Different Compensation Plans

8/8/2019 Different Compensation Plans

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Different Compensation Plans:

1.Direct compentation(cash

a.base pay):

b.incentives pay

-bonuses

-commissions Allowances

-overtime

-shift work


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2.Indiect (benefit);

-insurance

-medical and health

-childcare

-Employee assistance -flexible work schedules

-holidays


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Different Compensation Plans:

Pay System Traditionally people were paid primarily through base salaries determined by

specific job, the need to maintain a certain level of internal pay equity an theneed to pay externally competitive salaries.Employees were not encouraged todevelop skills.

Development of new Pay system Pay for knowledge and skills

Pay for competencies

Performance based pay

Incentive pay systems

Basis of Performance The basic objective of the sales compensation plan is to compensate sales

people on the basis of their performance. Organizations have different sellingpatterns and, over the years, various types of sales compensation plans havebeen developed to address these needs

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Straight Salary Plan Organization have different salary structure on the basis of different criteria. For

example, on the basis of the employees marketing skills, qualifications andresponsibilities.

It also has provisions for salary increments and the criteria for the same. Salaryincrements can be periodic or flexible depending on the organization's policiesand the same is clearly mentioned in the plan

Commission-Only Plan This plan does not accommodate any other source of compensation for

employees apart from commission on sold items.Commission-only plans

mention the different commission levels with respect to sales volume or time.For example 1% commission on sale of first 100 items, 1.5% commission onthe sale of next 100 items or 1% commission for 100 items in month, 1.5%commission for 150 items in a month.

Salary plus Commission Plan

According to this plan compensation are provided to the employee during thisinitial period, he is offered a minimum fixed salary for a period of time. This plancame into existence due to a major shortcoming of the commission-only plan.T

he commission-only plan is not of much benefit to a new employee who needstime to settle into the position.

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Bonus Plan This plan includes the criteria for awarding bonuses and the time of

payment, which is generally the year end. In case an employee iseligible to earn more than one bonus, the cumulative bonus calculationis also included in the plan. Bonus components are always paid as afixed sum per attained objective and not as percentage of sales

Sales Incentive Plans This plan works similar to the bonus plan with the only difference being

that sales incentives are always non-monetary, such as gifts and other

items that may be useful in improving the employee's lifestyle.T

hesales incentive plan can be considered as an alternative to the bonusplan. Sales incentive is generally an integral component of any salescompensation plan.

Reward Strategy The greatest incentive is the work itself as employees want to be

recognized for the work they do and the contributions they make to theorganization. The incentives should be clear and simple.


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REWARD STRATEGIES AT PANTALOONS

(1)EMPLOYEEOF THEMONTH

Objective-to improve work performanceEligibility-all front line employee

Frequency-held on a monthly basis

Pamameter looked into;

Target achievement

Punctuality

Grooming standards on floor

Interaction with co-employee

Customer service


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The employee selected receives Rs.1000 cash, is facilities by his

parents in the Saturday store meet in presence of all the other

employees. Also the store manger takes him/her out for dinner. At theentrance of the store a laminated certificate is kept naming the

employee of the month. The winning employee name and photo is

inserted into the certificate.

(2)FUNZONEAWARD:

At pantaloons the employee staff rooms are named fun zones. Each

store has the liberty to decorate its own fun zone. Snapshot are clicked

and send to the HR. It us done on Quarterly basis. the best store

receives an award of Rs10000 .


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(3)Other awards;

Intra and inter store competitions are held based on special

occasion/days like Valentines days, christmas etc.

1.the award is based on the sales targets achieved.

2.It is done at a Zonal level.

3.The winning team/store gets a trophy and a party.


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SHOPPERS STOP:

JOJEETA WOHI SIKANDAR

Objectives; To promote a performance driven culture across all functions

Eligibility: Employee across all the functions(Customer serviceassociates/frontline staff)

Frequency: Held on a quarterly basis.

UBHARTA SITARA

Objective; To encourage growth and talent development amongst employees.

Eligibility ;All new joinees at the store level.

Frequency; held on quarterly basis.

There is a test held for the new joinees. First test is written, the questions includesinductions leanings, store format, merchandising, basic of visual merchandisingetc. On successful completation all the stages employee is awarded as theUbharta sitara. Facilitated with certificate in the Sunday meet.


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Cont..

BEST CUSTOMERCAREASSOCIATES

Objective: to increase efficiency amongst front line employees.

Eligibility:all front line employees at store level.Frequency:held on a quarterly basis.

The front line employees are marked on the following points:

Attendance

Punctuality at work

Dressing etiquittes Interaction with customers

Cutomer feedback form


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WOW AND FOUL CARD

OBJECTIVES;to increase team spirit amongst front line employees.

Eligibility; all the front line employee at the store level

Frequency; held on monthly basis.

They are judged on various parameter like;

Peer interaction

Ability to take on new roles

Interaction with customers

Ability to handel work pressure

Ability to work in termsThe employees are observed and monitored by the store HR.ON display ofqualifying behaviour the employee is awarded a RED colour Wow card,similarly on display of unruly behaviour the employee is handed over a BROWNcoloured Wow card. The card act as a spot of reward. Depending of the no ofcard collected by employee the winning employee gets agift voucher of rs 1000.

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Different Compensation Plans