Variable pay and flexi-benefits on rise: Report
According to a report, TeamLease Compensation and Total Rewards Trend Reports, the movement in salary structure is towards an increasing the proportion of the variable pay and the flexi-benefits offered, as part of the Total Rewards strategy in the Industry. The report states that the average variable pay across hierarchies are risen to 10.6 percent of the total combination.
While for the senior management the rise is 25-30% of the total, for the middle management it is 18-20%, and for the junior management it has increased to 10-12%.
Also stated in the report, flexi benefits are yielding better ROI for the HR departments because their cost to the organization is 25% of the HR budget, but their perceived value in the organization is higher. Also, flexi-benefits offer better tax benefits and also at a lower cost to the individuals. The preference in terms of benefits desired by the employees is as follows: professional development, educational benefits, healthcare plan and performance bonus, among others.
"While flexi benefits have become a popular medium to please and retain employees, organisations need to be honest with their intent, put earnest effort and prioritise on aligning rewards with business objectives," said Sonal Arora, Vice President, TeamLease Services.