A study on

Compensation Management
of IT Companies in Kochi
with special reference to

Under the guidance of

Dr. RAJEESH VISWANATHAN
Assistant Professor
DEPARTMENT OF INTERNATIONAL

Done By,
SARATH S NAIR
18382055
 INTRODUCTION
• Compensation is the monetary benefit given to an employee or worker for their
services to the organization. Compensation includes components like salary, wages,
bonuses etc.
• Herzberg’s two-factor theory states that there are certain factors in the workplace
that cause job satisfaction while a separate set of factors cause dissatisfaction, all of
which act independently of each other.
• The study aims to differentiate the compensation structure that is provided among
the top IT players in our country and find how its different from that which is
provided in NDZ.
 COMPANY PROFILE
Company Name: Ndimensionz Solutions Private Limited
Head Quarters: Smart City Kochi
Company Category: Company limited by shares
Authorized Capital: 100,000,000
Paid Up Capital: 20500000
Revenue(2018-19 approx): $ 6.2 million

CEO: JITHIN MALAYILAKATHUTT VIJAYAN

Number of Employees: 172
Email: info@ndimensionz.com
 OBJECTIVES
• To find out what market pays for a particular job and how
Herzberg’s Hygiene and Motivational Factors influence the
employees.
• To find out whether the salary provided are market competitive.
• To find out whether the performance are in line with the
compensation.
• To find out whether the compensation is structured well enough
to stimulate desire of future growth.
 RESEARCH METHODOLOGY

Sample Size 40
Sampling Frame IT Industry
Sampling Method Convenience Sampling
Data Primary and Secondary data
Research Approach Survey Method
Survey Questionnaire
 WHAT MARKET PAYS?
LEVEL NDZ INFOSYS TCS COGNIZANT Average Salary

ENTRY LEVEL 1.62 4.45 3.62 3.4 3.27

LEVEL 1 1.62 3.6 3.7 3.6 3.13

LEVEL 2 5.32 4.96 5.49 6.5 5.56

LEVEL 3 5.25 6.1 7.88 7.2 6.6

LEVEL 4 4.7 14.25 12.35 15.02 11.58

LEVEL 5 8 21.18 15.93 16.7 15.45

 AVERAGE SALARY PREVAILING INSIDE INDUSTRY VS SALARY PROVIDED BY NDZ
NDZ Avg Market Pay

15.45

11.58

6.6
5.32 5.56 5.25
4.7

3.27 3.13

1.62 1.62

ENTRY LEVEL LEVEL 1 LEVEL 2 LEVEL 3 LEVEL 4 LEVEL 5

IT employees influenced by Motivation and
Hygiene factors
MOTIVATORS HYGIENE FACTORS

NO NO
18% 14%

YES YES
82% 86%
NDZ’s Vacancy Position in the month of May 2019
Job Position No of Vacancy Candidates attended Average Experience of
2nd round Interview Candidates
PHP Developer 1 8 2-3
Android Developer 1 4 2-3
UI Designer 1 16 0-2
Word Press Developer 1 5 0-2
Security Analyst 1 3 2-3
.NET Developer 1 11 2-3
Quality Analyst 2 13 2-3

• The company is able to fill the new vacancies immediately by attracting employees with
the current salary pack.
• NDZ is on boarding many experienced employees by offering competitive package and is
trying to expand business.
• The company has bought a new space in carnival Info park to expand its Analytics Team
who are dealing with big data, AI etc. Members of this Team are the highly paid in NDZ.
 FINDINGS
• 84 % of the respondents are positively influenced by the hygiene and motivation factors
provided inside IT Industry.
• NDZ offer the same salary to the first 2 levels. Ie, for Trainee Software engineer and Junior
Software engineer where as others offer different salary to different levels.
• Level 2(Software Engineer) and Level 3(Software Engineer 1) jobs in NDZ offers a
competitive salary pack where as it is not seen in other levels of the hierarchy.
• NDZ has hired people who has completed diploma or similar courses. These people are not
technically skilled when compared to employees who have completed their BE/Btech. Hence
they are paid less.
• NDZ believes that people who has work experience in other companies can add value and
make the company grow faster. Hence lateral entrants are paid more as compared to other
employees.
• People who are handling more than one project in the company are highly rewarded in
terms of compensation.
• Every employee is gone through a Performance evaluation once in every 6 months. Salary
revision is also done with the evaluation.
 SUGGESTIONS

• NDZ need to review their compensation structure and make it more market
competitive.
• NDZ need to change their company polices regarding leave plans and dress
code which helps to improve employee attachment to the organisation.
 LIMITATIONS OF THE STUDY
• Salary Band of companies other than NDZ used for the study are taken from
online platforms like Glassdoor, Pay scale etc.. hence the data are not 100%
reliable.
• Compensation details of NDZ employees up to manager level is only considered
for the study due to confidentiality and policy issues.
• Response to the questionnaire was as per the respondent understanding, which
may differ from respondent to respondent.
• Shortage of time is one of the restrictions.
• The study is based on sampling method, so sampling errors bound to occur.
THANK YOU