Community Members, A new exciting session on Employee Compensation & Benefits coming to you this week.
Thank you to each one of you for the continued support and enthusiasm you bring to the greytribe LIVE with Experts initiative. Your support motivates me! Much Appreciated
An exclusive greytribe LIVE session (30 minutes of LIVE discussion thread) with domain Expert Ms. Suchandra Dutta; India HR Lead, Alif Semiconductor on the topic :
‘Employee Compensation & Benefits; Solutions, answers & clarifications’ from 5:00PM to 5:30PM on 10th June 2022 .
Let’s together make the 30 minutes most effective with a lot of questions for the domain specialist.
Requesting members to post your doubts/queries related to Employee Compensation & Benefits as comments in this post and get them all answered by the industry expert on 10th June 2022.
I’m interested to attend the session
could you pass me the link to join the session?
Thank you for your interest in the session.
There is no need of separate link to join the session. The LIVE discussion will happen in this thread only.
At 5 PM on 10th June our expert will write answers to questions provided by the community. You will be notified on the questions and answer too.
In case you have any questions, please feel to post in advance so the expert can pick them up too during the LIVE session.
Is it not mandatory for a company to provide increment letter when increment is given? In such cases with no increment letter how can i show the increment in salary?
We are going LIVE in 5 minutes.
Please join our LIVE discussion session on ‘Employee Compensation & Benefits; Solutions, answers & clarifications ’ from 5:00PM to 5:30PM on 10th June 2022 .
Let’s welcome todays expert panel Ms. Suchandra Dutta.
Ms. Suchandra Dutta is one of the most sought out experts in this domain. She is an Alumnus of Haas School of Business, University of Berkley with 15+ years of strategy, consulting, program management and practitioner experience in the area of Human Resources.
As a senior HR leader, she has led different HR functions with leading global organisations such as Astra Zeneca, Novozymes, Alcatel - Lucent. A dynamic leader with experience in working with global cross functional teams and implementing global projects in HR.
We are thankful by her accepting to be part of this brief session to share her thoughts and knowledge.
We humbly welcome you to the session!
We also open the session for questions after this post.
Thank you for welcoming me to the forum
Thank you for the regular LIVE sessions.
What is Employee benefits and compensation in HR ?
Compensation and benefits are important aspects of an employee’s satisfaction at a workplace, as they directly impact an employee’s performance and motivation to work.
Where as Employee Benefits are the indirect and non-cash compensation paid to an employee. These benefits are given to employees over their salaries and wages. E.g Company transportation, Insurance, Office Lunches, Gym memberships, Wellness programs etc.
Compensation is the payment made to an employee in return for their contribution to the organization, that is, for doing their job. It’s given in the form of cash and constitutes salary in the form of monthly/weekly payments. Bonuses, incentives also form a part of the compensation.
What is the difference between benefits and compensation?
In layman words, Compensation is an umbrella term used to describe anything that an employer gives an employee in exchange for their work. Benefits is sub-set of compensation.
Compensation is primarily monetary rewards whereas Benefits are non-monetary. Whereas you design compensation to attract best talent, you design benefits to motivate employees and make them perform better.
Compensation is usually fully or partially taxable whereas benefits are non-taxable or sometimes partially exempted from tax as well.
Please advise on on our question.
How do compensation and benefits impact the success of an organization?
One of the biggest factors that people look forward to while joining any company is the compensation and benefits, salaries, perks, incentives etc. which is given to them. Apart from the company’s reputation and job profile, the money offered as a salary is pivotal in attracting people to work for the organization.
Ensuring that the employees desired compensation is met along with great benefits ensure high productivity for the organization. Though comp and benefit is not the only factor, along with great work, good culture and a growth path, employee satisfaction can be ensure. A good compensation and benefit strategy helps to attract new talent as well as retain existing employees as well.
We would like to know- What are the few ways to ensure compensation fairness?
To ensure Compensation fairness, first of all you should design your compensation with a system of components which includes job descriptions, job analyses and evaluations, and pay structures. Ensuring that these elements are included when determining compensation plans is essential to maintaining internal and external equity.
Secondly have a Compensation Strategy based on how competitive you want to be with the market value of a position and how you want to determine your raises and promotions.
Also have a Market Based Pay approach- conduct market salary benchmark for your industry and the positions to understand where you stand in the present market and where you would like to move yourself in comparison to market percentile.
Build Pay Ranges which will guide you to differentiate between similar job roles with different performance and ensure pay for performance is established within the organisation.
Ensure Pay Equity both internally and externally.
Please guide us on this question- In a salary structure, should benefits need to be included or shown separately in compensation?
If the organisation follows a Total Cost to Company Structure and cost of benefits like insurance is part of the salary, mention it under salary structure. Else if the cost of benefits is borne by the company and is not passed on to the employee CTC, then mention them separately in the compensation letter as Company Benefits.
e.g some companies give employee insurance but does not add the premium amount as a cost to the salary. Hence they only outline the Insurance benefits that the employee gets from the company. Example as below.
Gratuity Coverage: As per the Payment of Gratuity Act.
Group Medical Insurance Scheme Floater Policy for sum insured of INR 10L for self, spouse, 2 children and parents/in-laws subject to decalaration.
OPD Insurance Scheme Floater Policy of INR 15,000 for self, spouse, 2 children and parents subject to decalaration.
Group Personal Accident Insurance – Employee is covered under INR 1 Cr. of GPA insurance.
Group Term Life Insurance – Employee is covered under INR 1Cr./or Three times of CTC of GTL insurance.
Please help on the below question:-
Which employee benefits are most valued by employees while looking for a new job?
Employees look for benefits as per their demographics and stage in life. Most of the common benefits that most employees today look for is:
- Flexible work environment/work from home
- A good comprehensive leave policy with leave encashment and other perks
- Health Insurance coverage and coverage for parents/in laws. Other medical benefits like OPD or teleconsultations, wellness programs
- Company perks : Food, transport, entertainment, engagement
- Personal Development opportunities
- Tax saving plans that company can provide apart from the usual e.g company car lease, NPS