REVIEWER-COMPENSATION ADMINISTRATION
Tournament Programs - where individuals and/or teams compete with each other for incentives.
Territory volume sales compensation plans are regularly utilized in group based corporate societies.
They work through the computation of territory volume toward the end a compensation period.
Team/small-group incentives - Any incentive program that focuses on the performance of a small
group, usually a work team. These programs often are used when measurable output is the result of
group effort and it is difficult to separate individual contributions.
Straight salary sales compensation designs aren't extremely normal, however they do have a place
in a few organization.
Spot awards - Recognize special contributions as they occur for a project or task, generally
accomplished in a short period.
Special Allowances:Makes up for the rest of the pay, for the most part littler than the fundamental
compensation and totally taxable.
Short-term incentives - also often referred to as annual incentives, are planned to compensate
executives for accomplishing the company’s short-term business strategy dependent on
accomplishment of objectives by the board compensation committee.
Sales Incentive programs - These programs are primarily used to drive sales, diminish sales costs,
increase productivity, grow a new territory, and improve edges. A sales incentive plan (SIP) is a
business tool used to persuade and compensate a sales expert or sales agent to meet objectives or
metrics over a particular period of time.
Sales Compensation is the blend of base salary, commission, and incentives that are utilized to drive
the performance of a sales organization.
Salary Structure is the structure or subtle elements of the pay being offered as far as the separation
of the different segments that establish the remuneration.
Salary plus commission sales compensation designs are potentially the most well- known plans
utilized today. They're organized in a way that sales people get a lower base pay alongside
commission pay that makes up most of the aggregate pay.
Retention bonus - A payment or reward outside of regular salary that is offered as an incentive to
keep a key person on the job during a particularly crucial business cycle.
Quota-Based Programs -- incentives are given for meeting or exceeding a performance goal
Provident Fund:Fund gathered amid crisis or maturity. 12% of the fundamental compensation is
consequently deducted and goes to the employee provident fund.
Project bonus - A form of additional compensation paid to an employee or a department for
successfully completing a project within a certain time frame.
Profit-sharing plan - A plan through which employees share in the organization's profits. The plan
normally includes a predetermined, defined formula for allocating profit shares among participants
and for distributing funds accumulated under the plan. Some plans, however, are discretionary.
Piece-Rate Incentive Programs -- for increasing rates of performance – doing more of something.
Performance based compensation is a motivation based type of compensation that can be paid to
portfolio managers.
Pay systems are strategies for compensating individuals for their commitment to the organization.
Ideally, systems ought to be clear and easy to pursue with the goal that workers can without much
of a stretch know how they are influenced.
Pay is a key factor influencing connections at work. The level and conveyance of pay and advantages
can considerably affect the productivity of any organization, and on the confidence and efficiency of
the workforce.
Page | 1
REVIEWER-COMPENSATION ADMINISTRATION
Non-Monetary Better opportunities, flexible work hours, payroll or premium contributions, training,
recognition etc
Monetary Bonuses, Profit-Sharing, Share-ownership, Gift-cards, Merchandise, Travel, Experiential
etc.
Medical Allowance: The business pays the worker for the therapeutic consumptions brought about.
It is tax exempt up to Rs.15,000.
Long term incentive plan or LTIP - is a sort of executive compensation that typically comes as
performance shares or matching shares of the company.
Leave Travel Allowance: The non-taxable sum paid by the business to the worker for excursion/trips
with family inside India.
Incentive compensation programs - are essentially used to promote proficiency and productivity of
the workforce, yet organizations can likewise use them to improve worker recruitment,
commitment, retention and employer branding.
House Rent Allowance: The HRA comprises 40 percent to half of the essential compensation.
Gratuity: It is essentially a single amount sum paid by the business when the employee leaves from
the organization or resigns.
Gain-sharing plans - Any one of a number of incentive programs that share the results of
productivity gains with employees as a group.
Fixed-Rate Incentives – salary-based compensation.
Employee Stock Options: ESOPS are Free/marked down offers given by the organization to the
workers. Done to principally build employee maintenance.
Employee Incentive programs -are programs used to increase overall employee performance.
Workers programs are often used to lessen turnover, boost morale and loyalty, enhance worker
wellbeing, increase retention, and drive daily worker performance.
Discretionary bonus plan - A plan in which management determines the size of the bonus pool and
the amounts to be allocated to individuals after a performance period. This plan has no
predetermined formula or promises and is not guaranteed.
Define Employee Benefits?
Define Compensation Management?
Dealer Incentive programs - are used to enhance performance for dealer, resellers, channel
accomplices and different sorts of brokers using sales incentive programs. These programs help
companies to catch market share, launch new items, diminish cost of sales and give momentum for
new launches by incentivizing an external gathering to drive extra sales.
Consumer Incentive programs - are programs targeting the clients of an organization. Consumer
programs are winding up more broadly used as more companies realize that current clients cost less
to reach, cost less to offer, are less vulnerable to attacks from the competition, and purchase more
over the long term.
Commission only sales compensation designs are actually what they seem like—you pay your sales
people for the business they get and that's it. There is no assurance of pay.
Bonus :Taxable piece of the CTC,usually an once a year single amount sum, given to the worker
dependent on the person's and also the hierarchical execution for the year.
Basic Salary: It is the taxable base income and by and large not over 40% of CTC. Fundamental
compensation forms the premise of salary structure numerous a times. A large portion of the
segments might be characterized as level of essential salary.
Page | 2
REVIEWER-COMPENSATION ADMINISTRATION
Annual incentive plan - A pay plan that rewards the accomplishment of specific results.
An incentive - is something that motivates an individual to perform an action.
9 Salary Structure Components
8 These are the examples of common short-term incentive pay plans
7 Frequently the key components in the executive pay are
6 There are numerous ways that entrepreneurs and HR managers can help workers to achieve a
superior work-life balance:
5 These types of employee benefits that are offered are at the discretion of the employer or are
covered under a labor agreement, so they will vary from company to company.
5 Different Types of Sales Compensation Plans
4 Four general types of tangible incentive program types
4 Different Incentive programs
4 Classification of Incentives
Page | 3