Objectives Fairness Compliance EfficiencyInternal Alignment Comparison among the jobs or skill level inside a single organization Pertains to the pay rates for both employees during equal work and for those doing dissimilar work. Affects all three compensation objectives. External Alignment Refers to pay comparisons with competitors Twofold effect on objectives - To ensure that pay is sufficient to attract and retain employees - To control labour costs
Employee Contribution How much emphasis should be there on paying for performance ? Directly affects employee attitude and behaviour. Performance based pay affects fairness. Management Means ensuring right people get the right pay for achieving the right objectives in the right way.
Q3 How to make a paystrategy more flexible & resilient?
Pay strategy Restructuring of : - Pension’s policies - Retirement benefits - On the medical & health care expenses Negotiation with the govt. - Regarding pension & retirement benefits to be launched by govt at all the levels - Equal and fair mandatory policies for all the firms
Laying-off of non performers & acquiring fresh talented people in the management Investment in R&D & Automation Re- engineering - Focus on lean management - Effective new tech implementation for SCM Improvement/changes in variable pay performance
Reducing cost & increasing productivity by: - LDP for workers - Effective utilization of land - Better sourcing of raw materials Improving employee’s engagement activities