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    The document discusses compensation management frameworks. It notes that employee motivation and performance depend on good reward systems that provide both financial and non-financial incentives. Constant change and high expectations can lead to employee turnover if not properly addressed. Both rewards and remuneration must be regularly scrutinized. The document presents a framework that involves documenting positions, evaluating them, setting remuneration ranges, conducting performance reviews with goals, and providing both financial and non-financial rewards based on achievement of goals. It also discusses components of compensation packages and factors that influence compensation amounts.

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    CRM-2

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    The document discusses compensation management frameworks. It notes that employee motivation and performance depend on good reward systems that provide both financial and non-financial incentives. Constant change and high expectations can lead to employee turnover if not properly addressed. Both rewards and remuneration must be regularly scrutinized. The document presents a framework that involves documenting positions, evaluating them, setting remuneration ranges, conducting performance reviews with goals, and providing both financial and non-financial rewards based on achievement of goals. It also discusses components of compensation packages and factors that influence compensation amounts.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    2 views21 pages

    CRM 2

    Uploaded by

    ashwinis1706
    The document discusses compensation management frameworks. It notes that employee motivation and performance depend on good reward systems that provide both financial and non-financial incentives. Constant change and high expectations can lead to employee turnover if not properly addressed. Both rewards and remuneration must be regularly scrutinized. The document presents a framework that involves documenting positions, evaluating them, setting remuneration ranges, conducting performance reviews with goals, and providing both financial and non-financial rewards based on achievement of goals. It also discusses components of compensation packages and factors that influence compensation amounts.

    Copyright:

    © All Rights Reserved
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    of 21

    Compensation

    Management
    • N.R Narayanan Murthy
    Co founder of Infosys
    FRAMEWORK OF COMPENSATION POLICY
    • Employee motivation and performance management depend on good systems that offer
    both financial and non-financial rewards (non-monetary rewards).

    • Constant change and high expectations are taking their toll in some organizations, as
    well as in industry and government generally. Sometimes this is shown in employee
    turnover.

    • Sometimes it is hidden because of job insecurity.

    • Rewards and remuneration must be scrutinized. Employee motivation and performance


    are critical. Non-monetary rewards can be as important as monetary rewards.

    • Thus, an integrated system is required such as the following diagram represents


    Document the Position

    Evaluate the Position

    Determine the
    Remuneration Range

    Conduct Performance
    Appraisal- Set Goals Review the Position
    documentation

    Commence Review
    Change the Value of
    Position (if Required)

    Review Achievement
    of Goals Review the Position
    documentation

    Determine Financial and Non-


    Financial Rewards
    Pay For Person

    Highest Paid Indian Actor in


    2023

    Highest Paid Indian


    Cricketer in 2023
    Compensation Strategy
    Compensation Philosophy
    Components of Compensation
    Components of Compensation
    Component Taxable Income

    Basic Fully Taxable

    House Rent Allowance Fully Taxable

    Supplementary Allowance Fully Taxable

    Conveyance Partially Exempt

    Lunch coupons Fully Taxable

    Medical reimbursements Partially Exempt

    Leave Travel Allowance Partially Exempt

    Company’s contribution to PF Partially Exempt

    Telephone reimbursement Fully Exempt

    Car Reimbursement Fully Exempt

    Annual Bonus Fully Taxable

    Gratuity Partially Exempt


    Factors influencing Compensation
    Highest-paid CEOs in India.

    Thierry Delaporte:
    According to Business Today, Wipro CEO Thierry Delaporte’s salary in FY 2022-23
    was $10 million (Rs 82 crore approx.).
    Delaporte took home $1.6 million (Rs 13 crore approx.) in salary, $4.17 million (Rs 34
    crore approx.) in deferred compensation, $1.3 million (Rs 12 crore approx.) in variable
    pay, and the remaining $2.9 million (Rs 23 crore approx.) in other incentives.

    Salil Parekh:
    In FY 2023, Parekh's base salary was Rs 6.67 crore, while the bonus
    he got for his performance was Rs 18.73 crore.

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