Who are Boomerang Employees and what are the Pros and Cons of Having Them in Organizations?
What is meant by Boomerang Employees and Why They Have Become So Important Suddenly? Of late, much has been written and said about the so-called Boomerang Employees who are essentially employees who rejoin organizations that they have left earlier. In other words, Boomerang Employees, as the name implies, are staff members who “return” to the […]
After Quiet Quitting Comes Quiet Hiring! What It Is, And Why It Would Be Trending In 2023!
What Are Quiet Quitting and Quiet Hiring and Why They Matter For Corporate America Quiet Quitting was the rage for most of 2022. As the post pandemic workforce battled stress and burnout and became lethargic, many employees resorted to what is known as Quiet Quitting, where they were unwilling to go beyond and over what […]
How the Armed Forces Actualize Management Excellence
The Reason why the Military Pioneers Innovations It has often been said that the Military and the Armed Forces in the developed West pioneered many technological and managerial innovations that subsequently helped the corporate sector in those countries. For instance, the Internet was initially a Department of Defense project in the United States that was […]
How Employee Engagement helps in Change Management ?
Various independent and organisation based studies have revealed that employee engagement is the heart and soul of the change management process. Multiple researches at highly productive and reputed organisations seeking new competitive advantages in this ever changing business environment have exposed that the higher level of engagement, involvement and dedication of employees is the primary […]
Role of HR in Employee Retention
An organization can’t survive if the top performers quit. It needs employees who are loyal and work hard with full dedication to achieve the organization’s objective. It is essential for the management to retain its valuable employees who think in favour of the organization and contribute their level best. An employee who spends a longer […]
In the previous article (Part I) we looked at some of the components of compensation that are paid out to employees and the way in which these components are fixed by HR managers and companies. In this article (Part II), we shall look at some components of compensation like Basic and Variable Pay (including the sub-components of variable pay) and discuss how these are fixed by the firms when they sign off on the compensation packages to their employees.
To take the first component that is common to all packages at all levels (hence the term basic - however, it is not the same for all levels).
If we take the three sub-components of the Variable Pay -
The rationale for these components is that an employee would be better motivated to perform individually, contribute to the group to which he or she belongs and finally, perform well keeping in view the overall growth of the company. Hence, these sub components of compensation have been designed to spur the employee to excel not only in an individual capacity but as a team member and finally, a responsible employee of the company. The idea here is to discourage silo based performance and instead concentrate on all round performance.
In the articles to follow, we shall look at how employees can negotiate their compensation by following some tips that we shall provide.
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Corporate Strategies to beat the Downturn: Cutting Slack and Layoffs
February 12, 2025
