A PROJECT ON Employee Compensation and Benefits at Fast Track Software Pvt.

Ltd BY Upasna Pandey UNDER THE GUDIANCE OF Submitted to University of Pune In partial fulfillment of award of recognition of Masters of Personnel Management (MPM) Through Asian School of Management Pune

ACKNOWLEDGEMENT

I take an immense pleasure in submitting this report on Employee compensation and Benefits successfully. It helped me to check the feasibility of the theories learnt in me academic course. It is indeed a moment of great pleasure and immense satisfaction for me to express a sense of profound gratitude to all those people who have in making this project an enriching experience. I am very thankful to the respected HOD.. and the project guide and all the staff members who inspired me and provided continuous help and attention during the project. I express my sincere acknowledge to them.

Certificate from institute

Certificate from company

INDEX Chapter No. Executive Summary Company Profile The fast track story Strengths Core Values Services Objective and scope of the study Title Page No.

EXECUTIVE SUMMARY

Organizations offer a wide range of traditional and nontraditional benefits. In the past, the dilemma for organizations was how to offer the right mix of these benefits to attract and retain top performers while also balancing increasing costs of benefits. Today, organizations are managing these ever-increasing costs amidst the uncertainty of the economy. Given that the benefits allocation in HR budgets is typically fixed, or marginally flexible, it is not surprising that according to this research, employers continue to remodel their benefits plans to give employees greater responsibility to manage their health care costs, retirement and financial security, and leave. This project is about the Employee Compensation and Benefits done at the Fast Track Software Pvt. Ltd. The report includes a brief overview, objective of the study and then the importance of the study has been elaborated. This report further contains the research methods, data collection process and the analysis and interpretation of the data. The report has been concluded with findings, conclusions and recommendations.

On a personal note this project was a great learning experience as far as compensation and benefits of the employees is concerned.

COMPANY PROFILE

The Fast Track Story Fast Track was started in 1999 by its President, Brian Conte, a quintessential entrepreneur and world-class software engineer who came out of the Windows OS group. Brian has a demonstrated ability to start small, work smart, and make real money in a tough landscape. A graduate of Princeton University, Conte was among the early employees of Microsoft. He managed the development of Microsoft's first browser and was the architect and developer of the early Microsoft Multimedia Browser and lead developer for Windows and OS/2 hardware adaptations. Conte also served as a senior software engineer for Microsoft for four years. Fast Track's founder, Brian Conte, was one of the original developers of Windows at Microsoft, and has since managed the development of over 50 product releases. His products have been used by millions of people and have won numerous awards, including Product of the Year twice. As Founder & CEO of HDC/Express Systems from 1987 to 1996, Conte invented a number of award-winning products, including Power Launcher, the inspiration for Windows' Start Menu. In the face of a contracting and consolidating marketplace for such utilities, Conte grew the renamed business (Express Systems) again into a leader in its field and successfully negotiated its purchase by WRQ.

When the company changed hands, Conte remained with WRQ as CTO from 1996 to 1999. Brian spearheaded the development of one of WRQ's most successful

products, Express 2000, which generated more than $10 million in its first year. Conte supervised a team of 35 developers and was the chief inventor of two U.S. patents. In 2002, Fast Track opened a development office in India called Fast Track Software Services Pvt. Ltd. The India office has grown from 3 to 60 people. In 2003, Fast Track began working with Microsoft on a number of projects, including Imagine Cup and Dream Spark, two of Microsofts largest and best known student programs. At this time, the Fast Track team became a preferred Microsoft vendor. In 2006, Conte designed and developed Fast Track's Home Automation product line, which won Electronic House's 2006 "Best Home of the Year" award in its debut year and was featured on the Discovery Channel and the Oprah Winfrey show. Most recently, Fast Track opened a sales and support office in Cebu, Philippines in January, 2012. The office currently employs seven people. In November 2012, Fast Track shipped its first product, Power Site, a web site builder for small businesses and designers. Also in 2012, Fast Track became a Microsoft Gold Partner, the highest partnership level that can be achieved with Microsoft. The company currently employs 75 people across four offices. Fast Track: Fast, Innovative, Smart, Proven, Professional Fast Track creates cutting edge websites and web applications for businesses of all sizes faster and better than anyone else in the business. We are a recognized, innovative expert in the development of Microsoft technology applications and one of leading developers of mobile, tablet and web applications utilizing .NET technology.

Our unique background in allows us to deliver high quality results in a cost effective way to increase your competitive advantage. Our solutions range from a very simple website to large, complex applications that operate high traffic environments. And, we offer a complete range of development services - from business analysis, software design and prototyping to software development, QA services, post-project maintenance and support. Our goal is to accelerate your internet business success by providing you with the fastest, most technically advanced web tools in the business. We offer you a professional, knowledgeable team expertly skilled in the latest internet technologies. When you work with us, youll access a full package of internet services, including design, development, marketing, technical support and hosting. We deliver

exceptional customer value through high quality services, constant innovation and creative solutions. At Fast Track, we produce user-friendly websites and applications tailored to your business needs. Our solutions focus on increasing your online presence and revenue. With over 100 years of combined IT experience, weve worked with all types of clients---from startups to large corporations, nonprofit organizations to small companies and everything in between. We take the time to understand your

particular needs and deliver real solutions that are intelligent and seamless.

Our Strengths From the start, weve specialized in Microsoft technology. Weve created major websites and applications for Microsoft. We excel in being faster, more streamlined and more economical than our competition.

Core Values Innovative Knowledgeable Expert Efficient Helpful Useful Passionate Genuine

Fast Track provides a full range of web and application services: Web Design and Development Custom Websites Web Application Development Content Management Systems Ecommerce Websites Enterprise Portal Development Third-party integration

Custom Software Development Open source application Customization

Software QA Consulting Full Lifecycle Process Improvement QA Process Consulting Test Strategy Elaboration and Management

Search Engine Optimization Website Review and Analysis

Website Optimization SEO Plan Deliverables

Enterprise Mobility Solutions Application Maintenance Mobile Web Development By platform for IOS, Android, Windows and Blackberry

Offshore Software Development Software Outsourcing Custom Software Development Software Migration Software Testing Dedicated Software Development Teams

Quality Assurance Accessibility Testing Compatibility Testing Performance Testing Installation/Configuration Testing System/Integration Testing Security Testing Internationalization/Localization Testing

Project Assessments

Code Evaluations Verticals We Serve Banking Communications Consumer Goods Energy Utilities Healthcare IT Media Entertainment Insurance Manufacturing Retail Technology Travel

Solutions Microsoft .NET Windows Azure Custom CMS HTML 5 Windows Phone Entity Framework Linq CSS 3 CSP/MSCOM Microsoft SQL Server Microsoft Silverlight Microsoft Project Sharepoint Microsoft Project

OBJECTIVES OF STUDY

To analyze the various forms of compensation and benefits provided to the employees.

To examine the compensation and benefits forms that boost the interest of the employees to work.

To examine the perception of employees on current pattern of compensation and benefits.

To know if the equity parameters are met by the organizations in the industry To understand employee compensation and benefits of various organizations in the Semiconductor sector.

To know the expectations of the employees on Compensation and Benefits in the times to come

SCOPE OF STUDY The study aims to gain an insight of compensation and benefits offered to the employees. An effort is made to analyse the satisfactory level of respondent employees towards various factors of compensation and benefits.

RESEARCH METHODOLOGY

Statement of Problem Employee compensation is an important determinant of employee satisfaction. Knowing what the employees actually want in terms of the benefits and perks offered by the employers, in addition to fair and adequate pay is crucial to satisfy and retain the key talent in any organization. Compensation has to be fair and equitable among all employees in the company (internal equity) as well as in comparison to the external market (external equity). The study is taken up to analyze the perception of employees towards the current pattern of Compensation, the satisfactory level of employees on various forms of compensation and their expectations on the pattern of compensation in times to come , for the betterment of the employees. Methodology is the section of a research proposal in which the methods to be used in the present study are described. The type of study is behavioral in nature. The methodology of study used in the study is descriptive where it includes surveys and fact finding formats. Sources of data The present study is mainly based on primary data. Secondary data is also taken into consideration where ever necessary. Primary Data The primary data is collected through structured questionnaires. Responses were obtained from 50 employees from the organization.

Secondary Data The secondary data collected includes review of the existing literature of employee compensation and benefits from various text books, internet sources and journals to get an understanding of the concepts related to the study.

Methods of Sampling Convenience sampling is used in getting an approximation of the truth. This non probability method is used during research efforts to get an estimate of the results, in order to overcome the cost or time constraints required to select a random sample. Judgment sampling This is an extension of convenience sampling. The entire sample is from one "representative" city (Bangalore), even though the population includes other cities. The Sample For the present study, data was collected with the help of structured questionnaires from 80 technical employees from four organizations. The respondent employees, twenty each, are taken from the following four companies in the Semiconductor industry. Data Collection The tools used for data collection are structured questionnaires distributed to the respondents through emails, as preferred by the respondents who are technically equipped.

PROJECT WORK UNDERTAKEN IN THE ORGANISATION Human Resource is the most vital resource for any organization. It is responsible for each and every decision taken, each and every work done and each and every result in the Organization. The successful management of an organization's human resources is an exciting, dynamic and challenging task, especially at a time when the world has become a global village and economies are in a state of flux. The scarcity of talented resources and the growing expectations of the modern day employees have further increased the complexity of the human resource function. Even though specific human resource functions/activities are the responsibility of the human resource department, the actual management of human resources is the responsibility of all the managers in an organization It is therefore necessary for all managers to understand and give due importance to the different human resource policies and activities in the organization. Human Resource Management outlines the importance of HRM and its different functions in an organization. It examines the various HR processes that are concerned with attracting, compensating, managing, motivating and developing employees for the benefit of the organization. Employees should be managed properly and motivated by providing best remuneration and compensation as per the industry standards. The lucrative compensation will also serve the need for attracting and retaining the best employees. Compensation Compensation is the remuneration received by an employee in return for his/her contribution to the organization. It is an organized practice that involves balancing the

work-employee relation by providing monetary and non-monetary benefits to employees. Compensation is an integral part of human resource management which helps in motivating the employees and improving organizational effectiveness. Nature of Compensation Employee compensation offered by an organization involves various forms of pay and rewards going to employees and arising from their employment. A Compensation package includes Direct Financial Payments through base pay and variable pay and indirect payments through benefits and incentives. This ensures equal pay for equal work i.e. each individuals pay is fair in comparison to others doing the same or similar jobs. Base Pay It is the basic compensation an employee gets usually as a wage or salary. Base pay is based of the role in the organization and the market for the expertise required conducts that role. Variable pay It is the compensation that is linked directly to performance accomplishments. Variable pay is based on the performance of the person in that role, for example, for how well that person achieved his or her goals for the year. Benefits These are indirect rewards given to an employee or group of employees as a part of org benefits are employer provided rewards and services other than wages and salaries. These benefits are provided for various reasons: 1. Keep salaries low and hence obtain tax benefits. 2. Make the salary package competitive to recruit and retain talent. 3. Act as motivators

4. Ensure long term employment as some benefits are linked to time spent in an organization. Organizational membership (health insurance, vacation pay, retirement pension etc). Need for Compensation Management Fair Compensation Compensation Management is needed to design pay structure that will attract, motivate and retain competent employees, that is also viewed as fair by the employees. Inclusion of Benefits Salary is just a part of the compensation system, the employees have other psychological and self-actualization needs to fulfill. Thus, benefits are included to serve the purpose. Reward desired behavior Compensation should reinforce desired behavior through increments and rewards and act as an incentive for the behavior to occur again. Similarly withholding increments for poor performance will ensure that the employee puts in more efforts. For example: Many organizations appreciate the employee effort though Thank you cards for the effort they have put in for the month. This invokes a sense of healthy competition among employees and a positive work spirit. Also the methods of Star of the month which rate the productivity and efficiency enable measuring the employee efficiency. Motivation

Compensation Package Employe e Retentio n Need Satisfactio n

DRIVERS OF COMPENSATION The following factors influence the shaping of compensation package: Market research about the worth of similar jobs in the marketplace, Employee contributions and accomplishments, The availability of employees with like skills in the marketplace The desire of the employer to attract and retain a particular employee for the value they are perceived to add to the employment relationship, and the profitability of the company or the funds available in a non-profit or public sector setting, and thus, the ability of an employer to pay market-rate compensation. Components of Compensation System Compensation systems are designed keeping in mind, the strategic goals and business objectives. Compensation system is designed on the basis of certain factors after analyzing the job work and responsibilities. Components of a compensation system are as follows:

Job Analysis

Salary Surveys

Pay Structures

Fig: Components of Compensation

Job Analysis Job Analysis helps in finding out the abilities or skills required to do the job efficiently. A detailed study of the jobs is usually mad e to identify the qualifications and experience required for them. Job Analysis can be used in compensation to identify or determine:

Skill levels Compensable job factors Work environment (e.g., hazards; attention; physical effort) Responsibilities (e.g., fiscal; supervisory)
Required level of education (indirectly related to salary level)

Pay Structures A companys pay structure is the method of administering its pay philosophy. The two leading types of pay structures are the internal equity method, which uses a tightly constructed grid to ensure that each job is compensated according to the jobs above and below it in a hierarchy, and market pricing, where each job in an organization is tied to the prevailing market rate. A pay structure helps answer questions about whos who, what each persons role is, and why people are compensated differently. It also helps human resources personnel to fairly administer any given pay philosophy. For example, a company might want to pay everyone at market; or pay some people at market and some above it. Opportunities for incentives are also dealt with in the pay structure. For example, people with strategic roles will likely have opportunities for higher incentives. Salary Survey The Salary survey is the research done to analyze the industry standards to set up the compensation strategy for the organization. Organizations can either conduct the

survey themselves or they can purchase the survey reports from a reputed research organization. These reports constitute the last 2-5 years or more compensation figures for the various positions held by the organizations. Objectives of Salary Survey To gather information regarding the industry standards. To design a fair compensation system. To design and implement most competitive reward strategies. To benchmark the compensation strategies To know more about the market rate i.e. compensation offered by the competitors. Types of Compensation Surveys There are two types of compensation surveys undertaken by the organizations.

Fig: Types of Compensation Survey

Standard Surveys Standard surveys are undertaken by organizations on a regular basis. These surveys are conducted annually based on the organizational objectives. These surveys attempt to cover the same companies every year and provide the same time of analysis. The reports are published annually by the research organizations. The organizations

willing to formulate their compensations strategies based on the surveys purchase the reports from the research organization. Custom Surveys At times, a few organizations need to know some specific information. The surveys which cater this need are known as custom surveys. The organizations either resort to higher research organizations to conduct theses surveys for them or they themselves
conduct the survey by sampling few of the competitors on their own. These surveys do not have any time interval. They are undertaken as the need arises. They focus on important issues usually one or two.

Survey Reports The survey reports consist of the analysis and conclusion drawn from the evaluative data based on the objectives of the study. The reports also include the data, facts and figures to support the analysis and conclusion. The supportive data and annexure provided in the report form the basis for the un-biased conclusion and validation of the analysis. COMPENSATION SYSTEMS Strategic Compensation Compensation strategy is derived from the business strategy. The business goals and objectives are aligned with the HR strategies. Then the compensation committee or the concerned authority formulates the compensation strategy. It depends on both internal and external factors as well as the life cycle of an organization.

Fig: Evolution of Strategic Compensation Traditional Compensation Systems In the traditional organizational structures, employees were expected to work hard and obey the bosses orders. In return they were provided with job security, salary increments and promotions annually. The salary was determined on the basis of the job work and the years of experience the employee is holding. Some of the organizations provided for retirement benefits such as, pension plans, for the employees. It was assumed that humans work for money, there was no space for other psychological and social needs of workers. Change in Compensation Systems With the behavioral science theories and evolution of labour and trade unions, employees started asking for their rights. Maslow brought in the need hierarchy for t he rights of the employees. He stated that employees do not work only for money but there are other needs too which they want to satisfy from their job, i.e. social needs, psychological needs, safety needs, self-actualization, etc. Now the employees were being treated as human resource. Their performance was being measured and appraised based on the organizational and individual performance. Competition among employees existed. Employees were expected to work hard to have the job security. The compensation system was designed on the basis of job work and related proficiency of the employee. Todays Modern Compensation Systems

Today the compensation systems are designed aligned to the business goals and strategies. The employees are expected to work and take their own decisions. Authority is being delegated. Employees feel secured and valued in the organization. Organizations offer monetary and non-monetary benefits to attract and retain the best talents in the competitive environment. Some of the benefits are special allowances like mobile, companys vehicle; House rent allowances; statutory leaves, etc. Equity Theory Employees want to be treated fairly. Equity is the balance between the inputs the individual brings to a job and the outcomes he or she receives from it. Employee inputs include skills, experience, education, special skills, effort and time worked. Outcomes include pay, benefits, achievement, recognition and any other rewards. The individual special skills and efforts are weighed against the pay and recognition paid by the organization. However inputs and outcomes are in different units and are hard to compare with each other directly. Thus equity theory suggests that individuals determine whether they are being treated fairly by comparing their own outcomes. Three elements of equity can be distinguished, internal, external and an individual. Internal Equity Internal equity refers to the relationship among jobs within a single organization. It exists when the employee pay differentials between different jobs within in the organization are perceived as fair neither too large not too small. This ensures that more difficult jobs are paid more.

Fig: Internal Equity External Equity External equity refers to comparison of similar jobs in different organizations of the same Industry. This ensures that jobs are fairly compensated in comparison to similar jobs in the market. Here the market pricing analysis is done. Organizations formulate their compensation strategies by assessing the competitors or industry standards. Organizations set the compensation packages of their employees aligned with the prevailing compensation packages in the market. This entails for fair treatment to the employees. At times organizations offer higher compensation packages to attract and retain the best talent in their organizations.

Fig: External Equity Individual Equity Final element individual equity refers to comparison among individuals among the same job with the same organization.

Types of Compensation A Compensation package includes Direct Financial Payments through base pay and variable pay and indirect payments through benefits and incentives. This ensures equal pay for equal work i.e. each individuals pay is fair in comparison to others doing the same or similar jobs. Direct Compensation Direct compensation refers to monetary benefits offered and provided to employees in return of the services they provide to the organization.

Conveyance

Leave Travel Allowance

Medical Reimbursement

Direct Compensation Bonus House Rent Allowance

Special Allowance

Basic Salary

Basic Salary Salary is the amount received by the employee in lieu of the work done by him/her for a certain period say a day, a week, a month, etc. It is the money an employee receives from his/her employer by rendering his/her services. House Rent Allowance Organizations either provide accommodations to its employees who are from different state or country or they provide house rent allowances to its employees. This is done to provide them social security and motivate them to work.

Conveyance Organizations provide for cab facilities to their employees. Few organizations also provide vehicles and petrol allowances to their employees to motivate them. LeaveTravelAllowance These allowances are provided to retain the best talent in the organization. The employees are given allowances to visit any place they wish with their families. The allowances are scaled as per the position of employee in the organization. Medical Reimbursement Organizations also look after the health conditions of their employees. The employees are provided with medi-claims for them and their family members. These medi-claims include health-insurances and also medical treatment bills reimbursements. Bonus Bonus is paid to the employees during festive seasons to motivate them and provide them the social security. The bonus amount usually amounts to one months salary of the employee.

Special Allowance Special allowance such as overtime, mobile allowances, meals, commissions, travel expenses, reduced interest loans, insurance are provided to employees to provide them social security and motivate them which improve the organizational productivity.

Indirect Compensation Indirect compensation refers to non-monetary benefits offered and provided to employees in lieu of the services provided by them to the organization.

Overtime Policy Holiday Homes

Hospitalization

Indirect Compensation

Flexible Timings

Insurance

Retirement Benefits

Leave Travel

Figure showing Forms of Indirect Compensation Overtime Policy Employees should be provided with the adequate allowances and facilities during their overtime, if they happened to do so, such as transport facilities, overtime pay, etc.

Hospitalization

The employees should be provided allowances to get their regular check-ups, say at an interval of one year. Even their dependents should be eligible for the medi-claims that provide them emotional security and social security as well. Insurance Organizations also provide for accidental insurance and life insurance for employees. This gives them the emotional security and they feel themselves valued in the organization. Leave Travel The employees are provided with leaves and travel allowances to go for holiday with their families. Some organizations arrange for a tour for the employees of the organization. This is usually done to make the employees stress free. Retirement Benefits Organizations provide for pension plans and other benefits for their employees which benefits them after they retire from the organization at the prescribed age. Holiday Homes Organizations provide for holiday homes and guest house for their employees at different locations. These holiday homes are usually located in hill station and other most wanted holiday spots. The organizations make sure that the employees do not face any kind of difficulties during their stay in the guest house Flexible Benefit Plan Flexible benefits plans, also called cafeteria plans, are arrangements in which employees tailor their benefits package to their specific needs. It is a benefits plan that allows employees to select from a pool of choices, some or all of which may be taxadvantaged.

Employees can select the benefits they value most and may forgo benefits of lesser importance to them. Potential choices include cash, retirement plan contributions, vacation days, and insurance. Under a flexible arrangement, an employer allocates a specified amount of money to each employee to 'purchase' benefits. In this way, the employers control the amount they spend on each employee for benefits, while the employee selects the benefits. This method differs from a traditional benefits programme, in which an employer offers a standard package with few, if any, choices to employees. Incentive Plans Organizations can opt for an effective incentive plans from the various alternatives available. The organizations usually opt for that incentive plans which suits its requirement the most. As incentives covers the financial matters, organizations need to be very focused in choosing the best alternative that is in alignment to the business goals and objectives. The various forms of incentive plans are:

Bonus Loyalty Pay Incentive Plans Gain Sharing Maturity Curves Standard Hour Pay Merit Raises

Figure: Incentive Plans

Bonuses Bonuses are given to employees on a pre established goal or criteria. The organizations set policies regarding the bonuses. Usually bonuses are provided during the festive season. Merit Raises Merit raises are given on the basis of predetermined policies. The employees are given raise on the basis of their performance. The performance standards are set by the organizations much in advance. Standard Hour Pay Standard hour plan provides incentives to employees based on the time saved by them during the job course. Employees productivity and quality is evaluated with respect to the set standards.

Maturity Curves Maturity curve incentive plan considers the experience and performance of an employee for giving out the incentives. It is practiced in all the industries. Experience is always given a weight-age as experienced people can produce better quality results. Gain Sharing Gain sharing incentive plans undertake those employees who give outstanding performances and provide for cost saving measures. Organizations believe in sharing the profits with the employees who are responsible for producing those results. Loyalty Pay

Pay for loyalty is an incentive plan that helps to retain loyal employees of the organization. Loyalty pay involves the payment of a sum of money, say, one months additional salary, to the employees working for more than certain minimum years in the organization. Features of Effective Compensation Policy An effective compensation plan takes care of legal stipulations, industry practices, ever rising employee expectations and competitive pressures. A compensation policy is effective if compensation and benefits are: Adequate In line with what is paid in similar companies in the same geographical area. Balanced A reasonable combination of direct and indirect benefits. Equitable Commensurate with the effort put in and the ability used. Incentive Sufficient incentives are needed to motivate the employees to work effectively. Secure Sufficient to satisfy the employees basic need and make him feel secure. Cost effective What the organization can afford to pay. A rational compensation plan helps attract and retain employees at a reasonable cost. Without proper structure the organization may overpay or underpay the employees.

ANALYSIS AND INTERPRETATION OF THE DATA

Introduction Keeping in view, the objectives of the study, the data collected through the questionnaires is analyzed and interpreted with the help of the statistical tabulation method. Statistical tools such as percentages, ANOVA (two way classification), Likert scale, diagrams and graphs are used to test and interpret the findings.

Satisfactory level of employees regarding compensation based on qualification

Levels

Most Satisfactory Satisfactory Neutral Dissatisfactory Most Dissatisfactory Total

Qualifications Percentage of Number of employees employees 3 6 30 60 12 24 5 10 0 0 50 100

Inference 60% of the respondent population is satisfied with the current compensation package based on their qualification. The response shows that 24% of the respondents gave neutral rating, where as 10% are dissatisfied. It is inferred that majority of the respondents are satisfied with the current compensation, taking their qualification into account. However, a significant percentage of respondents.

Satisfactory level of employees regarding compensation based on experience Levels Experience Percentage of Number of employees employees 2 4 25 50 14 28 9 18 0 0 50 100

Most Satisfactory Satisfactory Neutral Dissatisfactory Most Dissatisfactory Total

Inference 50% of the respondent population is satisfied with the current compensation package based on their experience. The response shows that 28% of the respondents gave neutral rating, whereas 18% are dissatisfied. It is inferred that half of the respondent population is satisfied with the current compensation, taking their experience into consideration. However a more percentage of employees are dissatisfied with the pay based on their experience, than that on qualification.

The Organizations pay policy is clear, related to the salaries, pay and bonus

Option Yes No Total

Number of employees 46 4 50

Percentage of employees 92 8 100

Inference 92% of the respondents accept that the organizations pay policy, related to the salaries, pay and bonus is clear to them whereas 8% respondents do not feel that the organizations pay policy, related to the salaries, pay and bonus is clear. A clear pay policy makes the employer-employee relation transparent and enhances mutual understanding. It is inferred from the above graph that the pay policy is clear to majority of the respondents.

Presence of belief in employees on performance based payment system

Option Yes No Total

Number of employees 46 4 50

Percentage of employees 92 8 100

Inference 92% of the respondents show belief in the performance based payment system. 8% do not believe in the performance based payment system. One of the reasons is that performance based payment system involves the rating given to the employees by the managers who may be partial to some extent. Also quantifying the performance is a subjective process which may lead to differentiation among the employees

The Organization provides pay in accordance with the responsibilities handled

Level of agreement Strongly Agree Agree Neutral Disagree Strongly disagree Total

Number of employees 2 25 13 8 2 50

Percentage of employees 4 50 26 16 4 100

Inference 50% of the respondent population agrees that their pay is in accordance with the responsibilities they handled. 4% of the respondents strongly agree to it, where as 16% and 4% of the respondent population disagree and strongly disagree respectively.26% of the respondents show neutral remarks. It can be inferred that the opinions in reaction to this query varies among half of the respondents. Willingness of the respondents to take additional responsibility, if the compensation is increased

Option Yes No Total

Number of employees 36 14 50

Percentage of employees 72 28 100

Inference 72% of the respondents are willing to take additional responsibilities, if the compensation is increased. 28% of the respondents are not willing to take up additional responsibilities, even if the compensation is increased. It can be inferred that compensation alone is not sufficient to please the employees.

Existence of bias in the compensation package of similar jobs within the Organization

Option Yes No Total

Number of employees 42 8 50

Percentage of employees 84 16 100

Inference 84% of the respondents express that bias exists in the compensation package of similar jobs within the Organization. Only 16% of the respondents do not think that bias exists. From this chart, it can be inferred that majority of the employees do not feel that internal equity is met in the organizations.

The Compensation package is at par with package of similar jobs in other Organizations in the Industry

Option Strongly agree Agree Neutral Disagree Strongly disagree Total

Number of employees 1 25 13 8 3 50

Percentage of employees 2 50 26 16 6 100

Inference 50% of the employees agree to the statement, where as the 26% of respondents are neutral. Only 2% of the respondents strongly agree to it. On the contrary, 6% disagree strongly. It can be inferred that half of the respondents agree that their companys pay package is at par with the industry standards, which means external equity is met.

Salary is provided in one of the following weeks, every month by the organization

Weeks of the month First week

Number of employees 41

Percentage of employees 82

Second week Third week Fourth week Total

0 0 9 50

0 0 18 100

Inference

82% of the respondents are paid in the first week of every month; where as 18% of the employees are paid in the fourth week of every month.

The salary paid regularly in the same time every month

Option Yes No Total

Number of employees 50 0 50

Percentage of employees 100 0 100

Inference All the respondents receive monthly salary regularly in the same time every month. This implies that the Organizations pay the employees regularly

The following factors would boost the employees interest in work

Option Increments Better amenities by the organization Scope of Advancement Better working conditions

Number of employees 42 26 31 27

Percentage of employees 84 52 62 54

Better work life balance facilities

37

74

Inference Increments boost the interest of the majority of the respondents, followed by better work-life conditions, then by scope of advancement. More than half of the respondents look for better amenities by the organization and better working conditions.

Specifically, the level of satisfaction with the following: Sick Leave Increments Policy 2 9 26 10 10 30 9 1 Medical Benefit Scheme Incentives Insurance 8 31 9 2 6 8 22 9 18 22 6 4

Factors Most Satisfactory Satisfactory Neutral Dissatisfactory

Most Dissatisfactory

Inference More than half of the respondent population is neutral towards increments. Majority of the respondents show satisfaction towards the sick leave policy, medical benefit scheme and the insurance. Satisfactory level of employees is high in case of Sick Leave Policy and Medical Benefits. Response is evenly spread across the three satisfactory levels in case of Incentives. Dissatisfactory level is high in case of increments.

Would like to recommend any changes in the current Compensation and Benefits package in the Organization

Option Yes No Total

Number of employees 23 27 50

Percentage of employees 46 54 100

Inference 46% of the respondents would like to recommend changes in the current compensation and benefits package.54% of the respondents would not recommend changes to the current compensation package.

Summary of Findings, Conclusion and Recommendations

Findings Majority of the respondents are satisfied with the compensation based on qualification.

Majority of the respondents are satisfied with the compensation based on experience.

Most of the respondents felt that the organizations pay policy is clear, related to the salaries, pay and bonus.

Almost all the respondent employees believed in performance based compensation system.

Fifty percent of the respondents agreed that the Organization they work for provides pay in accordance with the job responsibilities they handle.

More than half of the respondent population is willing to take additional responsibility, in case the compensation is increased.

Three fourths of the respondents feel that there exists bias in the compensation package of similar jobs within the organization.

The salary is paid to the employees in the first week to the majority of the employees and to the rest of the respondents in the fourth week.

Of all the following factors, Increments Sick Leave Policy Medical Benefit Scheme Incentives and Insurance Policy

Increments boost the interest of most of the employees. Nearly half of the respondent population considers the need to make changes in the existing compensation and benefits package in their respective Organizations.

Conclusion Todays compensation systems have come from a long way. The results of the study indicate that with the changing organizational working patterns and employee needs, there is a need to bring in changes in the compensation systems. The organization needs to provide competitive compensations to their employees, taking into account, the higher education qualifications, experience and higher skills required for the jobs. Further the study reveals that perfect compensation system, with properly designed features like loyalty pay and Flexible Benefit Plan along with timely increments, and performance incentives, provides platform for happy and satisfied workforce. The workforce not only looks for monetary benefits, but also looks forward to various aspects like wok-life balance facilities, better amenities, and better scope of advancement. The business organization can think of expansion and growth if it has the support of skilful, talented and happy workforce. Therefore a fair compensation system is a must for every business organization. The sound compensation system is hallmark of organizations success and prosperity.

Recommendations

Compensation packages should be based on quantity, quality and impact of work.

There needs to be focus on employee potential and current performance while structuring the compensation and benefits package.

Provision of short term and medium term education course packages, helps the competent employees to horne their skills and enhance their knowledge. This in turn, helps the organization to grow.

Inclusion of overtime pay package, as work load is high during the project completion period.

Adoption of innovative ways to reduce tax burden on employees is needed as money saved is money earned.

Monthly/Quarterly rewards for star performers should be included, as this keeps the employees on toes as well as for most of the employees compensation play a crucial determinant.

The Compensation has to be balanced properly across the employees of organization who have the same number of years of experience and also the nature of work being same.

BIBLIOGRAPHY

www.fasttrackteam.com www.google.co.in

Compensationin Organizations,by SaraL. Rynesand BarryGerhart, eds. JosseyBassInc.

ANNEXURE QUESTIONNAIRE ON EMPLOYEE COMPENSATION AND BENEFITS I. EMPLOYEE DETAILS:

a .Name: a. Designation : b. Name of the Organization: c. Years of Experience in the Organization : d. Income Level (Annual): Below 6 Lacs 6-10Lacs Above10 Lacs

II. DETAILS OF COMPENSATION AND BENEFITS 1. Satisfactory level of employees regarding compensation based on Factors Most Satisfactory Satisfactory Neutral Dissatisfactory Moist Dissatisfactory a)Qualification b) Experience

2. The Organizations pay policy is clear, related to the salaries, pay and bonus Yes No

3. Do you believe in performance based payment system? Yes No

If No, please state a good strategy that can be followed

4. The Organization provides pay in accordance with the responsibilities handled

Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

5. Are you willing to take additional responsibility, if the compensation is increased? Yes No

6. According to you, is there any bias in the compensation package of similar jobs within the Organization? Yes No

7. The Compensation package is at par with package of similar jobs in other Organizations in the Industry. Strongly Agree Agree Neutral Disagree Strongly Disagree

8. Monthly salary provided by the organization a) In which of the following weeks of the month is the salary provided? First week Second week Third week Fourth Week

b) The salary paid regularly in the same time every month. Yes No

9. Which among the following makes you feel would boost your interest in work? a.) Increments b.) Better amenities by Organization c.) Scope of advancement d.) Better working conditions e.) Better work life balance facilities

10. Specifically, the level of satisfaction with the following Factors Most Satisfactory Satisfactory Neutral Dissatisfactory Moist Dissatisfactory Increments Sick Leave Policy Medical Benefit Scheme Incentives Insurance

11. Would like to recommend any changes in the current Compensation and Benefits package in the Organization

Yes

No