The Rise of the Knowledge Worker
Who is a Knowledge Worker ? A knowledge worker is one who uses knowledge as the capital for work and who uses brain power rather than brawn power to get the job done. In other words, knowledge workers “think for a living”. A knowledge worker is also one who uses creative thinking, out of the […]
How HR Managers Must Deal with Legal and Regulatory Challenges in Organizations
What Happens When Employees Sue their Employers? By definition, corporates deal with contractual exchanges between the various entities that make up the internal and external systems in which they exist. Whether it is dealing with customers, or suppliers and vendors, and more importantly, the employees, corporates undertake all these transactions that are covered by legal […]
What is an Assessment: Definition, Objective and Principles
Assessment itself can be defined and interpreted in several ways like financial, educational or even psychological assessment however, for the sake of the current discussion we shall stick to the context of HR and define assessments within it. Assessments are systematic methods of gathering data under standardized conditions and reaching a conclusion regarding the knowledge, […]
Components of Emotional Intelligence
Emotional intelligence helps us to create and nurture healthy bonds in an organization and it ensures both personal as well as organizational success. By emotional intelligence we mean the proficiency of an individual to identify his own emotions as well as emotions of other people, to differentiate between various emotional states and to categorize them […]
What is Ghosting and How it Disrupts the Hiring Process and Ways to Tackle this Menace
What is Ghosting and Why it has Become a Serious Problem for All Stakeholders We often hear the term, Ghosting, in Human Resources or HR Literature and Practice used in context of how jobseekers who have been recruited or called for interviews not showing up either on the joining date or leaving without completing the […]
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
