Challenges for a good comp and ben in current indian scenario

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Challenges for a good comp and ben in current indian scenario

  1. 1. HAVING A GOOD COMPENSATION AND BENEFITS IN THE COMPANIES IN THE PRESENT INDIAN CONTEXT PRESENTED BY- MANISHA KUNWAR, DEEPA MAKHIJA RAHUL CHAUDHARY, JUANITA KASBE ANKITA , BARKATUNNISA HR BATCH, ITM SION
  2. 2. Summary  Brief about C&B  Evolution of India’s benefits System  Importance of Compensation  Challenges for C&B in Indian Scenario  Current Trends in C&B  Compensation Survey Report by Deloitte
  3. 3. Brief – Compensation and Benefits  Compensation - Direct or Indirect monetary and non monetary rewards given to employees on the basis of the value of the job, their personal contribution, and their performance. While making these payments one should be alive to the governing legal regulations.  Million people go to work - Drive to acquire money, prestige, powers......The Motivation factor  Compensation/ Money - Primary Motivator  Fastest changing field in HR to find new ways of rewarding employees performances
  4. 4. Phase I ( s- s). This was when policy was based on two principles, namely that employer–employee participation for long- term funding is important and that it is the State’s responsibility to provide health care and other benefits for the people (especially government employees and the rural population). Phase II ( s- This was when the first National Health Policy was introduced to encourage private initiatives in health- care service delivery, while at the same time widening access to publicly funded primary health care. This mainly benefited the urban employee. Phase III (post The liberalization of the insurance sector in order to provide new avenues for health financing and a redefinition of the role of the State from being only a provider to being a financier of health services as well (to cover the entire urban population). Evolution of India’s Benefits System
  5. 5. Why does Compensation become Important?
  6. 6. A Sound Compensation Strategy  Define your compensation philosophy.  Link compensation to your overall business strategy.  Change the culture and reinforce it with compensation.  Reward the behaviours that drive the results.  Think total compensation.  Measure your return on invested payroll.
  7. 7. Challenges.....for Good C&B Strategy  Limited Talent, especially in emerging economies or for “Hot Skills”  Managing workforce diversity  Aligning C&B to employee needs  Increased flexibility in C&B programs e.g. Expatriates with “Split pay requirements, flexible benefits programs, etc  How to distribute scarce compensation & benefits
  8. 8. Continued....  Having a “Credible” performance management system that support “Performance Based Pay” concept  Balancing the issue of: Linking Rewards to Performance vs. Building a Team Culture  Not getting on the bandwagon of what is the latest C&B scheme / idea / strategy / tool.... But about identifying what is right for the organization, its strategy, competitive position & the contribution required from
  9. 9. What Should Company be Aware of for a good C&B?  Link with Objectives and culture  Establishing pay for performance standard  Motivate employee
  10. 10. Current Trends in C& B  Compensation is now viewed as the total “cost to company,” (CTC) rather than an employee’s net pay alone as it helps to understand the costs and the operating margins.  Variable pay based on individual performance is the norm, and a larger percentage of the Indian salary is based on performance.  Organization performance also is factored in while structuring salary increases.  Basic, guaranteed pay has seen a gradual reduction.
  11. 11. Continued….  Benchmarking against organizations, both nationally and internationally, has become common.  Employee stock options (ESOPs) that were, a few years back, considered as valuable compensation components have ceased to be so given the erratic nature of the stock market and the lock-in periods.  Non-taxable benefits, which increased the net “take-home” of an employee, are now subject to the Fringe Benefits Tax (FBT), and so organizations are forced to take second looks at these components.  Retirement benefits are left to what is mandated by the government.  Pension benefits and other similar social security benefits are not on the radar screen of compensation experts in India today, but this component could be under significant discussion and speculation in the coming years.
  12. 12. SURVEY REPORT – DELOITTE COMPENSATION REPORT
  13. 13. .......Thank You!!!!!!!

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