Corporate Strategies to beat the Downturn: Cutting Slack and Layoffs
February 12, 2025
Most of the organizations do not feel much about managing their talent. Here is why they should – Typically, labor accounts for about 65 % of every business in any industry. The percentage is more for labor intensive businesses for example those in manufacturing. The performance difference between talented and lesser talented employees is huge. […]
The New Normal of Job Insecurity and Joblessness In recent months, we have been reading and hearing a lot about how Middle Level Managers and Senior Managers in the IT (Information Technology) sector are being laid off. Further, we are also seeing reports about how even those in supposedly high positions in the Industry have […]
How do you think an organization runs? With the help of people who contribute in their own way to accomplish tasks and achieve goals of the organization. The individuals who spend their maximum part of the day at the workplace, striving hard to reach to a conclusion benefiting them as well as the organization are […]
An organization is a place to work and not a battle field where employees would fight with each other. One needs to treat his/her fellow workers well, understand each other’s expectations for a healthy relationship and maximum output. The employees must be comfortable with each other and work together as a team. Remember there is […]
Following factors play a crucial role in increasing the efficiency of employees at workplace. Clearly defined roles and responsibilities Employees need to have well defined roles and responsibilities at the workplace. Individuals need to be clear as to in which all areas they need to contribute their level best and what all skills would help […]
In the previous sections, we looked at the components of the compensation and how each is used to assess the relative importance of an employee as far as remuneration is concerned. In this article, we look at some of the factors that determine how much compensation is to be paid out to the employee by looking at the issue from the perspective of the employer. The subsequent article would take a look at how the employee can influence the compensation setting process with negotiation and bargaining.
From the perspective of the employer, the factors that affect compensation are:
Further, many start-ups give their employees ESOP’s or Employee Stock Option Plans wherein the employees can redeem their stocks after the lock-in period.
These are some of the factors that determine the compensation to be paid to the employee from the perspective of the employer. This is not an exhaustive list but an indicative one and as the module progresses, we shall be revisiting some of these factors along with adding additional information. The next article would talk about how employees can negotiate with the employer for better compensation and perks.
Your email address will not be published. Required fields are marked *