1. CRITERIA IN COMPENSATION
Law of supply & demand
Prevailing wages
Ability to pay
Governmental factor
Standard & cost of living
Productivity
Bargaining power
Job requirements
2. DIVERGENT POLICIES HELP
To pay minimum wages
To pay more than prevailing wages
To pay higher wages
To pay competitive wages
3. COMPENSATION SCENARIO IN IT
SECTOR-POLICIES
The growth rate of recruitment is 14.5%
The average increase in the salary in 2006 was 16%
Salary offered based on
education,experience,position & skill
4. AVERAGE SALARY OFFERED IN
IT SECTOR BASED ON
EXPERIENCE
10+
Years 7-10
5-7
2-5
0-2
0 55
5 110 15
Salary(in
5 0
5. TOP TEN HIGHEST SALARY
PRAYERS IN INDIAN IT SECTOR
• HCL Infosystems Limited
• Hexaware Technologies
• RMSI Private Limited
• Cadence Design Systems
• Tata Consultancy Services
• Aztecsoft Limited
• Nucleus Software
• Induslogic
• Kanbay International Inc
• Cybage Software Private Limited
6. COMPENSATION
POLICIES IN
INSURANCE SECTOR
Policies cover the following
Accidental Insurance
Medical Insurance
Medi claims
Family health Insurance
Diabetes Insurance etc
Policies involve
Basic salaries
Perks
Allowances
Accomodation etc
7. AVERAGE SALARY OFFERED IN
INDIAN INSURANCE SECTOR
BASED ON EXPERIENCE
12+
4-9
Years
1-3
0-1 Salary(in lakhs)
0 2 4 6 8
8. TOP PLAYERS OF THE
INSURANCE SECTOR
• Life Insurance Corporation
• New York Life
• Prudential
• Met Life
• Birla Insurance
• Kotak Mahindra
• ICICI
• HDFC
9. COMPENSATION POLICY AT
ENTRY LEVEL-INSURANCE
SECTOR
LIC
ICICI Prudential
New York Life
Insurance
Met Life Insurance
In lakhs
Birla Insurance
0 2.5
0.5 1 1.5 2 3
11. COMPENSATION POLICY IN IT
ENABLED SERVICES
Policy is designed to attract young talents
Policy considers high attriition rate
High average salary
Compensation is target based
Compensation don’t cover job security.
Average salary offered by top players at entry level is
from 1.5 to 3 lakhs
For top management lucrative monetary & non
monetary benefits are offered.
12. IT ENABLED INDUSTRIES WITH
BEST COMPENSATION POLICY
Microsoft
Oracle
IBM
HCL
Infosys
Satyam
Sify
Wipro
LG
Samsung
13. COMPENSATION POLICIES IN
TELECOMMUNICATION SECTOR
Policies cover the following
Annual bonus
House rent allowance
Mobile allowance
Transportations
Paid vacations
Travel leaves etc
Average salary at entry level ranges from 0.5 to 2.5 lakhs
Average salary at managerial level ranges from 5 to 40
lakhs,based on experience.
14. TELECOMMUNICATION SECTOR
WITH BEST COMPENSATION
POLICY
Tata Teleservices
Reliance Communications
Bharti Airtel
Ericcson
Motorola
16. PRODUCTIVITY PHILOSOPHY-
ASSUMPTIONS
Use of updated tools,techniques & machineries
Optimum production
Minimising the unit cost of production
Lower price of goods
Expanded market
Increased income from sales
Profit sharing with employees
Utilising profit to regenerate process
17. PURCHASING POWER
PHILOSOPHY-ASSUMPTIONS
Good compensation to workers
Increased purchasing power of the large work force.
Effective demands for goods & services
Stimulation of future production.
18. GROWTH OF SERVICE INDUSTRY
Tourism sector is growing at the rate of 8%
Good compensation encourage tourists pouring into
holiday spots.
Average income of people have improved a lot
It helped to attain national prosperity
People expect quality service & they are ready to
pay for it
20. NON IMPLEMENTATION OF PHILOSOPHY- CONSEQUENCES OF PAY
DISSATISFACTION
Strike
Desire for Grievances Absenteeism
more pay
Search for a
higher paying
jobs
Turnover
Pay dissatisfaction Lower Absenteeism
Attractivene Job
ss of job
dissatisfaction
Psychological
withdrawal
Poor mental
Health health
21. COMPENSATION & PERFORMANCE MODEL
Feedback
Employee sets
Performance is
Expectations Employee considers
rewarded
& goals Equity in
compensation
Employee sets new goals & expectations
Based on performance
22. MINIMUM WAGE
It is provided for maintenance of life plus for
preservation of the efficiency of worker
23. MINIMUM WAGE PAID TO
Workers working in
• Agricultural sector
• Cement working establishments
• Bakery,Dairy products
• Chemicals
• Construction activities
• Transport Corporation
• Ice factories,cold storages
• Laundry sevice
• Textile Industry
• All shops & other establishments
24. MINIMUM WAGE IN INDIA
Applicable to labourers & workers
The Minimum Wage Act,1948 prevents labour exploitation.
It varies from state to state.
Change in wage rate-(per day)
Rs 35 in 1996
Rs 40 in 1998
Rs 45 in1999
Rs 66 in 2004
Rs 80 in 2007
25. MINIMUM WAGE IN DIFFERENT
STATES-W.E.F. JUNE,2008(Per
day)
Delhi 156 140
Uttar Pradesh 143.87 113.70
Rajasthan 91 83
Orissa 100 80
Tamil Nadu 158 29
West Bengal 100 81
Gujarat 115 50
Punjab 125 96
Manipur 79.40 72.40
Madhya Pradesh 101 93
26. FAIR WAGE
Equal to the rate prevailing in the same trade
& in the neighbourhood & equal to the
predominant rate for similar work throughout
the country,
27. LIVING WAGE
Higher than fair wage,provides for bare
essentials plus frugal comforts.
28. Living wage is concerned with
The needs of the workers & their families
Cost of living
Social security benefits.
29. WAGE DIFFERENTIAL
An element that works as wage scale
reflecting the average schedule of worker’s
pay that takes into account the performance
of related tasks or services
34. INTER FIRM DIFFERENTIAL-THE
MAIN CAUSES
Difference in the quality of labour employed by firms
Imperfections in labour market
Difference in technological advance
Financial capacity of the firm
Size of the firm
35. INTER-AREA OR REGIONAL
DIFFERENTIALS
It occurs when workers in the same idustry or
same occupational group,but living in different
geographical areas are paid different wages.
36. REGIONAL DIFFERENTIAL-THE
MAIN CAUSES
Different rate of payment
Difference in cost of living
Availability of manpower
38. INTER-INDUSTRY DIFFERENTIAL-
THE MAIN CAUSES
Extent of unionization
Capacity to pay
Labour capital ratio
Stage of development
Supply-demand of needed skill
39. PERSONAL DIFFERENTIAL
It refers different payment made to different
individual working in the same plant or same
occupation