ABC consultant is a leading HR Consulting Organisation, recognised as leader in providing Compensation Related Advisory Services & Solutions along-with host of other HR interventions.
Credentials of HR Consulting division of ABC Consultants are –
• A wide range of experience in HR & Compensation Consulting across Industry Verticals, Functions and Regions
• Strong Professional Relationship with Leading MNC’s & Indian Companies
• A Group that has Grown Organically and is supported by Professionals with Varied Competency & Background
• Strong Research & Analytical Competency in handling HR & Compensation Surveys
• Post Assignment Hand holding the Clients for Implementation/ Education which help in decision making
• High Standards of Integrity and Responsibility in all dealings
Using methods that have been thoroughly tested in the Indian Industry, ABC Consultants provide tailor-made solutions to organisations. According to them the key to success lies in the ability to comprehend and manage data & provide realistic/ implementable solutions.
ABC Consultant’s effectiveness can be gauged by its clients’ loyalty and by the ever-growing & repeat number of surveys undertake each year.
These Consultants have an In-depth Knowledge and Experience in Compensation Consulting to meet the Market Challenges and provide Appropriate and Specific Compensation Solutions. ABC employs talented Resource & boasts having 12+ years – as average tenure of consultant(s) with the organisation.
They assure the organization of –
• A Need-Based and Cost Effective Services
• Comprehensive knowledge transfer of the Survey Methodology and Support Services
• In-depth Data w.r.t each attribute of Compensation Structure and Analysis
• Professional Handling of Data, Assessment of the Organisation Culture &
• Levels/ Positions and Developing Equivalence
• User Friendly Report
What is Bench-Marking?
As per the net “Salary Benchmarking Is a Vital Tool When Hiring Employees. Salary benchmarking, also called compensation benchmarking, is the process by which internal job descriptions are matched to external jobs with similar responsibilities to identify the market rate for each position.”
It is important to be sure that all the important aspects of work are evaluated with the sample of benchmark jobs. These jobs are identified by the different levels in the structure and job families the organization has. The Benchmarking has the following characteristics:
• Its contents are well known and stable over time.
• The job is common across a number of different employers. It is not unique to a particular employer.
• A reasonable proportion of the workforce is employed in this job.
It is important to be able to capture the diversity of the work within that domain by proper evaluation.
Why Bench – Marking is important in India?
We all know that the Economy of India is a developing mixed economy. It is the sixth-largest in the world by Gross Domestic Product (GDP) and the third-largest by Purchasing Power Parity (PPP) with approximately 7% average growth rate in last two decades.
The long-term growth prospective of the Indian economy is
moderately positive due to its young population poised for quick
integration with global economy. The India economy has the potential to become the world’s 3rd-largest economy in next decade. Adding to this is the political stability and positive attitude of “Team India”.
Today, the Indian Economy is considered to be the “bright spot” of global landscape. Its service sector is one of the fastest growing in the world with an annual growth rate of above 9% since 2001, which today contributes approx. 57% of GDP. The Indian companies are continuously seeking competitive advantages and are developing requisite competency for business strategies to manage diversity, value for skill and retain talent to meet the challenge of future.
Organisations have important role and responsibility in addressing the changing needs of human capital – as they support the business goals and share responsibility in managing cultural changes along-with delivery of results. Newer approaches and benchmarking is fast evolving “innovative best practices” and enhancing employee commitment for delivery of product and services. The human capital is today viewed as strategic partners and virtual owners in overall business strategy. Hence, the focus is shifting from “numbers” to quality and from “attracting” to talent “retaining”.
Today organisations need innovative “people processes” realignment to keep the employees engaged and ensure the employee’s improved performance management & reward system with transparent performance measurement. The important steps, the organisations could take to develop a balanced and comprehensive executive compensation program covering the following key interventions –
• Clearly articulate and communicate company’s compensation policy.
• Review & align all pay and benefit programmes with its business philosophy.
• Validate the alignment of company’s pay policy across all employee levels vis-à- vis market benchmark.
• Scientifically design a transparent variable pay program to ensure that both short-term and long-term incentives drive the organisational growth strategy.
• Develop sound talent management & retention strategy
Executive Compensation has become a rapidly changing topic, demanding more sophisticated approaches to identify and reward the deserving employees. Thus, progressive organisations ensure that their remuneration packages remain competitive against comparable organisations. Accurate and timely information is thus becoming increasingly necessary to make important decisions in the interest of short term & long term goals of the company.
Methodology and Approach
ABC Consultants organised Compensation & Benefit Benchmarking Survey for their Associate Levels covering Leading Companies in the industry, the findings of which
would help the company in validation of the Remuneration Packages offered by them across various experience ranges of its associates.
The scope of the evaluation included the following:
1. Detailed remuneration structure and various methods of compensation from the organization.
• Following benchmark companies were covered under the study –
o Denso
o Carrier Aircon
o Daikin India
o Hyundai
o LG India
o Mahindra
o Panasonic
o Samsung India
o Toyota
o Voltas
2. Tabulate the salary, cash benefits and perquisites, grade / category wise for each company across various management levels.
3. Prepared “Grade Equivalence Grid” to enable proper comparison across companies.
4. Prepared inter-company comparison of Total cost across each standardised grade
5. Analysed and compared survey data to determine the relative positions of different companies in terms of Total Remuneration as well as individual components / subgroups.
6. Analysed the compositions of Remuneration Packages of different companies in terms of %ages of various components in the Total Remuneration i.e “Situational Analysis”.
7. Provided benefits data across benchmark companies