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IT staffing Performance Enhancement Program (PEP)

2 May 2018

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Objective of PEP

1. Reward high performance disproportionately

2. Link incentives to value added to the company and


cost to the company

3. Raise the performance bar to create a high


performance work ethic

4. Share the gains made due to high productivity

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Incentive scheme - Recruiters

Recruiter should make 1.5 times her / his monthly total salary as gross margin to
Eligibility qualify for incentive payout. Gross margin is monthly billing including taxes less
monthly CTC of associate

If gross margin earned by the recruiter per month is

1.5 to 2 times monthly salary 2 to 2.5 times monthly Above 2.5 times
Eligible salary monthly salary
amount

10% of monthly gorss 12% of monthly gross


8% of monthly gorss margin earned
margin earned margin earned

1. Hired associate should have completed 3 months with the client with full billing
Payout
criteria
2. Recruiter should be in active rolls of the company at the time of payout

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EXAMPLES: Incentive scheme - Recruiters

CASE 1
Recruiter salary per month (A) 22,000
Scenario 1 Scenario 2 Scenario 3
Total billing value of hires made in the month (B) 180,000 100,000 250,000
Total salaries of associates producing this billing value (C.) 140,000 40,000 225,000
Gross Margin (D) = (B) - (C.) 40,000 60,000 25,000
Times salary earned (E.) = (D) / (A) 1.82 2.73 1.14
% of margin payable as per policy (F) 8% 12% 0%
Eligible Incentive for the month (F) * (D) 3,200 7,200 -

CASE 2
Recruiter salary per month (A) 35,000
Scenario 1 Scenario 2 Scenario 3
Total billing value of hires made in the month (B) 180,000 300,000 200,000
Total salaries of associates producing this billing value (C.) 150,000 225,000 140,000
Gross Margin (D) = (B) - (C.) 30,000 75,000 60,000
Times salary earned (E.) = (D) / (A) 0.86 2.14 1.71
% of margin payable as per policy (F) 0% 10% 8%
Eligible Incentive for the month (F) * (D) - 7,500 4,800
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Tips to earn high incentive - Recruiters

Improve sourcing
Negotiate hard to
capability to
keep salaries low
onboard high
and margins high
value candidates

Increase Choose the right


productivity per candidates who
month, every will stay for a
month long time
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Team Leaders’ Incentive Scheme
1. Eligibility: 70% of recruiters reporting into TL should make incentive in
the month
2. Eligible amount: 25% of total incentive all recruiters working with the TL

Examples:
Scenario Scenario Scenario
1 2 3
Number of recruiters reporting in to TL (A) 4 6 10
70% of the same, rounded up for eligibility criteria (B) 3 5 7
Number of recruiters earning incentives in the month (C.) 4 2 8
Eligible for TL incentive? Yes No Yes

Total incentive earned by all recruiters in the team for the month (D)
20,000 60,000 40,000
TL incentive eligibility per month (E.) = 25% * (D)
5,000 - 10,000

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Tips to earn high incentive – TLs

Help recruiters perform. You win


when they win.

Encourage team work for team


success.

Have ownership for a larger team.


The more the team earns, the more
you earn.

No room for non performance.

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Incentive Scheme for AMs

Based on client handled – Growth over last year


• Revenue (by increasing business with client)
• Gross Margin (by increasing bill rates, reducing salaries)
• EBIDTA (by increasing delivery productivity)
• PBT (by billing and collecting on time)

Each AM will have different targets based on client handled

Specific targets will be communicated by Supaul in the next two


weeks

Will be paid through the variable pay structure

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Look forward to…

Special time
Special R&R based incentive
programs for schemes for
consistent high specific
performers requirements
from clients

An environment A client centric,


where we all high
care for each performance
other and help work culture
each other that celebrates
succeed its success

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Thank You!

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