Compensation Analysis- ABC Co..pptx

8/12/2019 Compensation Analysis- ABC Co..pptx

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COMPENSATION ANALYSIS

Presented By: Pegasus International


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CxO

Performs predefined tasks of moderate to high level of complexity.

Requires technical qualifications and skills to undertake assigned tasks.

M ay have some people management responsibilities

Responsible for a team and/ or a process in entirety. Responsibility of defining sub-

tasks himself.

Requires high technical qualifications and skills. Responsible for people management Responsible for a processes/ sub-functions within a departmental unit. Performs tasks

of moderate complexity.

Requires basic managerial skills to successfully accomplish tasks.

Responsible for a vertical within Department / business unit or handles a part of

department.

Responsible for verticals/ functions within small business units. Performs tasks of

high complexity.

Responsible for a unit / function/ department dedicated to a large business unit.

Directly responsible for profitability or growth targets of the functional unit.

Responsible for an entire line of business.

Shape the Strategy and Operating plan,

Wholly accountable for growth, cost efficiency, profitability and sustainability of the

line of business or group of businesses / service. Responsible for people management

Sr. Executive Director

Executive Director

Sr. Specialist

Specialist

Associate specialist

Graduate xxx Trainee

Sr. Lead

Lead

Deputy Director

Assistant Director-

Director

Associate Director

Band structure

Oper

ationalStaff

Group

Division

Department

Function



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Methodology of Current Compensation Analysis

Current analysis of compensation level of ABC Company India viz a viz market is based on the

compensation benchmarking data of June 2010 (Benchmarking report shared by competition who

got the benchmarking done in June2010)

Compensation data include only the total cost to company including bonus/PLI but does not

include any LTI or ESOP plan and incentives over and above cost to company.

Comparator organization include companies from telecom, FMCG and banking space i.e. either

from where we source our talent or to the sector where we loose our talent.

The compensation analysis is done on the basis of organization levels / grades represented by

designations/ titles.

Level equivalence has been established by validating the positions profiling in the comparator

organizations levels.



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Findings of Current Compensation Analysis

Compensation levels are maintained at par or ahead of market levels for most of the

levels.

For Director compensation level is at 75thpercentile of Market compensation.

For the frontline positions, ABC Company compensation is lagging behind the market

either at minimum level or 25thpercentile

For the circles launched in first phase (TN, Kerala, Bihar and West Bengal)

compensation levels are generally low.

Circles launched / planned in later half of the year (Delhi , Karnataka and Mumbai )

compensation levels are as per market median.



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S. No.

Level / Title ABC

Company India

Market Median

Salary

(INR 000 pa)

ABC Company

Median Salary

(Overall)

(INR 000 pa)

ABC

Company

Median Salary

(CC)

(INR 000 pa)

ABC Company

Median Salary (All

Circles)

(INR 000 pa)

Median Salary

(Circle - w/o Raj)

(INR 000 pa)

1 Director 4433 5293 5500 5034 5034

2 Associate Director 3368 3200 3371 3200 3280

3 Deputy Director 2568 2520 2916 2200 2300

4 Assistant Director 1906 1896 2200 1750 1770

5 Sr. Lead 1369 1427 1619 1271 1350

6 Lead 823 950 1000 921 960

7 Sr. Specialist 547 550 562 550 600

8 Specialist 384 307 415 302 374

9 Associate Specialist 282 160 254 157 220

Compensation levelmaintaining at par or ahead of market levels for most of the levels.

For the frontline positions we are lagging behind the market.

ABC Company India Overall Compensation analysis



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ABC Company Org

Unit Level

Market

Median

ABC

Company

Median CC MUM DELHI KTK TN KERALA WB BIHAR RJ

Director 4402 5293 5293 5500 4569 4500 4569 0 0 0 0

Associate Director 3368 3200 3300 3300 3200 3000 3240 3280 3027 2916 3300

Deputy Director 2560 2520 2650 2225 2800 2530 2300 2300 2934 2760 2100

Assistant Director 1906 1896 1900 1800 1800 1900 1900 1710 1896 1896 1720

Senior Lead 1362 1427 1441 1450 1368 1429 1500 1495 1400 1372 1133

Lead 823 950 984 1216 900 966 1000 923 882 876 920

Senior Specialist 544 550 550 583 562 551 580 600 580 539 550

Specialist 384 307 321 398 360 370 330 330 352 325 315

Associate Specialist 251 160 288 263 202 250 155 200 216 200 163

Circle wise compensation level analysis



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MEDIAN COMPANSATION (INR 000) - (OVERALL)

S. No.

ABC Company Org Unit

Level

ABC

Company

Median CSD FIN. HR IT MKTG. TECH. SALES OTHERS

1 Director 5293 4262 5500 4412 4569 5293 5500 5500 0

2 Associate Director 3200 2815 2830 3300 3300 3150 3775 3300 4349

3 Deputy Director 2520 2525 2700 2760 2780 2510 2780 2530 2530

4 Assistant Director 1896 1900 2076 1900 1900 1900 1885 1800 1800

5 Senior Lead 1427 1200 1497 1400 1406 1471 1422 1406 1200

6 Lead 950 927 921 921 920 1000 949 950 948

7 Senior Specialist 550 537 562 628 550 562 550 565 551

8 Specialist 307 320 308 323 329 320 321 324 260

9 Associate Specialist 160 168 170 200 170 192 164 188 0

Compensation levels are maintained at median levels in all the line functions.

For support functions e.g. CSD , HR and Finance compensation levels are lower for middle management

Function wise compensation level analysis



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Median Compensation across levels is less than market median

Amount in INR 000

ABC Company India Overall Compensation levelGap analysis

ABC Company Org

Unit Level

ABC

Compa

ny

Median

Market Compensation Benchmarks ABC Company Median % Deviation from Market

Min P 25 Median P 75 P90 Max Min P 25 Median P 75 P90 Max

Director 5293 3850 4133 4402 5188 5624 6943 37% 28% 20% 2% -6% -24%

Associate Director 3200 2457 3186 3368 3730 4055 4256 30% 0% -5% -14% -21% -25%

Deputy Director 2520 2263 2423 2560 2887 3286 3886 11% 4% -2% -13% -23% -35%

Assistant Director 1896 1408 1728 1906 2128 2538 2975 35% 10% -1% -11% -25% -36%

Senior Lead 1427 902 1089 1362 1547 1734 1891 58% 31% 5% -8% -18% -25%

Lead 950 646 719 823 1042 1161 1168 47% 32% 15% -9% -18% -19%

Senior Specialist 550 361 489 544 616 728 774 52% 12% 1% -11% -24% -29%

Specialist 307 238 317 384 445 512 530 29% -3% -20% -31% -40% -42%

Associate Specialist 160 152 206 251 295 320 339 5% -22% -36% -46% -50% -53%



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Recommendations and suggestions

Analysis of trend depicts that there is a need to carry out detailed compensation benchmarking exercise

specific to ABC Company Levels and positions.

Present trend shows that salary corrections could be carried out at least for frontline position to bring

salaries closer to the median. While making changes, it is recommended that we consider following

points :

Recruitment plans and the ease of recruitment for the requisite skill set.

Identification of mission critical functions / levels / positions

Identification of high performance and high potential (HIPO) professionals

Provide for additional budgets to manage issues of internal equity and ensure development and

implementation of salary bands to manage future internal equity.

Compensation corrections should be linked to retention plan.


S S GS C C


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ANALYSIS FINDINGSABC Company INDIA Vs THE MARKET

OVERALLCC AND CIRCLES INCLUDING RAJSTHAN

Level No of Observations Below Market Median Above Market Median

No. %age No. %age

Director 24 6 25% 18 75%

Associate Director 44 25 57% 19 43%

Deputy Director 47 25 53% 22 47%

Assistant Director 106 58 55% 48 45%

Senior Lead 151 67 44% 84 56%

Lead 220 70 32% 150 68%

Senior Specialist 446 212 48% 234 52%

Specialist 559 366 65% 193 35%

Associate Specialist 295 257 87% 38 13%

ABC Company Median

Mkt. Min._____

Mkt. Max._____

Mkt. Median____

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

Asso.

Specialist

Specialist Sr. Specialist Lead Sr. Lead Assistant

Director

Dy. Director Asso.

Director

Director



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Thank You


Compensation Analysis- ABC Co..pptx

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