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Recent trends in Compensation - Compensation And Productivity
Human Resources Management - Compensation And Productivity
Recent trends in Compensation - Compensation And Productivity
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Organizations began to pay scarce-skill premium. This gets skilled people who are ineligible to be fixed at pay scales of higher echelons due to their junior status, but have very rare skills which are crucial to the success of organizations.
Recent
trends in Compensation
In the year 2000, a Compensation Survey conducted by Synergy Consultants at four major locations in India where maximum Information Technology (IT) professionals work. Industry reflected the following trends:
1. Organizations began to pay scarce-skill premium. This gets skilled people who are ineligible to be fixed at pay scales of higher echelons due to their junior status, but have very rare skills which are crucial to the success of organizations. The premium would continue as long as the skill set remains to be rare.
2. The differentiation in salaries between employees with different skill-sets, but same length of experience, has increased within the IT industry. The variation is as large as 60% based depending upon the skill-sets and exposure to different knowledge areas.
3. The differentiation in salaries has also increased between Multi national Corporations (MNCs) doing development work in niche areas and others.
4. The base salary range for Project Managers and senior technical professionals has increased by 40% - 50% and even higher for professionals with strong people-management skills.
5. Compensation has increased substantially, by 33% - 48% at the threshold level of engineers with 3+ years to 4+ years of software development experience. The increase is also dependent upon the company’s position in the business cycle.
6. Most companies still exist with skill shortages. Therefore, the trend of salary increases substantially in excess of inflation adjustment continues unchecked.
7. Salary levels for international placement of software professionals have also increased by 20% - 25%. At the same time, some companies have reduced the expertise / skill levels without increasing salaries in absolute terms.
8. There is a greater tendency now to structure compensation by including anywhere between 10% - 50% of total compensation as performance incentive / reward or flexible payments.
9. The attractiveness and usage of Employees Stock Option Plan (ESOP) and similar schemes at entry level have come down substantially. Many professionals look at ESOPs company.
10. Many more multinational and leading Indian companies in the Information Technology area are now making a serious effort to convey their HR orientation and are taking specific steps in implementing multi-skill and behavioral training and introducing pro-active employee retention schemes.
In the year 2000, a Compensation Survey conducted by Synergy Consultants at four major locations in India where maximum Information Technology (IT) professionals work. Industry reflected the following trends:
1. Organizations began to pay scarce-skill premium. This gets skilled people who are ineligible to be fixed at pay scales of higher echelons due to their junior status, but have very rare skills which are crucial to the success of organizations. The premium would continue as long as the skill set remains to be rare.
2. The differentiation in salaries between employees with different skill-sets, but same length of experience, has increased within the IT industry. The variation is as large as 60% based depending upon the skill-sets and exposure to different knowledge areas.
3. The differentiation in salaries has also increased between Multi national Corporations (MNCs) doing development work in niche areas and others.
4. The base salary range for Project Managers and senior technical professionals has increased by 40% - 50% and even higher for professionals with strong people-management skills.
5. Compensation has increased substantially, by 33% - 48% at the threshold level of engineers with 3+ years to 4+ years of software development experience. The increase is also dependent upon the company’s position in the business cycle.
6. Most companies still exist with skill shortages. Therefore, the trend of salary increases substantially in excess of inflation adjustment continues unchecked.
7. Salary levels for international placement of software professionals have also increased by 20% - 25%. At the same time, some companies have reduced the expertise / skill levels without increasing salaries in absolute terms.
8. There is a greater tendency now to structure compensation by including anywhere between 10% - 50% of total compensation as performance incentive / reward or flexible payments.
9. The attractiveness and usage of Employees Stock Option Plan (ESOP) and similar schemes at entry level have come down substantially. Many professionals look at ESOPs company.
10. Many more multinational and leading Indian companies in the Information Technology area are now making a serious effort to convey their HR orientation and are taking specific steps in implementing multi-skill and behavioral training and introducing pro-active employee retention schemes.
Tags : Human Resources Management - Compensation And Productivity
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