1. Pay for Performance
Prof Iyengar

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

3. 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

4. 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

5. 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

6. 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

7. 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