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ADDITIONAL READING: SALARIES 2000 Compensation For Competence READINGS LIST THE OBJECTIVE: The second of the BT-Omam Consultants Salary Sweeps for 1999-2000 was designed to obtain data on the designations and salaries of junior managers. THE GRADES: Two universal grades were defined: Junior Management-I, comprising executives with managerial responsibility. And Junior Management-II, comprising front-line executives and officers at the operating level. The typical designations were: Junior Management-I: Deputy Manager/Assistant Manager; Junior Management-II: Senior Manager/Senior Executive/Senior Engineer/Senior Officer/ Executive/Engineer/Officer. THE
SAMPLE: A sample of 100 companies-including Indian firms and
transnationals-w125 THE MODUS OPERANDI: A questionnaire was designed to elicit information on the value and the mode of compensation. And interviews were conducted with the CEO, the HRD head, and a top-level manager, as applicable. THE ANALYSIS: The data was analysed by an Omam Consultants' team. THE COMPUTATIONS: To evaluate the components, the following assumptions were made: Basic Salary: Actual average of the salaries paid. In cases where fixed salaries are paid, those have been considered. Housing Benefits: To compare the rupee equivalent of company-owned or leased housing, a Standard Assumed Value (SAV)-depending on the location of the head-office-was used. When the SAV exceeded a company's prescribed limit for housing, that limit was used instead. Where the limits were not specified, the following values were used: Junior Management-I: Calcutta/Delhi/Mumbai: Rs 6,000. Other Cities: Rs 3,500. Junior Management-II: Calcutta/Delhi/ Mumbai: Rs 8,000. Other Cities: Rs 5,000. In cases where company-leased accommodation is not provided, the House Rent Allowance was considered. Furniture: For company-provided furniture and furnishing, 10 per cent of the cost was considered as the company's annual cost. Vehicle & Vehicle-Related
Benefits: Where a fully-maintained company vehicle is provided, the
monthly cost-including petrol, repair and maintenance, cleaning,
insurance, and road tax-was considered as below: As for Perquisites, the following suppositions were made in the absence of a fixed allowance: Newspapers & Magazines: Rs 500 per month at actuals; Servant Allowance: Rs 1,500 per month per servant; Gas, Electricity, and Water: Rs 2,000 per month; Soft Furnishing Allowance: Rs 2,000 per month; Flat Maintenance Allowance: one month's Basic per annum; Entertainment: Rs 3,000 per month; Foreign Travel: Rs 2,500 per eligible individual per month; Club Membership: Rs 300 per month per club membership; Rs 100, where only entry fee was payable; Credit Card: Rs 200 per card; Lunch: Rs 500 per month if provided free or at a nominal cost or actual amount; Professional Body Membership: Rs 100 per month; and Telephone: Rs 1,500 per month. For Benefits, the following assumptions were made: Medical Benefits: one month's Basic or the stated figure; Pension: 15 per cent of one month's Basic; Provident Fund: 12 per cent of the Basic; Gratuity: half a month's Basic per year of service unless otherwise stated; Superannuation: 15 per cent of one month's Basic per annum. THE PRESENTATION: The compensation package has been divided into 6 segments: Salary. Perquisites. Conveyance. Housing. Medical. And Retirement Benefits. Instead of presenting details about each sub-category as in the past, aggregated figures for each category are now used. Annual payments have been divided by 12 to arrive at monthly equivalents, and the monthly total is the aggregate of the monetised values of each of the 6 components. Disaggregated data on digital medium is available from BT for a fee. |
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