Tuesday, 7 May 2013

FAIR COMPENSATION A BIG CHALLENGE


Fair Compensation a big challenge

It is not easy to describe compensation for any of the employee as well as the HR’s while implementing the policies or the employer who is responsible to release the salary, weather it is well paid or not. The reason behind this it depends on many factors. Some of the factors are following from the employee point of view.

Qualification
If companies have some consideration while deciding the salary with the qualification, then the candidates joining from various colleges, institute, and with various degree conflict with self as well as other colleague. If a candidate who is joining a company comes of regular institute and someone from A-grade institute then the expectation of the salary differs. No matter what kind of work is allocation for both of them. Even if anybody has more certificates then also the expectation differs regarding their salary what they are earning.

Comparison of wages
 Various companies have their own compensation parameter but as per the perception of employees they always compare their salary with various companies. But they overlook the task assigned to them which vary company to company. These things happen with their colleague, friends and batch mates also.

Nature of work and time spend in the office
Nature of work and time spend in office always collide with each. Few employees works for a long duration and few complete their task within a given time, this create a dilemma in mind set of the employees during appraisal as employees working for long hours assume that they will be rewarded for their work and long log in hours.

Employers Views

It is very difficult to say about the employer mindset on compensation parameter. In small company, employers are aware of the compensation. Mostly as seen employers want to keep the compensation part as low as they can. In the developing countries were the population or skill employees are available in sufficient quantity they take the advantage of any possibility they can.

In a big companies or MNC’s the compensation is totally depends on the management which is group of decision making team or experts. In some company payrolls are outsources to various consultant companies. Mostly the way for fair compensation for this consultant companies are to do survey in various companies and then implement the best practices.