Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do. There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

Now as I approach my 90th birthday ( 27 June 2023 ) , I invite you to visit my Digital Avatar ( www.hemenparekh.ai ) – and continue chatting with me , even when I am no more here physically

Friday, 13 December 1996

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

No comments:

Post a Comment