Job Change - Check this first

Hi,

If you are looking for a Job change..be cautious.In many cases though the new company is giving a good annual salary increase....the take home salary makes a lot of difference. Make sure you understand the "Take home Salary concept".

Things that we should look at while looking for a change would depend on individual circumstances. It may be due to higher compensation, role, manager, brand, title, nearness to home etc. However, if the reason is comoensation.. please make sure you weigh the stuff correctly.Look at your total target compensation for full fiscal year. Include your base, target bonus, long term incentive including any retention plan awarded, gratutity, pension and super annuation (present value-NPV).

Try not to leave your current company during the middle of the year ..you may end up loosing your bonus for most part of the year from your current employer. Because in most of the companies bonus is awarded at the end of fiscal - based on yearly performance. So for instance, if you leave in septmber, then ofcourse you are loosing out on your bonus (from April to Sept.) from your current employer - and your new employer will only award you from the time of the year you joined them. Many companies have bonus programme eligibility rules ..generally speaking if the employee has not been in the organisation from more than six months they are not eligible for any bonus. In such case, you may end-up loosing the bonus from your previous emloyer because you left them in september and your new employerbecause you haven't been with them for six months by the time funding of the bonus pool is done.

Take home concept is also very important. Look at the way in which the salary is structured. Is it more tax friendly... simply speaking if your salary structure gives you the option of showing many thing as reimbursements - its more tax friendly. Reimbursments are not taxable at the hands of the employee (upto to a certain limit). So look out for things like - transport allowance, drivers salary, car maintenance, uniform allowance, Internet/telephone reimbursements, recreation and other benefits etc. This is very important.

I am feeling a bit tired now, but in summary all I wish to suggest is:

a) don't just get lured by new base pay number. Look at the overall comp picture, salary structure and include the target bonus if not anything else.

b) be cautious about the timing of your departure

c) think deep whether you REALLY want to leave your organisation. If yes, then leave them at a good note. World is really small - you nver know when you bang into someone from your old days.

Hope you enjoyed reading it.

regards

Life & Compensation - Some Similarities

Isn't there a sharp similarity between life & Comp. We are never satisified with it. We always want more of it... ,more of life.. more of money. When one is lower in income chain then the need for money is high...when one gradually climbs the income ladder than also need for money s high.

Where does the break-even come ? I assume as far as money is concerned the break-even never comes. We always want that extra money. But with respect the break-even does come in life of most of us. I have not yet reached there but am hopeful. I have a purpose.

You see after all, great minds have purpose others have wishes.

Job Change - Check this first

Hi,


If you are looking for a Job change..be cautious.


In many cases though the new company is giving a good annual salary increase....the take home salary makes a lot of difference. Make sure you understand the "Take home Salary concept".



Things that we should look at while looking for a change would depend on individual circumstances. It may be due to higher compensation, role, manager, brand, title, nearness to home etc. However, if the reason is comoensation.. please make sure you weigh the stuff correctly.



Look at your total target compensation for full fiscal year. Include your base, target bonus, long term incentive including any retention plan awarded, gratutity, pension and super annuation (present value-NPV).



Try not to leave your current company during the middle of the year ..you may end up loosing your bonus for most part of the year from your current employer. Because in most of the companies bonus is awarded at the end of fiscal - based on yearly performance. So for instance, if you leave in septmber, then ofcourse you are loosing out on your bonus (from April to Sept.) from your current employer - and your new employer will only award you from the time of the year you joined them. Many companies have bonus programme eligibility rules ..generally speaking if the employee has not been in the organisation from more than six months they are not eligible for any bonus. In such case, you may end-up loosing the bonus from your previous emloyer because you left them in september and your new employerbecause you haven't been with them for six months by the time funding of the bonus pool is done.



Take home concept is also very important. Look at the way in which the salary is structured. Is it more tax friendly... simply speaking if your salary structure gives you the option of showing many thing as reimbursements - its more tax friendly. Reimbursments are not taxable at the hands of the employee (upto to a certain limit). So look out for things like - transport allowance, drivers salary, car maintenance, uniform allowance, Internet/telephone reimbursements, recreation and other benefits etc. This is very important.

I am feeling a bit tired now, but in summary all I wish to suggest is:
a) don't just get lured by new base pay number. Look at the overall comp picture, salary structure and include the target bonus if not anything else.
b) be cautious about the timing of your departure
c) think deep whether you REALLY want to leave your organisation. If yes, then leave them at a good note. World is really small - you nver know when you bang into someone from your old days.

Hope you enjoyed reading it. I am off to bed now.
regards

Why Compensation ?

Hi,

The first question most of my friends ask me is " Why out of this whole gamut of professions you chose Human Resources and within that Compensation & Benefits..............."

Staright answer: I like listening & talking to people, understanding them. Not just their "external-self" but the internal being. My interest lies in understading "What they are" instead of "What they project they are". I really love this. Whenever we meet people - at office,home,on the road,in the lift,in the bus,taxi,in a plane etc. there are lot of indications beyond words that reflect their persona.

Understanding that "real persona" quickly and translating that understanding into a useful input is what I love. And for putting my this habbit into practise the best career option was Human Resources.

OK..now WHY COMP ?? Organisations today are striving towards offering TOTAL REWARDS* package as best value prepostion for attracting & retaining employees.
(*Total rewards is a mix of comp, benefits, performance management, career path and work-life balance & work culture being offered as a bundle by few employers today)

Among the total rewards compensation has a lion's share. Work Culture,Career path, Work-life balance etc. are VERY important for employees but the closest to most of them is compensation. Most of the discussions boils down to compensation : What are you paid? Something which is closest to every employees heart, something which is very critical to the organisation, something which reveals the real self - compensation was natural choice to me.

Beyond this, I love number crunching. I can play with numbers on MS Excel for nights. The objective make some sense out of those that can be used for some meaningful discussions/descison making.

There a lot a discussion platforms for "comp geeks" (like me:-) but the best I assume is www.worldatwork.org . Earlier known as American Compensation association, World at Work offers the best knowledge platform for people like me. I am really impressed by their paper on Total Rewards which talks about the TR in detail.