COMPENSATION SURVEY OR COMPENSATION ANALYSIS

COMPENSATION - SURVEY OR COMPENSATION ANALYSIS

One can Survey the Companies

    Or

One can survey the candidates.

(A) Surveying Companies :

    - Requires preparation of elaborate questionnaires

    - Establish "equivalence" (across a group of companies_ of

       .  Grades

       . Scales

       . Levels / designations etc

Without which, comparisons become difficult or infectious.

    - Convincing lot of companies to participate & give - out information in questionnaires and across the table.

    - Having convinced, getting them to do that

    - Setting aside one / two persons (who can command respect) to go and meet dozens of personnel Managers across the country over 2/3 months of time.

    - Then tabulate / analyse the data (thru computerization, of course), Plot graphs/ charts, draw conclusion write report, print and send - out copies to all participating companies.

All of above is

    . Tedious

    . Time - consuming

    . Pain - staking

    . Expensive

    . Not much remunerative ?

If found remunerative, we may still do this sometime in future when

    - Time/ money resources permit

    - We have acquired a "standing" for corporate to respond.

(B) Surveying Candidates

This is even more difficult because

    - A much larger SAMPLE - SIZE is required. Hence greater effort.

    - We cannot promise a copy of report of 2000 executives so, for them, there is no ensuring benefit (what is there for me?) why should be they take the trouble to fill in a questionnaire, spending 2 hours of his precious - time?

    - An executive is reluctant to part with this "CONFIDENTIAL" to somebody who is a total stranger - specially when he sees NO BENEFIT for himself. He is even afraid of this information leading to wrong parties.

All in all this is not a viable proposition.

However,

as far as we are concerned there is a THIRD & SIMPLE alternative which is also

    - Accurate

    - Reliable

    - Fast

    - Provides greater statistical analysis

In our EDS (Executive Data Sheet) we get detailed (break - up) data on an executives

COMPENSATION PACKAGE.

For that executive, we also know (from EDS),

    a - Name/ PEN

    b - City of Posting (Regional Pattern of Compensation)

    c - Edu. Quali - & year of Passing 

   (- Education - wise compensation pattern - year of Passing - wise analysis)

    d - Birth - Date

        (Age - wise analysis)

  e - Current Employer - Company

         (Company wise analysis if there are 20 executives from same company)

          Or

          at least

  - Industry - wise analysis (the industry to which a company belongs)

  f - Post Qualifications (MBA etc)

  Do these guys get a better package as compared to others ?

       . Of come "age"

       . Of same "Industry"

       . Of same basic "Edu. Quali"

g - Total years of Experience

         Across the Industries

           Or

         Within a given industry,

How do salaries "Progress" with exp?

h - Designation

      What are the salary - patterns within each "designation - groups" (hierarchy - levels) ? For same "designation - group", what are the differences / spreads based on

       . Industry

       . Edu

       . Exp.  etc.

Since May 1996, we have started receiving duly - filled in EDS

Till end Nov. 96, We have received ........... 2717

Of these, we have already entered  in computer    = 2000

Of course, there may be some EDS Where, the COMPENSATION - PACKAGE data

       . is totally missing

       . is incomplete

       . is confusing/ erroneous

We would have to ignore such EDS.

But

The balance do provide a good enough "population / sample" to carry - out several statistical analysis

We could thereafter use this analysis for

    - Incorporating "Highlight of Findings" or "overall Trends in compensation" in our quarterly MAILER to 1000 top companies.

    - "Selling" detailed report to those companies who are interested.

The enclosed pages show what type of analysis can be carried out. 

(A)  Designation Group : GENERAL MANAGER

        Designation Group : Manager

        Designation Group : Vice President

        For each "designation - group" repeat Graphs #1/ #2/ #3.

(B) Industry Group : Automotive

           . Consumer Goods

           . Power

           . Telecom

       For each Industry group, repeated graphs #1/ #2/ #3/ #4

(C) Edu - Qualification - Groups

       . Engineers

       . Charted Accountants

       . Co. Seevetaries

       . Commerce Graduates

       . MBAs etc etc

Repeat Graph #1 / #2 / #3/ #4 for each of the Edu. Quali. Groups

(D) REGION (North/ East/ West/ South. Central) / ALL INDIA

        Repeat all graphs "Posting - location" wise to bring - out "Regional Disparities/ Differences" for

          - Same Edu. group

          - Same Age group

          - Same Designation group

          - Same Industry group

          - Same Experience group

          - Same Function group

            (e.g. Mfg/ Mktg/ Sales/ Finances/ Personnel & Adm / R & D etc)

Besides the above mentioned analysis, one could also analysis different "Sub groups" within the total           compensation - package. These are

       . Basic

       . Allowances

       . Perks

       . Reimbursements

       . Annual Payments

       . Retirement benefits

       . Other Benefits

After calculating the "Percentage" (%) of each to the TOTAL package, one could compare these "Sub - Groups" across

       . Industries

       . Regions

       . Designations

To determine the influence of these (Industry - Region - Designation) on the various CONSTITUENTS (i.e. the sub - groups)

Does this analysis e.g. show that

    . Higher the designation higher the perks/ reimbursements

   . Western Region has better Reimbursements

    . North have more "allowance" %

       Or

    . Telecom Ind. has more Perks   etc etc.

    . What companies are offering "Loans" ?

    . What Companies are offering "Co - flats"?

    . what are "tax - free" components?

    . What are "trends" in specific allowances.

      eg.

    . Uniform allow / attire allow

    . Edu. allow / attire allow

    . Lunch/ Canteen allow / attire allow

    . Travel allow / attire allow

    . Entertainment allow / attire allow

    . HRA allow / attire allow

    . CCA allow / attire allow

    . ITA allow / attire allow

    . Medical   Reimbursement

If we wish to "market" compensation Analysis as a "By - Product", we could even consider modifying our EDS and devote one entire page to compensation package

Of course as the SAMPLE - SIZE groups, accuracy will also improve.

h.c.parekh