EVALUATION OF THE PROCESS UNDERTAKEN BY Mr.

PADMANABHAN IN
DESIGNING THE TOTAL REWARDS SYSTEM:
Mr. Padmanabhan needed to design the Total Rewards System that would be both
financially feasible and non-devastating to the employees.
Thus, progressing towards the same, the following steps were undertaken:
Sharp demarcations in Roles and Responsibilities:
For total rewards system or any performance management system to be in place effectively,
defining the job role and responsibilities to be held, is of paramount importance.
Mr. Padmanaban found that within the same team, there were repetitive responsibilities
and no bounded or hard-spelled job competencies. There were no organized processes for
any of the operations in the team and job roles were filled and upgraded in contingency
basis.
Thus, he proposed a structured way of organizing teams by integrating similar set of roles
under one unit which would report to the corresponding unit head.
Key responsibility areas, required for defining Key Performance Indicators for the reward
system, were pristinely defined. Job descriptions comprising the objective and the purpose
of the job and the desired or the expected deliverables were developed.
Well-formulated Compensation structures and Fringe benefits:
To inculcate a sense of trust, commitment and sense of procedural and organizational
justice, which is vital, for high performance of employees, a well-laid out and organized
compensation structure plays a major role.
Mr. Padmanaban found that there was no existing system of compensation and the benefits
were distributed in a discretionary manner, which could be understood as an interplay of
personal biases and even the salary structure was on-need basis.
The compensation and benefits offered in the organisation were found to be way below the
standards in the market.
Gratuity to be paid via a National Insurance organization was not paid to retired employees
as SIPL failed to pay the same to the insurance company.
Bare minimum regulatory requirements were not complied with, no statutory compliances
were articulated and wages were not adhering to the Minimum Wages Act, 1948. Due to
chaotic structure, incentives were mistakenly given as a part of monthly wages.
Therefore, Mr. Padmanabhan speculated that job evaluations and restructuring of salaries
and benefits were to be spelled.
After defining the jobs, he clearly evaluated the same to promote internal equity in the
company, which would aid in formulating fair compensation structures and grading
structure.
He reinstituted the obsolete medical insurances and term life insurances.

Design of TOTAL REWARDS STRATEGY:

Mr. Padmanabhan compared the market and competitors' standards for compensation to
review the prevalence of rewards. Since obtaining such data was then accounted to be
merited by Suveer (CEO).
Mr. Padmanabhan was very sensible to adopt the cost-effective measure of obtaining the
data from top job portals and from his networks in HR fraternity to extrapolate an
estimation of the market standards.
Since a one-leap modification would adversely impact the salary budget, Mr. Padmanabhan
devised a 3 year plan to restructure the compensation across the organization with
incremental changes
wherein the modifications present in the first year of the plan would be implemented only
across the key performers to ensure their retention.
Net pay would be protected by increasing statutory payments thus increasing the salaries to
account for the statutory buffer.
Variable compensation had to be sequenced to the performance management system to be
put in place.