HRM Strategies in Non Profits and How Similar and Different are They from Corporates
The Differences between HRM Strategies in Corporates and Non Profits As the name implies, non profits are those entities that are engaged in social activities and which do not exist to make profits. Instead, they are established and run with the purpose of serving society and zero sums accounting wherein the intake equals the cost […]
Joining Groups on Linkedin
In today’s time, LinkedIn has become a great tool to network. And because of the Group concept, you can get access and network with more and more people than an individual people search. If you know how to make optimum use of this group feature, it is very powerful tool. Now let’s get into a […]
What are Employee Training Manuals ?
Employees need to be trained on a regular basis to acquaint them with the latest developments, technologies, softwares and make them ready for unforeseen circumstances. Employee training manuals are small handbooks which are given to employees by training managers for their future reference. Employee training manual should include relevant information which would help employees enhance […]
Advantages and Disadvantages of Job Analysis
Though job analysis plays a vital role in all other human related activities but every process that has human interventions also suffers from some limitations. The process of job analysis also has its own constraints. So, let us discuss the advantages and disadvantages of job analysis process at length. Advantages of Job Analysis Provides First […]
Why Professionals and Students Must Invest in Specialized Skills
The Second Machine Age and its Implications for Manufacturing and Services Many Asian countries benefited from outsourcing of manufacturing and IT (Information Technology) services from the West. Prominent among these beneficiaries are China, which became the workshop of the world and India, which became the back office of the world. Indeed, this wave of outsourcing […]
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.
Your email address will not be published. Required fields are marked *
Corporate Strategies to beat the Downturn: Cutting Slack and Layoffs
February 12, 2025
