Pay for Performance Prof Iyengar

Employee Needs 20 25 30 35 40 45 50 55 60 Pension 20 25 30 35 40 45 50 55 60 Cash Vacation Car Career - Training Life and Medical Insurance House Career - Program Work-Life Balance Pension Medical Children Education / care

Cycle Cycle Marriage Enter Work Force Retirement Children Leave home (Dual Career) Enter Work Force Retirement Children Leave home Parenthood Start Family Marriage (Dual Career) Enter Work Force Retirement Children Leave home Parenthood Needs change with time

Compensation Planning and Investment decision Primary Considerations Other Factors Balance of Business Performance Affordability Competitiveness Economic Conditions Projected Market Movement Industry Trends Voluntary Attrition Annual Investment

Sourcing Competitive Intelligence Results Classification Job Match Survey Aggregate Benchmarking Cycle Identify Position Define scope of position Develop / Revalidate JD Compare position to outside companies Compare Responsibilities and NOT Job Title Line Managers and HR participate Participate in Valid Survey Participate and submit data to third party consultancy Data analysis, performance by third party consultants Survey results (in %) are provided to participants Assess compensation position Determine the sixe of the compensation program

Market Based Adjustments (MBA) Top Contributor Reward (TCR) Pay-Rewards Market Based Adjustments (MBA) Top Contributor Reward (TCR) Why Ensure pay compensation over time Reward pay and retain best performers Who Those in high demand countries and Job families Top performers in all countries and Job Families Who decides Determine Company wide amount Managers through team-based D.M

Pay through Penetration Position in Range (PIR) : Details about penetration in range Employee AR – Mid point range Min of Range - Max of Range Position Market Reference (PMR) : Current AR * 100 Mid point Range