Professional Documents
Culture Documents
2 - Team Compensation
2 - Team Compensation
01 02 03 04
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TOTAL REWARDS FRAMEWORK
Components of Total Remuneration
Total Rewards Framework
Total Rewards strategy seeks to meet the extrinsic, intrinsic
and social needs of the employee holistically
Fixed: fixed salary and benefits – internal worth of the
employee, market competitiveness to attract and retain,
maintain lifestyle and security needs
Variable: short-term and long-term – reward performance,
maximize shareholder value, achieve specific business
objectives, sales incentives, cash based incentives, equity
incentives, retention bonus, deferred pay
Compensation Practices
Competitive pay packages are important so that top talent is
attracted, motivated and retained in the long-term to build a
successful organization.
Supporting career growth and work-life balance, as well as
providing training and certification support, is important 21
TOTAL REWARDS FRAMEWORK
Guaranteed Cash Basic salary
Fixed bonus House rent allowance
Leave Fare Assistance Conveyance Allowance
Newspaper allowance Utilities allowance
Furniture allowance Medical allowance
Entertainment Special allowance
allowance
Mobile phone + bills
Driver’s salary Total Cash Compensation
Car & fuel benefit
Performance bonus
Total Remuneration Deferred bonus
Provident Fund
Group Life Insurance
Gratuity
Medical benefit
Subsidized meals
Club Membership 22
TOTAL REWARDS FRAMEWORK
Data Representation
The compensation data is presented in the form of percentiles to
maintain confidentiality and to give a true representation of the
market’s remuneration trends and practices:
Term Definition
10th Percentile: The figure below which 10% of the relevant data fall
25th Percentile: The figure below which 25% of the relevant data fall
50th Percentile: The figure above and below which 50% of the
relevant data fall
66th Percentile: The figure below which 66% of the relevant data fall
75th Percentile: The figure below which 75% of the relevant data fall
90th Percentile: The figure below which 90% of the relevant data fall
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TOTAL REWARDS FRAMEWORK
According to our framework the percentile ranking gives an
indication into how competitive the remuneration practices are
when compared with the market data as follows:
Percentile Ranking
TR lies at greater than TR lies at greater than TR lies at greater than TR lies at less than 25th
75th percentile making 50th percentile making 25th percentile making percentile making
compensation highly compensation market compensation compensation highly
market competitive competitive uncompetitive uncompetitive
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TOTAL REWARDS FRAMEWORK
Data Representation
25th Percentile (25th %ile)
The data point that is higher than 25% of a continuous data set
when sorted from smallest to largest data. This is also known as
the first quartile (Q1)
0 1 2 3 4 5 6 7 8 9 10
Data Point
Median (50th %ile)
The data point that is higher than 50% of a continuous data set
when sorted from smallest to largest data. This is also known
as the second quartile (Q2)
0 1 2 3 4 5 6 7 8 9 10
Data Point
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TOTAL REWARDS FRAMEWORK
Data Representation
75th Percentile (50th %ile)
The data point that is higher than 75% of a continuous data set
when sorted from smallest to largest data
This is also known as the third quartile (Q3)
0 1 2 3 4 5 6 7 8 9 10
Data Point
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TOTAL REWARDS FRAMEWORK
Fixed Pay Variable Pay Other Benefits
Retiral & Statutory Benefits* - PF , ESI , Bonus and Gratuity ► Deferred Pay
70-85%
30-15%
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TOTAL REWARDS FRAMEWORK
Organizational Impact
The different elements of the Total Rewards Framework may
have the following organizational impact:
Fixed Pay Variable Pay Other Benefits
Leave Benefit
Data shows that leaves are given on both; working and
calendar days
All leaves provided on the basis of working days converted
into calendar days
The most prevalent practice is of 30 days annual leave, 10
medical leave, casual 12 days, 90 days of maternity leave and
30 days of hajj leave
A small percentage of comparators offer leave encashment,
however this is allowed at the time of separation
(termination/retirement)
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TOTAL REWARDS FRAMEWORK
Retirement & Terminal Benefit
Group Life Insurance Provident Fund Gratuity
Normal Accidental Eligibility Contribution Eligibility
Market Self, Spouse, & Self Self, Spouse, Through Self, Spouse,
Children Administered & Children Insurance & Children
Medical Benefits
Few comparators in the market offer Medical OPD. The most
prevalent practice is to self administer OPD where
entitlement varies from either self, spouse and children
Hospitalization covers self, spouse, and children and in most
cases major tests, dentistry, day-care surgeries are also
covered
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HAVE YOU UNDERSTOOD
• Meaning of Compensation?