This time we are trying to figure out some basic principles or guidelines to use when one structures rewards and create segments. The Indian reward structure is fairly easy to work on primarily because the broad components are usually determined by three things – tax-friendliness of the components, market competitiveness and legacy structures( what has been followed for several years). In short, it does not challenge the reward practitioner’s mindset to be innovative or proactive. But we need to step outside this framework and understand how our country’s workforce is changing. That sets apart an ordinary rewards professional from a remarkable one.
Here are some important elements that you need to mull over as you review your existing structures –
1. There is nothing called an ideal rewards mix
You have read several articles on how to design an optimal structure and what defines an ideal mix. The truth is that there is no such mix that exists, because nothing can guarantee the...