planning is the availability of
manpower. It means if labour is readily available, companies could plan to pay lower salaries when
compared to something for which labour is hard to find. Or manpower is not easily available.
➢ Performance of individual: Finally, apart from all the stated reasons, not every employee is paid the
same as a better performing employee can always expect to be paid better than one who is not
performing.
Now, in the context of Compensation and Benefits, these given ‘factors’ are called ‘Equities’.
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A few of the equities given above are in control of the organization and are called Internal Equities.
Some equities are outside the organization and not in its control. These are termed as External Equities.
And finally, there is a factor that is in control of the individual employee i.e how he performs and is called as
Individual Equity.
In the above-mentioned equities,
Internal equities External equities Individual equity
Performance of organization Location Performance of an individual
Qualification Cost of living [inflation]
Experience Government policies
Job Description Manpower availability
Skills market standard
Nature of work Competition
Designation
Company policy
C&B planning is essentially about balancing these equities. Any C&B planning professional must balance each of
these Internal, External and Individual Equity. In other words, they must be able to justify the differences in
salaries of the employees within and outside the organization based on these equities only.
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Balancing Internal Equity
To balance the Internal Equity such as experience, skills, education, etc., two methods are used:
❏ Salary slab with step increment
❏ Salary slab with grade range
Let us look at each of these methods:

Salary slab with step increment:
1. This is a method where a slab is created with salary increments in steps.
2. Given below is an example of this structure:
12000 - 13600 - 15000 - 17200
3. Salary can be paid in steps only, i.e. an employee can get either 12000 or 13600, or 15000, or finally
17200. No payment in between those amounts is applicable. This usually represents the basic salary
4. After 17200 the employee gets into the next grade and the slab for that grade would be applicable.
5. Most pay structures include several grades for different designations & levels.
6. Step increments are common with union positions where each job is predetermined through collective
bargaining.
7. Also practiced in the education sector or government organizations where there’s not too much
competition and people are not running for small hikes.
8. By using this, organizations can accommodate factors such as Designation, experience, etc and justify
hirings based on internal equity.
However, since it is not dynamic enough it does not aid in negotiations. Thus, it fails in competitive
environments where employees quit organizations for small differences in salary.
Therefore, another method exists that is called as

Salary Slab with Grade Range.
1. A range of salary is provided for similar designations. Eg. 4,00,000 - 6,00,000
2. One can choose any salary between the lower limit and the upper limit depending on the internal equity.
3. It provides greater flexibility for negotiation.
4. However even in grade range, a median needs to be maintained. The median in the above range could be
5,00,0000. Effort is made to provide salaries around the median to employees working in the same
designation or role and not deviate too much from it. Median manages human emotions and drives
performance.
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Balancing external equity
External equities can be balanced by getting more information from:
• Understanding different research reports published by survey companies like
– William Mercer,
– Mc Kinsey,
– Hewitt Associates
• May include average salary, inflation indicators, cost of living indicators, salary averages.
• The salary surveys provide market data and the compensation planners study these to understand and
decide what organizations should pay.
• Reports by wage boards and pay commissions also provide data on what the other organisations are
currently paying based on which decisions are made.
Balancing individual equity

Individual equity challenges the idea of fixed and closed ended pay structures. It talks about open ended
structures based on performance and corresponding incentive structure. Whoever performs better gets better
incentive, thus allowing to pay according to the individual work done.
Open-ended incentive structure allows employees to stay motivated with the earning potential sometimes going
beyond 100% target achievement. Motivated employees perform better thus enabling the organization to get
more work done through them. Example:
Sl.No. Target achieved Additional earning
1 100% - 125% 2%
2 125% - 175% 3%
3 Above 175% 5%
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Objectives of Compensation Planning
Compensation planning meets the following objectives:
1. Recruit and retain
2. Increase motivation and morale
3. Reward and encourage performance
4. Balance internal, external and individual equity
5. Reduce compensation turnover
Do organizations reduce compensation turnover [overall spending on the compensation of all

employees across the organization]?
Manpower cost is one of the largest costs for many organizations especially those in the service sector. And yes,
organizations use various methods and strategies to reduce the compensation turnover. And that saving can be
used towards the expansion of the organization.
A study conducted on the compensation of employees at various levels from different industries showed the
following change in the salaries of employees in 2006 over 2005.
Entry level: - 6.45%
Junior Management: +1.02%
Mid-level: -4.44%
Senior Management: +9.01%
Looking at the above numbers, -10.89% and +10.03%, it seems that there was neither a major hike nor a
reduction in the compensation turnover. However, if we draw the organization’s structure and pay attention to
the distribution of employees throughout, it could show a different perspective.
Below diagram shows an organization structure and distribution in general. Approximately 60% employees are
found to work at the entry level positions, 25% at the Junior Management positions, 12% at Mid-level positions
and finally 3% at the Sr. Management positions.
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SM=3%
MM=12%
JM=25%
EL=60%
Thus, according to the above discussion, we find that organizations do attempt to work towards reducing the
compensation turnover for employees.
How do organizations do this?
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Strategies to reduce compensation turnover
Following are a few of the strategies that organizations can use to reduce compensation turnover:
1. Outsourcing
A strategy where an organization offering a service or developing a product, gives the work to
another organization and gets the work done at a lesser manpower cost. Example: IT companies
outsource their training requirements to training companies that specialize in Learning & Development.
2. Offshoring
Organizations send out a part or whole of their work to different locations, usually where labour is
available at lower cost. Example: Many of the companies in US, UK have their call centers in India, China
as it proves to be more economical.
3. Increasing probation period

Mostly organizations pay either no compensation or a reduced compensation during the probation
period thus saving on the compensation cost. And they tend to increase this period as far as possible so
that they do not have to start paying full compensation and are able to save maximum cost on
compensation.
For example, Company ‘C’ hired Employee ‘A’ at a CTC of 5lpa. However, according to the appointment
letter, A would have to stay on probation for 4 months. After the 4 months, A’s performance would be
reviewed and would become an employee of the company. During the probation period, he would be
entitled to compensation of 3lpa and would not enjoy any leaves. This meant that all his absences would
be taken as loss of pay.
Once the 4-month period ends, his probation is extended by another 3 months. Thus, the organization
keeps A from earning full compensation and reduces Compensation turnover.
4. Creating temporary position

Organizations also have a practice where they create temporary positions, for example, at first level
management positions and get any performing employee to fill that position. Since it is just a temporary
position the company does not need to pay the full salary. Also, the employee continues to perform well
in the hope that the organization will soon make them as permanent in the new position.
5. Incentivizing managers for not raising manpower requests

Managers need to raise manpower requests whenever they want an employee in their teams. The
recruitment team then works to fulfill those raised requests and closes the position. Once the employee
is hired all their salary cost must be borne by the company and becomes a cost. However, if the manager
does not raise a request but gets things done through the existing team, organizations tend to
incentivize such a manager. For sure, the incentive is not as high as the salary of the outgoing employee.
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6. Employee leasing
Organizations also tend to use employee leasing companies to hire employees for shorter periods of
time. However again, these employees’ payroll, etc are not managed by the hiring company thus saving
huge amounts of money.
7. Increasing working hours

Sometimes what organizations do is increase working hours to get the same number of man-hours from
lesser employees.
For example:
10 employees - 8 hours - 80 man-hours of work
In the example here, the company is able to save 20% of compensation cost for one employee. But can
be done for thousands of employees too, which would be a huge amount.
8. Performance pay
This is another strategy where organizations put a part of the total CTC as Performance pay that is paid
only when the individual delivers a certain level of performance.
For example, an employee E has a CTC of 5lac rupees. Where 1lac is the performance pay. This 1lac is
paid only when E achieves 100% of the target, else they get only a part of the 1lac. Or even NO
PERFORMANCE PAY!
9. Hiring interns and Paying stipends

Many companies prefer to hire interns for many tasks. Interns usually join organizations for short
durations and only to get their certificates. It forms a great option for getting rudimentary works done at
practically zero cost. Or they might choose to pay a stipend that is still much lesser compared to a
permanent employee.
10. Commission-based pay

Sometimes organizations hire employees to be paid commissions based on the number of sales they
make. Usually prevalent in the insurance sector, companies pay the employees only a commission when
they make a sale.
11. ESOPs
Mostly for senior management employees, ESOP [Employees Stock Options Plan] is offered as a portion
of their total compensation. These are stocks and not liquid cash. And the employee can encash these
stocks only after a certain period of time, usually three or more years.
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Thus, the company manages to retain the employee while also ensuring their performance.
12. High variable, low fixed

As a payslip can contain several statutory and non-statutory aspects, offering more variable and lower
fixed components in compensation & benefits also helps an organization to save manpower cost.
Variables are paid only when certain conditions are met, mostly a certain level of performance is
achieved. This might not be possible for all employees all the time. So, adding more components under
the variable category and lesser under fixed helps the company to save manpower cost.
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Contents

Compensation and Benefit Meaning ............................................................................................................................................................ 1

Terms related to Compensation

Difference between Bonus Vs. Ex-gratia?

Can Ex-gratia be included in the annual CTC?

What are perquisites?

What is a Perquisite and how is it taxed?

OTHER MISCELLANEOUS CONCEPTS

Difference between Reimbursements and Allowance:

Salary Saving Scheme (SSS)

Tax Deduction at Source (TDS)

Statement of Total Income

Factors affecting Compensation & Benefit planning

In the above-mentioned equities,

Internal equities External equities Individual equity

Performance of organization Location Performance of an individual

Qualification Cost of living [inflation]

Experience Government policies

Job Description Manpower availability

Skills market standard

Nature of work Competition

Let us look at each of these methods:

Therefore, another method exists that is called as

• Understanding different research reports published by survey companies like

Balancing individual equity

Sl.No. Target achieved Additional earning

Do organizations reduce compensation turnover [overall spending on the compensation of all

How do organizations do this?

3. Increasing probation period

4. Creating temporary position

5. Incentivizing managers for not raising manpower requests

7. Increasing working hours

9. Hiring interns and Paying stipends

10. Commission-based pay

12. High variable, low fixed

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